Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the effectiveness of the Construction Supply Chain Payment Charter; how many companies have signed up to that charter; and what steps he is taking to ensure that 30 day payments become standard across the industry.

The Construction Supply Chain Payment Charter is a voluntary measure which sets standards for payment practices within the industry and aims to create a more collaborative culture and ensure a strong, resilient and sustainable supply chain. To date there are 42 signatories to the Charter.

Unjustified late and non-payment of any amount owed is unacceptable. These practices cause particular problems for small businesses in the construction sector. The Government is committed to tackling them and a number of steps have been taken to improve payment performance including through its own procurement activities, introducing reporting requirements on payment policies and practices and other voluntary measures such as the Prompt Payment Code that promotes 30 day payment terms as the norm for acceptable behaviour in the UK. At the Spring Statement my right hon. Friend the Chancellor of the Exchequer also announced that BEIS will lead on a call for evidence, which will consider evidence to ensure unfair payment practices are eliminated for small business.