Question

To ask the Secretary of State for Business, Innovation and Skills, what recent discussions he has had with specialist subcontractors in the construction industry on tackling late payment to small and medium-sized businesses.

The Government takes the issue of prompt payment seriously and respects some of the differences which prevail in the construction industry. We are taking a number of steps, including promoting project bank accounts, through Government procurement. More widely, the Industrial Strategy for Construction committed to developing a construction supply chain payment charter, which was published on 22 April. The Charter sets out 11 “Fair Payment Commitments” including a commitment to reduce payment terms to a supply chain to 30 days from January 2018. The Leadership Council will encourage construction businesses from across the whole supply chain to comply with it.