Construction: Billing
The question
To ask the Secretary of State for Business and Trade, whether his Department has made an assessment of the potential impact of delayed invoice payments on (a) self-employed individuals, (b) sole traders and (c) small businesses in the construction industry.
Answered by Sarah Jones
Smart Data Foundry research shows that small businesses, including those in the construction industry were owed on average an estimated £22,000 in late payments in 2022. This represents a significant cash flow challenge for small businesses, undermining opportunities to invest and innovate.
In September 2024 we announced a package of measures to help ensure small businesses and the self-employed are paid promptly to improve the resilience of supply chains and boost economic growth across the UK.
We will soon launch a public consultation on further measures to address late payments and long payment terms, including specific measures to address the construction contractual practice of retention payments.
Source: Smart Data Foundry (2022) – Payment Speed and Timeliness for UK Small & Micro Businesses – https://smartdatafoundry.com/resources/news/payment-speed-and-timeliness-for-uk-small-and-micro-businesses
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →