Late payments pose a particularly acute threat to firms in the construction sector. The Government’s construction playbook sets out that Project Bank Accounts should “be used unless there are compelling reasons not to.” This loophole had permitted government departments to turn a blind eye to poor payment practices amongst their contractors. The Government should update its construction playbook to end this loophole and drive meaningful improvements in SME cashflow. (Conclusion, Paragraph 47)

Late payments pose a particularly acute threat to firms in the construction sector. The Government’s construction playbook sets out that Project Bank Accounts should “be used unless there are compelling reasons not to.” This loophole had permitted government departments to turn a blind eye to poor payment practices amongst their contractors. The Government should update its construction playbook to end this loophole and drive meaningful improvements in SME cashflow. (Conclusion, Paragraph 47) Type: recommendation | Number: 9 | Response status: response_pending