This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

More than 100 MPs support supply chain cash retentions proposal

19 April 2018

Cross-party political support has been announced for placing cash retentions in trust accounts, so they are protected from the event of companies going out of business and instances of non-payment.

It is reported that more than 100 MPs have now pledged support from parties including the Conservatives, Labour, Liberal Democrats, SNP, DUP, Plaid Cymru and the Green Party.

The issue has been discussed for many years, particularly within the construction sector, and affects a high number of FM service providers.

Those supporting the placing of retention payments into trust accounts include the Conservative's Kenneth Clarke, Labour Shadow Chancellor John McDonnell and Shadow BEIS Minister Rebecca Long-Bailey, Liberal leader Sir Vince Cable and Green Party leader Caroline Lucas.

An Early Day Motion proposed by James Frith MP on 23 January received the support of 61 MPs, with a further 12 MPs co-sponsoring the Aldous Bill, additionally supported by major industry associations.

Industry bodies particularly active in this area are the Specialist Engineering Contractors' (SEC) Group, the Building Engineering Services Association (BESA) and the Electrical Contractors' Association (ECA).

With more than 100 MPs now supporting the Aldous Bill, the second reading of this will take place on 27 April.

Peter Aldous MP said support for the proposal is "at unprecedented levels" and emphasised the importance of protecting cash retention payments, particularly for SMEs in the supply chain.

"We have a golden opportunity to improve the industry for the better, level the playing field for SMEs and protect thousands and thousands of jobs.

"The industry loses around £1m [of cash retentions] for each working day, mostly from SMEs," he said.

Further support on late payment was pledged by Chancellor Philip Hammond in his Spring Statement, when he stated there would be further action on companies that do not pay their suppliers on time.


Print this page | E-mail this page

http://www.fsifm.com
PFM


MOST VIEWED...

View more articles
Article image

Drive to improve procurement practices continues to gather pace

Following calls to improve procurement processes in all areas following the collapse of Carillion last year, the Construction Industry Training Board (CITB...
Article image

Government urged to 'avoid Apprenticeship Levy mistakes' in T levels

Lack of awareness for the new T level qualifications has been highlighted by a recent survey conducted by manufacturers' association Make UK....
Article image

Early involvement of FMs called for in Soft Landings topic guide

Publication of its Soft Landings and Business-Focused Maintenance Topic Guide has been announced by BSRIA, designe...
Article image

Communication is essential for delivery of health and safety

Complying with legislative requirements in all areas of facilities is one of the overriding areas of concentration for all FMs and these are often regarded...
Article image

Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the r...
Article image

The rise of the specialist service provider

There is a big shake up going on across the facilities management (FM) market as clients recognise they need more engineering support to help them keep the...
MPU