Late Payments - Statement

Part of the debate – in the House of Lords at 6:05 pm on 19th June 2019.

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Photo of Lord Shipley Lord Shipley Liberal Democrat 6:05 pm, 19th June 2019

My Lords, what thought have the Government given to introducing ring-fenced bank accounts for major government projects delivered by the private sector, so that subcontractors are guaranteed prompt payment and do not have to worry about the main contractor’s financial health? I understand that the policy is supported by the Federation of Small Businesses and was recently adopted by the Welsh Government. As an example of the problem, before its collapse Carillion’s average payment time was 43 days—with some firms waiting up to 120 days for payment—despite it signing the Prompt Payment Code and being subject to the Public Contracts Regulations.