Apparently, small and medium sized building companies are actually owed billions of pounds, due to the issue of late payments.
In the UK construction industry, late payments are a real issue. So much so that construction is actually ranked as the worst sector for late payments. However, Labour leader Jeremy Corbyn has promised that these businesses will be paid what they are owed. Apparently, a Labour government would ‘force’ large companies to pay their suppliers within thirty days.
Alongside this, a “binding arbitration” would also be set up. This is to ensure that any disputes regarding late payment are resolved. Quarterly tax reports for small and medium sized businesses would also be scrapped.
It has been highlighted by the Nationa Federation of Builders that small and medium businesses cannot expand and grow due to the issue of late payment. The chief executive of the Federation stated: “construction SMEs such as our members are currently owed more than £30bn in unpaid invoices.”
“These are the local companies that – while working hard to make ends meet – employ local workers, train local apprentices and generate money in their local economy.”
“Large companies who continue to fail their payment obligations to SMEs are not helping the construction industry.”
“Especially when we need to focus our resources as an industry to address key challenges such as the shortage of skilled workers and the housing crisis.”
So what do you think? Do you suffer due to late payments? Let us know your thoughts in the comments below.