Menu
Wed, 17 April 2024

Newsletter sign-up

Subscribe now
The House Live All
How do we fix the UK’s poor mental health and wellbeing challenge? Partner content
Health
Communities
Mobile UK warns that the government’s ambitions for widespread adoption of 5G could be at risk Partner content
Economy
Environment
Economy
Press releases

NFB: lower interest rates could worsen construction late payment issues

National Federation of Builders

1 min read Partner content

The Bank of England’s Monetary Policy Committee has cut base interest rates from 0.5% to an historic low of 0.25%.


The National Federation of Builders (NFB) believes that this measure will affect how late payments are calculated. The Late Payment of Commercial Debts Regulations 2013 allows companies that are owed payments to charge interest at 8% of the debt plus the Bank of England base rate. If the Bank of England cuts interest rates, the amount of money that creditor businesses may claim will inevitably fall.

Richard Beresford, chief executive of the NFB, said: “The construction industry has the worst payment record of any sector, with 31% of all late payment in the UK. Construction SMEs are owed more than £30 billion in unpaid invoices.

“Although we understand the Bank of England’s decision takes a range of issues into account, we would ask the Government to step up efforts to ensure late payment is tackled more aggressively throughout the construction industry. Avoiding paying subcontractors in the supply chain will not help attract new workers into the industry, especially at a time when we need to address the skills shortage, the housing crisis and convince the Government that we can deliver on planned infrastructure.”

Categories

Economy
Podcast
Engineering a Better World

The Engineering a Better World podcast series from The House magazine and the IET is back for series two! New host Jonn Elledge discusses with parliamentarians and industry experts how technology and engineering can provide policy solutions to our changing world.

NEW SERIES - Listen now