SNIPEF welcomes UK Government plans to tackle late payment and unfair retention practices

Following the announcement in the King's Speech that the UK Government will bring forward legislation on late payments for SMEs, Fiona Hodgson, Chief Executive of SNIPEF, said:

"SNIPEF welcomes the UK Government's commitment to tackling late payment and unfair retention practices within the construction supply chain.

"For many plumbing and heating businesses, particularly SMEs, delayed payments and withheld retentions continue to place unnecessary pressure on cash flow, investment and apprenticeship recruitment.

"The plumbing and heating industry, and the wider construction sector, have waited a long time for meaningful reform in this area, and stronger protections for smaller businesses are overdue.

"However, it is essential that any changes do not simply replace one burden with another. Reforms must be practical, proportionate and avoid creating costly or complex alternative arrangements that could disproportionately impact SMEs and specialist contractors.

"Improving payment certainty and fairness across the supply chain is critical, but the detail of implementation will determine whether these reforms genuinely support smaller businesses in practice."