Welcome to Government’s proposals to ban retentions & reform late payments

Actuate UK welcomes Government’s proposals to ban retentions & reform late payments

Actuate UK and its members have been calling for a legislative change to stop the payment abuse of cash retentions in construction. We will continue to engage with Government and our members to ensure the implementation of this action is effective and drives the cultural change in our industry towards a safer and higher-quality built environment.

Steve Bratt, CEO of ECA & chair of the Actuate UK Business Group said: “Government has delivered for industry and industry must now embrace the robust implementation of these measures designed to unlock our capabilities.”

David Frise, CEO of BESA, added: “This is a landmark moment for our industry and the wider engineering services sector. We have been campaigning for many years to end the unfair and outdated practice of retentions, which has placed an unacceptable financial burden on specialist contractors.”

We also welcome the Government’s reforms that will see stricter maximum payment terms enforcements, fines for businesses that persistently pay late, statutory interest on late payments and more vigorous reporting from large companies. We are pleased to see the new powers to Small Business Commissioner’s Office (SBC). Although the construction sector will not directly benefit from it (as not in scope of SBC) the proposed improvements will improve the general payment conditions in the economy.

Rob Driscoll, ECA Director of Legal & Policy, commented on behalf of Actuate UK’s Business Group: “These announcements demonstrate Government’s recognition of the value strong supply chains play in the UK’s growth agenda. Retentions have plagued our industry for too long holding back, skills, technology and growth”.

Debbie Petford BESA's director of legal and member of the Actuate UK Business Group: “We have been waiting a long time for meaningful reform backed by legislation, and the proposed ban on retentions is a critical part of that. While there is still work to do on implementation, this is a major step towards creating a business environment where firms can thrive, not just survive.”

Actuate UK joins InstallerSHOW 2026 as a strategic partner

24 April 2026

Actuate UK InstallerSHOW2026 Partnership. InstallerSHOW 2026 isn’t just another exhibition; it’s a truly transformative event for the installation, trades and built environment sectors. If you’re an installer, builder, carpenter, electrician, decorator or business owner connected to any aspect of installation or the built environment, InstallerSHOW 2026 promises to be the most practical, innovative and rewarding edition yet.