Select committee: Business, Innovation, Science and Trade Committee

Recommendation 9

15th Report – Small business strategy Published 11 Feb 2026 Addressed to Department for Business and Trade
Recommendation (the committee's words)
Late payments pose a particularly acute threat to firms in the construction sector. The Government’s construction playbook sets out that Project Bank Accounts should “be used unless there are compelling reasons not to.” This loophole had permitted government departments to turn a blind eye to poor payment practices amongst their contractors. The Government should update its construction playbook to end this loophole and drive meaningful improvements in SME cashflow. (Conclusion, Paragraph 47)

From: Business, Innovation, Science and Trade Committee, 15th Report – Small business strategy (HC 1057), 11 February 2026

Government response

No government response linked yet: deadline 11 April 2026, 204 days ago.