Did you know that there is a version of The Construction Index for the USA? Visit the site No thanks
Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Thu October 27 2016

Related Information
Related Information
Related Information
Related Information

News » UK » Builders fear impact of interest rate cut » published 5 Aug 2016

Builders fear impact of interest rate cut

The reduction in central bank interest rates from 0.5% to 0.25% could exacerbate the problems that builders face with late payments.

The Bank of England Above: The Bank of England

The National Federation of Builders (NFB) says that yesterday’s decision by the Bank of England’s monetary policy committee to cut base interest rates 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 also fall.

NFB chief executive Richard Beresford 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 £30bn 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.”




Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 5 Aug 2016 (last updated on 5 Aug 2016).

More News Channels