The Scottish Government has confirmed its support for the UK Government’s Commercial Payments Bill, marking an important milestone in the drive for fairer payment practices across the construction supply chain. The Bill seeks to address long-standing concerns around payment terms, late payment, retentions and enforcement, with the aim of improving cashflow and strengthening protections for businesses.
The Scottish Government’s Legislative Consent Memorandum recognises that many of the Bill’s provisions extend into devolved areas and recommends that consent be granted.
Payment and retention abuse remain one of the most persistent challenges facing construction. While successive reforms have attempted to improve payment processes, they have largely failed to reduce cashflow pressures and disputes caused by delayed payments and the withholding of retention money. The Commercial Payments Bill is recognition that stronger legislative intervention is needed to deliver the improvements that industry has been seeking for many years.
FIS has consistently campaigned for measures that improve payment practices and strengthen the position of specialist contractors. Fair payment is fundamental to creating a healthier industry and supporting businesses to invest with confidence.
As the Bill progresses in juristictions across the UK, FIS will continue to engage with policymakers and officials to help ensure that the intent of the legislation is protected and that the final measures deliver meaningful benefits for the supply chain. Whilst there remains some opposition, this is a unique generational opportunity to translate the ambitions behind the Bill into practical improvements that support businesses, encourage investment and strengthen the construction sector for the long term.
The Scottish Government’s backing is more than a procedural step. It is an important endorsement of the principle that a sustainable construction industry depends on fair and effective payment practices. FIS will continue to monitor developments closely and represent members’ interests as the legislation moves towards implementation.
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The Commercial Payments Bill Scotland. Legislative Consent Memorandum(s) lodged: