FIS has been featured in a recent Financial Times article examining the growing pressures within the UK housing sector and the often-overlooked impact on the specialist construction supply chain.

While much of the public discussion around housing focuses on delivery targets, investor confidence and market performance, FIS has reinforced the importance of recognising the role of the supply chain, the businesses and people actually delivering homes on the ground.

Drawing on recent FIS research into procurement, payment and contract management practices within the housing sector, the article highlights concerns that specialist contractors are increasingly being used as a financial buffer within the system, carrying disproportionate levels of risk and cashflow pressure.

FIS has consistently warned that these practices are unsustainable and are having wider consequences across the sector, including restricting investment in skills, innovation and business growth, while contributing to rising levels of financial and mental stress within the workforce.

The article reflects the growing recognition that achieving long-term housing ambitions will require more than headline targets alone. It will also depend on creating a healthier, more sustainable commercial environment throughout the supply chain.

FIS would like to thank Megan Snaith for covering this important issue and helping bring greater visibility to the challenges faced by specialist contractors across the finishes and interiors sector.

FIS has responded on behalf of its members to both Government consultations on construction product regulatory reform through the White Paper and the General Safety Requirement (GSR). Both of these consultations and the changes to legislation that they propose will affect many across our membership, with particular focus on suppliers as products that are covered by a designated standard (or an ETA/UKTA) are captured by the proposals in the White Paper, whereas products not covered by a designated standard are captured by the new General Safety Requirement.

FIS engaged with members from across interior sectors at our working group forums to discuss all the proposals and also worked closely with the Construction Products Association (CPA) to determine our response which is closely aligned with the response from the CPA.

Members who would like to see a copy of our response to either the White Paper or the General Safety Requirement should contact our Technical Director jamesparlour@thefis.org

FIS is inviting members to review and comment on our draft response to the Building Safety Regulator’s latest consultation on Category A and Category B works, ahead of a final submission at the end of May.

The consultation focuses on improving proportionality within the Higher-Risk Building (HRB) regime by reclassifying certain works and expanding the potential role of Competent Person Schemes (CPS). While the proposed reforms aim to reduce unnecessary bureaucracy and speed up delivery, they also signal a significant shift in how compliance is managed.

The details of the consultation were presented at a workshop on 18th May.  The suggestion is to reclassify most in-flat works as Category B, this would mean many small projects inside flates, such as work on internal (non load bearing) partitions or fire door replacements are currently captured within Category A, creating a seemingly disproportionate levels of documentation and delay.  The consultation also seeks to recategorise smaller works in communal areas in a similar way. 

A number of critical issues were discussed that will form the core of the FIS response.

Mixed-use buildings – a key gap

One of the strongest themes from the meeting was the lack of consideration for mixed-use buildings.

The consultation currently focuses on residential units, but it was emphasised in the discussion that similar compartmented environments exist in other categories of space – including offices, retail spaces, and other commercial units. In these cases, comparable works could face very different regulatory treatment despite carrying similar levels of risk.

FIS is therefore questioning whether the current approach reflects modern building design and delivery, and is calling for greater consistency in how different unit types are treated. The response also highlights the need for clearer guidance to avoid confusion, particularly in projects where multiple uses sit within the same building.

Competence vs Capability – getting the balance right

Another key issue raised during the workshop was the shift towards competence-based regulation.

While members recognise the benefits of reducing reliance on prescriptive documentation, there is concern that current proposals place too much emphasis on individual competence, particularly through the expansion of self-certification schemes.

The FIS response stresses that successful delivery depends not only on skilled individuals, but also on organisational capability – including supervision, coordination, quality systems, and ongoing assurance. Existing certification schemes such as FIRAS and IFC were cited as providing this broader assurance, and members were clear that reforms should build on these frameworks rather than introducing new, overlapping accreditation requirements.

Guidance, clarity and practicality

Concerns about the practical implementation of the proposals, particularly around defining “small-scale” works using thresholds such as time and workforce. There was a strong view that these measures do not always align with real risk and could introduce further ambiguity.

As a result, FIS is calling for:

• Clearer, consolidated guidance
• Better alignment with real-world project delivery
• More practical examples to support consistent decision-making

Without this, there is a risk that the industry continues to default to Category A as a precaution, undermining the intended benefits of reform.

Have your say

FIS is now asking members to review the draft response and contribute any additional comments or examples from their own experience.

Deadline for comments: 26 May
Final submission: 28 May

This consultation represents a critical opportunity to shape how building safety regulation evolves, particularly for fit-out, refurbishment, and interiors work.

As Iain McIlwee commented during the session:

“This is about getting the balance right – reducing unnecessary burden without losing control of safety. But we need to make sure the system reflects how buildings are actually delivered.”

Members are encouraged to share feedback.  Details of the meeting and the draft response are available below.

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Ministers announce the introduction of legislation to tackle late payments and protect small businesses.

Small businesses will no longer be left chasing money they are already owed, as ministers today [Tuesday 19 May] introduce landmark legislation to end the scourge of late payments and back millions of sole traders, freelancers, and family firms across the country.

The Small Business Protections Bill (formally known as the Commercial Payments Bill) delivers the toughest crackdown on late payments in a generation – putting a clear duty on large firms to pay smaller suppliers on time and giving small businesses the certainty they need to keep investing, supporting jobs and growing their communities.

It comes as the Prime Minister and Business Secretary are expected to welcome small business owners to Downing Street to mark what leaders have called a “historic moment for small firms”.

Late payments close 38 businesses every single day because they are not paid on time. That’s the equivalent of 266 a week, and well over a thousand in any given month. For business owners, the impact is immediate and personal – forcing them to spend hours chasing invoices instead of running their businesses and putting jobs and livelihoods at risk.

The Bill fundamentally changes how businesses pay each other, putting an end to excessive delays and unfair practices that hit small firms hardest, through sweeping new reforms.

Iain McIlwee, FIS Chief Executive said:

“This is a historic and very good day for all in construction who have suffered from Late Payment and Retentions Abuse.  It isn’t the end, but my strong hope and belief it is the beginning of the end and an opportunity for the sector to grasp and use to find a better way to do business and remove the frictions associated with the dash for cash and behaviours that have undermined relationships and constrained opportunity to evolve.  I’d like to thank colleagues from within the Department and across the sector who have tirelessly championed better and brought us to this moment”.

Prime Minister Keir Starmer said:

“Small businesses are the backbone of our economy – run by people who take risks, create jobs and keep communities going. This government is firmly on their side.

Too many small business owners are spending hours chasing money they are owed and when payments don’t come through, the cost is personal. It’s about whether you can pay your staff, keep the lights on, or invest in your future.

Today we’re changing that with the toughest action on late payments in a generation, so small businesses get paid on time and get the backing they need to grow, create jobs and serve their communities.”

Reforms include a clear 60-day cap on payment terms on all large firms paying smaller suppliers, mandatory interest on late payments, set at 8% above the Bank of England base rate, and a ban on the practice of withholding retention payments under construction contracts.

On top of this, the Small Business Commissioner is getting major new powers to investigate poor payment practices,  adjudicate disputes, and fine the worst offenders – with potential fines that could be worth tens of millions for persistently late payers.

The Office of the Small Business Commissioner has already recovered more money for small firms in the last year than in the previous four years combined.

By improving cashflow through supply chains, the Bill supports productivity, growth and keeps our small businesses afloat, by giving them the certainty they need to invest and grow.

Vitally too for construction, the Bill starts to set down how abolition of retention will be enacted.  

Business Secretary Peter Kyle said:

Costing the UK economy £11 billion every single year, late payments choke growth, cost jobs, and force too many good businesses to close. That ends today.

Through this landmark bill we are delivering the toughest payment reforms in over a generation, to give the UK the strongest legal framework in the G7, and back small businesses with the certainty they need to grow and thrive.

The Bill builds upon and strengthens legislation first laid out in the 1998 Late Payment of Commercial Debt Act, over 25 years ago, to give us the strongest legal framework on late payments in the G7.  It will also require changes to the

Housing Grants, Construction and Regeneration Act 1996 (commonly referred to as the Construction Act. 

To find out more about the  Small Business Protections Bill Click Here. 

The Bill is due to be introduced in the House of Lords on Tuesday 19 May.

The latest Skills Board meeting focused on major developments at Department for Work and Pensions (DWP) around construction workforce reform, youth employment support and industry training investment. Members discussed DWP’s £1.5 billion Youth Guarantee programme, which aims to help 16–24-year-olds access education, training and employment opportunities over the next three years. Key measures include expanded Youth Hubs, increased work experience and sector based placements, additional apprenticeship support for SMEs and the introduction of foundation apprenticeships combining paid work with structured learning. Discussions also explored proposals for guaranteed paid work placements for long-term unemployed young people and the importance of sector specific training pathways to improve work readiness before entering construction roles. 

The meeting also covered ongoing reform across the construction skills system, including discussions around the proposed merger of CITB and ECITB to form a single industry training board and the potential opportunities and risks associated with greater alignment across the sector. Members highlighted possible benefits such as reducing duplication and increasing levy funding available for training and grants, while also raising questions around future governance and long term delivery.

Updates were also provided on a number of training and workforce initiatives, including new pilot programmes for Steel Framed Systems training, Apprenticeship and qualification reviews, expanded E Learning provision and specialist workforce upskilling support for fit out, drylining and plastering. Wider discussions focused on improving regional training access, strengthening employer confidence to invest in skills and exploring the future development of digital skills passport systems to support workforce planning across construction. 

Full details of the meeting can be found here 

If members are interested on joining the FIS Skills Board, please contact Marie Flinter (marieflinter@thefis.org) or Beena Nana (beenanana@thefis.org)