World News

Industry news and insights from Europe and around the World

UK News

Latest news and developments in the United Kingdom

Products

Keep up-to-date with the latest new products and technology

Features

General articles, applications and industry analysis

Councils ignore prompt payment law

47331516_m

UK: The majority of local authorities in the UK are flouting government prompt payment laws, according to a new report by the Electrical Contractors’ Association (ECA).

A freedom of information request to local councils in England is said to have revealed that 59% are flouting the law requiring contracting authorities to ensure that every public contract contains suitable provisions to pay invoices within 30 days.

Asked whether they were meeting the requirements in the Public Contracts Regulations 2015, the FOI request found 52% had not yet built in a contractual requirement for payment to flow thorough the supply chain within 30 days. A further 7% were unaware that they were required to do this.

Only 9% said they monitored and reported on whether their supply chain is being paid within 30 days. Worryingly, 28% said they had no intention of building in a contractual requirement to ensure the supply chain is paid on time.

“Our survey shows that many local authorities continue to ignore the legal requirements for prompt public sector payment along the supply chain. It’s particularly disappointing when one considers that doing so would support SMEs in their local areas,” said ECA director of business and external affairs Paul Reeve.

fujitsu_gif_v1.8
Advertisement

“We have seen next to no improvement among many local councils since the ECA conducted a similar investigation last year. The government has issued regulations to help smaller businesses, but they are being viewed as optional by far too many councils, and too many are opting out.

“What we need is for government to approach those who flout the law and to make it harder for them not to comply, than to comply. The government could impose penalties to achieve this.”

In October 2015 the ECA also asked local authorities about their payment practices. One year later, there has been an improvement in the number of councils building in supply chain contractual requirements for 30 day payment (from 28% to 40%). A further 25% said they planned to insert contractual requirements, though the provision has been in place for 18 months.

However, there was a year-on-year increase in the number of councils stating they would never build in contractual requirements for prompt payment (from 21% to 28%). This is in direct contravention to the law.

Latest News

29th August 2026

ICS and MTA combine operations in Germany

GERMANY: The German subsidiary of Italian chiller manufacturer MTA and the German branch of chiller hire company ICS Cool Energy are combining under the name MTA Deutschland GmbH.
29th August 2026

Solstice and Element Solutions cancel merger

USA: Solstice has announced that it is to terminate by mutual agreement its proposed $14.5bn acquisition of specialty chemical manufacturer and supplier Element Solutions.
28th August 2026

World Ventilation Day event takes on overheating

UK: BESA will mark this year’s World Ventilation Day with an event in London focused on overheating in the built environment.
28th August 2026

Wittwer appointed president Trane commercial HVAC Europe

IRELAND: Trane Technologies has appointed Adam Wittwer as president, commercial HVAC Europe, reporting to group president, EMEA and Asia, Jose La Loggia.
28th August 2026

Beijer Ref training academy open day

UK: Beijer Ref is to hold an open day at its training academy in Wetherby on October 1.
27th August 2026

Cellar coolers are refrigeration equipment

UK: The British Refrigeration Association has welcomed confirmation that restrictions on single-split air conditioning systems under the GB F-gas regulations do not apply to systems used solely for cooling products.