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

10th June 2026

IPCOM to acquire French distributor Le Froid Pecomark

BELGIUM/FRANCE: IPCOM, the Belgian group of HVAC equipment and insulation solutions suppliers, is set to acquire a majority stake in French distributor Le Froid Pecomark.
9th June 2026

LFB Group acquires French AHU company Hydronic

FRANCE: The LFB Group has acquired French air handling unit manufacturer Hydronic from the Eoliance air treatment group.
9th June 2026

European citizens back heat pump switch

EUROPE: A new YouGov poll is said to have indicated that European citizens see clean energy independence as a safety issue, not just a climate concern.
9th June 2026

Swegon merges Zent-Frenger and Barcol-Air

SWEDEN: The Swedish HVAC equipment manufacturer Swegon has combined its Zent-Frenger and Barcol-Air Production businesses under the new name Swegon Operations HEP GmbH.
8th June 2026

Former Ziehl-Abegg chairman Uwe Ziehl dies

GERMANY: Fans and ventilation equipment manufacturer Ziehl-Abegg is mourning the death of its long-serving former chairman Uwe Ziehl.
8th June 2026

Nidec develops 300kW capacity CDU

JAPAN: Nidec claims to have developed a prototype in-rack CDU with a cooling capacity of up to 300kW.