More than 60 trade bodies are backing new legislation to reform the practice of cash retentions.

Following the collapse of industry services firm Carillion earlier this year, a coalition of organisations are supporting Peter Aldous MP's 'Aldous Bill', which seeks to ensure payment retentions are protected in special ring-fenced deposit schemes to minimise damage to the supply chain in the event of insolvencies.

Major trade bodies supporting the Bill include the include the Federation of Master Builders and the Federation of Small Businesses, as well as organisations right across the supply chain including electrical, plumbing, heating, interiors, house building, roofing, scaffolding and demolition.

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Mr Aldous has said: "This coalition of support shows the urgent need for reform and unity of industry following Carillion. Support covers so much of the industry that we now have a golden opportunity to change construction for the better.

"I hope government gets behind industry and this Bill. We need action to protect SMEs before more millions are lost, and this Bill is about ensuring people's money is safe so businesses can grow and invest in their future."

Electrical Contractors' Association (ECA) Director of Business, Paul Reeve, said: "Quite simply, the time for major change to retentions is now.

"Putting retentions in trust would help to protect the supply chain from future upstream insolvency, and it would reduce the amount held in retentions when buyers see that they can no longer use suppliers' cash to support their own business model."

Building Engineering Services Association (BESA) Public Affairs & Policy Manager, Alexi Ozioro, added: "Levels of support for the Bill are very encouraging, and this is a real opportunity for government to show it can respond to urgent developments and legislate on more than just Brexit. It will take months, maybe years to feel the full effect of Carillion, and what this Bill will do is make sure thousands of people can enjoy a more secure future."

The second reading of the Bill is scheduled to take place on Friday, 27 April.

(LM/MH)