The government plans to ban construction retentions as part of a big crackdown on late payments, to protect small firms from non‑payment and insolvency. 

A consultation will explore how it will be implemented, with most of the industry favouring a complete ban of both retentions anad other alternatives such as project bank accounts. 
A 12–24 month transition is proposed. 

Wider reforms include more powers for the Small Business Commissioner, heavy fines for determined late payers, a 60‑day payment cap, and mandatory interest on late payments. 

Contractors largely welcome the move for improving cashflow, but clients warn that without effective alternatives it could affect build quality.