Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to his oral contribution of 30 January 2018, on Carillion, when he plans to apply the lessons on the need for project bank accounts.

My rt. hon. Friend the Secretary of State and I have set up a Taskforce with industry and unions to advise and help Government to mitigate the impacts of Carillion’s insolvency. Our priority, at this stage, is focusing on the supply chain and their employees. Wider lessons from this insolvency will be learned in due course taking account of the findings of enquiries by the Insolvency Service, Financial Reporting Council, Financial Conduct Authority and several Select Committees.

The Government Construction Strategy committed government departments to use Project Bank Accounts for their projects unless there are compelling reasons not to do so. Since 2011, there has been over £10 billion in cumulative committed spend through PBAs. We are committed to improving payment practices. Our consultation on the contractual practice of cash retention, alongside, a parallel consultation on the effectiveness of the 2011 changes to the “Construction Act” closed on 19 January 2018. We are now considering the responses to the consultation including those referring to the use of Project Bank Accounts.