Boateng addresses the issue of retentions

The Specialist Engineering Contractors Group (SECG) met the Treasury's chief secretary Paul Boateng this month to discuss retentions.

An estimated £3.25bn in cash retentions is funded by SMEs every year with the annual cost to the public purse an estimated £750m. The public sector is responsible for 40% by volume of all construction work in the UK.

House of Commons Select Committee reports have urged government departments to lead by example by adopting new procurement practises and a uniform approach to phasing out retentions.

The Treasury is reluctant to commit to a timescale for phasing out retentions, focusing instead on