Drop retentions, says Labour MP

Leading the campaign is Labour MP Claire Curtis-Thomas who has urged the chief secretary to the treasury and the minister for local government to take immediate steps to abolish retentions on central government and local government construction work.

Curtis-Thomas claims retentions can have damaging affects on the profitability and competitiveness of small to medium-sized businesses.

"I cannot understand why the public sector still persists with this anachronistic and adversarial practice, which is greatly out of kilter with the government's desire to engender better practice in the industry involving teamworking and incentivisation," she argues.

The move is backed by the Constructors Liaison Group, whose spokesman, Rudi Klein, states: "The issue of retentions goes against the principles of Best Value…It affects the very notion of partnerships in construction."