Research commissioned by finance specialist Crossflow Payments revealed the figure represents an estimated £22.6bn for the sector as a whole.

Late payments cause small construction companies to forgo investment with 21% saying they would increase marketing and sales budgets, while 21% said they would hire more staff, and another 18% said they would increase the wages of existing staff.

Tony Duggan, Crossflow Payments CEO, said: “Delays in receiving payment promptly from customers are acting as handbrake on small construction businesses, preventing them from making key investment decisions for the future, and ultimately stunting growth.

“In 2017, it should no longer be the case that businesses face such hurdles.”