Volume housebuilders have been forced to defend their decision to reduce costs by cutting payments to supply chains, as contractors and suppliers have reacted with outrage to the move. As housing market conditions deteriorate, Taylor Wimpey and Barratt have written to supply chains to inform them that they plan to cut payments by up to 5%. Letters from some Barratt Homes and David Wilson Homes divisions stated that a 3% cash discount would apply “on all works moving forward.” <br><br>The letters said that the firms “had been able to make some cost reductions however this has not been sufficient to support our end of year position.” Similar letters have been issued by Taylor Wimpey’s George Wimpey and Bryant brands, calling for 5% reductions. A Barratt spokesperson said the move was ”normal business practice in a tight market; we are duty bound to obtain the most competitive price possible.” But Brian Berry, director of external affairs of the Federation of Master Builders, which represents around 1,300 SMEs, said the decision ”flies in the face of all the principles the industry has been trying to develop in relation to the Egan agenda, in terms of respect for people and supply chain partnering.” …