The decision means project bank accounts are now being used on major Government jobs across England, Scotland, Northern Ireland and Wales.

More than £4bn of work is now channelled through PBAs, a target the Government set itself to achieve in 2014, three years ago.

M&E subcontractor trade body, The Specialist Engineering Contractors’ Group, has now called on Government to extend the measure for protecting supply chain payment to local authorities.

SEC Group chief executive Rudi Klein said: “I wrote to the Prime Minister last month to let him know of progress.

“After all PBAs ensure that small businesses will get paid and will not be at risk of insolvencies higher up the chain”.

He added: ” We are inviting the Government to set new targets for PBAs.

“The time has come to promote PBAs throughout the public sector including local councils, police and fire authorities.

It is also time to encourage utilities regulators to promote PBAs and extend coverage to include consulting as well as contracting firms.”

Major government departments and agencies such as the Defence Infrastructure Organisation, Ministry of Justice, Highways Agency and the Environment Agency are now securing payment to suppliers through the system.

Jane Hutt, Minister for Finance in Wales, said: “Access to finance and cash flow are vital to smaller sub-contractors and it is only fair that they receive prompt payment in accordance with contract performance.

“I am therefore announcing today that Flintshire, Swansea and Torfaen Councils have all identified construction projects to pilot the use of Project Bank Accounts in Wales.”

Each Council has identified at least one project from their 21st Century Schools programme with the possibility of other construction projects trialling the approach also.

The option to adopt PBAs also features in the North Wales framework agreement for delivery of future schools building programme incorporating all six North Wales Local Authorities.