The Times reports that the letter, sent by the housebuilder’s Manchester office, detailed cuts for bricklayers and labourers, the abolishment of weekend overtime payments and stricter payment terms.

The letter also said that weekend working “incentive payments”, essentially overtime to complete overdue work, would be abolished. Day-work rates would be reduced, it said, and it suggested some supplier payments would be delayed.

Barratt said that the letter, first reported by Construction Enquirer, had been sent by an individual acting above their authority and the terms were “not company policy”.

A spokesperson for Barratt Developments said: “Our suppliers and contractors are fundamentally important to us and we work closely with them all to agree appropriate payment rates.

“This letter was sent in error, is not company policy and we have contacted all those who received the original letter to make that clear and to work with them individually to agree rates going forward.”