Small Businesses: Late Payments

Baroness O'Cathain Excerpts

Wednesday 18th December 2013 Lords Chamber

[Viscount Younger of Leckie]

I know that the noble Baroness has a long and very successful history in this field. Of course, I very much support what she says and, with her, I encourage businesses to do just that.

[Baroness O'Cathain (Con)]

Can my noble friend give a copper-bottomed guarantee that no government department goes beyond the pay days to pay its debts? If he cannot, can he make it very clear to his lords and masters that that is what is demanded of them and that in future we will need that guarantee?

[Viscount Younger of Leckie]

The Government aim to lead by example. Since 2010, all central government departments have been committed to paying at least 80% of their invoices within five days. I am pleased to say that my own department, BIS, pays 97.3% of its invoices within five days. My noble friend makes a good point. We want small businesses working on public sector projects to benefit from prompt payment.