Oral Answers to Questions

Debbie Abrahams Excerpts

Thursday 6th March 2025 Commons Chamber

[Jack Abbott (Ipswich) (Lab/Co-op)]

12. What steps he is taking to support small and medium-sized enterprises in public procurement.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

13. What steps he is taking to support small businesses in public procurement.

[Jess Asato (Lowestoft) (Lab)]

17. What steps he is taking to support small and medium-sized enterprises in public procurement.

--- Later in debate ---

[Georgia Gould]

There is so much young talent in Ipswich and in communities across the country, but too many young people are struggling to get on to the employment ladder, and we know the scarring impact that that can have on their lives. We need to ensure that the �400 billion spent on public procurement means something in communities such as Ipswich. We are streamlining how we measure social and economic value so that there is a very clear ask that is linked to our missions, including the opportunity mission, to deliver jobs and skills to young people out of work. We are asking those who win Government contracts to advertise in local jobcentres so that people in Ipswich and communities across the UK can benefit from Government contracts.

[Debbie Abrahams]

In January it was reported that nearly 7,000 construction firms were on the brink of insolvency�that is on top of the 4,000 that folded last year. A major cause of this is payment delays by large contractors. Given that project bank accounts, which protect against payment delays, are used by only some Departments, will the Minister act where the previous Government failed to do so and introduce these accounts across all Departments?

[Georgia Gould]

I really welcome this question. It is so important to small businesses that they are paid on time�I have heard time and again that late payments threaten their very existence. The construction playbook states that project bank accounts

�should be used unless there are compelling reasons not to.�

We are determined to crack down on late payments. We have announced regular spot checks on prompt payments throughout our supply chains, and in the Budget the Chancellor said that the Government will be required to exclude suppliers from bidding for major contracts if they cannot demonstrate that they pay within an average of 45 days. I welcome my hon. Friend�s work on this matter, and I very much enjoyed meeting her to discuss it. I know that she has built a wide coalition, and I hope we can continue to work together on these important issues.