Oral Answers to Questions

Gillian Keegan Excerpts

Wednesday 5th July 2017 Commons Chamber

[Neil Parish (Tiverton and Honiton) (Con)]

2. What progress the Government are making on the delivery of the prompt payment code.

[Gillian Keegan (Chichester) (Con)]

9. What progress the Government are making on the delivery of the prompt payment code.

[The Parliamentary Under-Secretary of State for the Cabinet Office (Caroline Nokes)]

Since 2015, we have worked closely with the Government’s major strategic suppliers to encourage them to sign up to the prompt payment code. I am pleased to say that all 32 strategic suppliers that we targeted in 2015 have now signed up.

[Caroline Nokes]

We know how important prompt payment is to smaller businesses, and we are committed to making further improvements to payment practice. We are working to remove all barriers facing small and medium-sized enterprises bidding for Government contracts, and we are committed to increasing spend with SMEs, both directly and through the supply chain. We have also opened the free-to-use Contracts Finder website for suppliers to advertise subcontracting opportunities.

[Gillian Keegan]

Cash flow is vital to small businesses in Chichester and throughout the country. What are the Government doing to ensure that they lead the way and pay their suppliers properly?

[Caroline Nokes]

I welcome my hon. Friend to the House. The Government are committed to paying our suppliers promptly. All public sector buyers must include a 30-day payment term in new public sector contracts, pay undisputed invoices within 30 days, and require that this payment term be passed down the supply chain. Our own payment performance is published quarterly, and the Government are doing brilliantly well in meeting our targets.