Small Businesses: Late Payments

Lord Wills Excerpts

Wednesday 18th December 2013 Lords Chamber

[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.

[Lord Wills (Lab)]

Can the Minister say what instructions or suggestions the Government have given to the state-owned banks to show understanding when small firms find themselves in difficulties through late payment?

[Viscount Younger of Leckie]

That is a very specific question. I will certainly write to the noble Lord on the specific aspects of that.