Small and Medium-sized Enterprises: Late Payments
Debate between Viscount Younger of Leckie and Baroness O'Cathain
Viscount Younger of Leckie
I have already commented that we do not think that it is right to legislate on that at the moment. However, we are taking a number of important actions, including incentivising fair and transparent payment practices by requiring large companies to report, which I have mentioned, strengthening the Prompt Payment Code, working with industry to establish codes of best practice on fair payment, making further reforms to increase prompt payment in the public sector and increasing access to alternative finance options.
Baroness O'Cathain (Con)
My Lords, surely my noble friend the Minister must be aware that the best way to tackle this matter is by ensuring that every single government department pays and that no government department delays payments; otherwise, how can we tell anyone else that they had better not delay payments?
Viscount Younger of Leckie
We have committed to bring in a number of further reforms to streamline procurement and improve public sector payment practices, including requiring public authorities to accept e-invoices and adopt timely and efficient procurement practices, and giving greater powers to Ministers to investigate complaints raised by the Cabinet Office’s mystery shopper scheme.
Small Businesses: Late Payments
Debate between Viscount Younger of Leckie and Baroness O'Cathain
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.