Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what steps his Department is taking to ensure that original equipment manufacturers pay their supply‑chain suppliers within 30 days; what reporting and transparency requirements apply to foreign prime contractors in respect of their payment practices; and what guidance his Department issues to original equipment manufacturers that seek to delay payments to suppliers in order to manage cash flow for overseas parent companies.

The Ministry of Defence conducts regular spot checks on all contracts in scope of PPN 021: Payment Spot Checks in Public Sub-Contracts to ensure compliance with the 30-day payment term across the supply chain. The results of these checks are published online, and appropriate action would be taken against suppliers failing to meet the payment requirements of the Procurement Act 2023.

All suppliers and their subcontractors are encouraged, through tender documentation, to commit to good payment practices by registering with the Fair Payment Code. This demonstrates their commitment to timely and fair payment practices.