Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the joint report of the Business, Energy and Industrial Strategy and Work and Pensions Committees on Carillion, published on 9 May 2018, HC 769, whether the Government is taking steps to tackle the practice of discounting invoices and Early Payment Facilities as used by Carillion; and if he will make a statement.

The Government is clear that standard payment terms beyond 60 days are not acceptable in the great majority of cases, and that businesses should not have to pay any fee or offer a discount in order to be paid on time. The Carillion scheme of 120-day payment terms for many of their suppliers was unacceptable.

The Government’s existing policies will aim to help foster a culture change and ensure small businesses are empowered to challenge unfair payment practices. We recognise there is a need to go further to protect businesses from the culture of late and unfair payment, which is why we launched a call for evidence to seek views and experiences on the impact of unfair payment practices and proposals for measures to create a more responsible payment culture. The call for evidence will close on 29 November.