Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what proportion of contracts issued by his Department and contractors include provisions to impose, as between parties to the subcontract, that any payment due from the contractor to a subcontractor under the contract is to be made no later than the end of a period of 30 days from the date on which the relevant invoice is regarded as valid and undisputed, as required by the Public Contract Regulations 2015.

Through the Public Contract Regulations 2015, all public sector buyers must include 30-day payment terms in new public sector contracts and require that this payment term be passed down the supply chain. Public sector buyers must also publish annually on their payment performance. Her Majesty's Government strongly encourages businesses to report poor payment practice and instances of late payment, including late payment through the supply chain, in public sector contracts to its Mystery Shopper service. Mystery Shopper will then investigate.

The Ministry of Defence has a contract condition (DEFCON 534) which states that all contractors shall pay subcontractors any sums due under an invoice no later than 30 days from when the contractor has determined the invoice is valid. The number of contracts that explicitly include DEFCON 534, or other clauses to this effect, is not held centrally and could be provided only at disproportionate cost.