Treasury: Billing

(asked on 19th March 2020) - View Source

Question to the Cabinet Office:

To ask Her Majesty's Government what action they are taking to reduce the time taken to pay their subcontractors.


Answered by
Lord True Portrait
Lord True
Shadow Leader of the House of Lords
This question was answered on 30th March 2020

The Government should set a strong example by paying subcontractors promptly. Our commitment is to pay 90% of undisputed and valid invoices from small and medium-sized enterprises within 5 days and 100% of all undisputed and valid invoices within 30 days. Government departments are required to report their performance against these payment targets on a quarterly basis on GOV.UK.

Through the Public Contract Regulations 2015, 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. Since 1 September 2019, suppliers risk being excluded from winning large government contracts if they cannot demonstrate prompt payment.

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