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.

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.