Oral Answers to Questions — Cabinet Office – in the House of Commons at 11:30 am on 20 March 2013.
Debbie Abrahams
Labour, Oldham East and Saddleworth
11:30,
20 March 2013
What steps his Department is taking to reduce the level of late payment by public sector contractors to small and medium-sized enterprises.
Chloe Smith
The Parliamentary Secretary, Cabinet Office
As I have noted, Government policy is to pay undisputed invoices within five days and to pass 30-day payment terms down supply chains. The Crown representative team in the Cabinet Office is encouraging prime contractors to do that more quickly on a voluntary basis. We have tasked Departments to manage their contracts to ensure that prime contractors pay sub-contractors within 30 days.
Debbie Abrahams
Labour, Oldham East and Saddleworth
I am glad that the Government are now taking seriously late payments to small and medium-sized enterprises, after I received such a dismal response on the issue in 2011. When are the Government going to ensure that public sector contractors have the need to pay SMEs in their supply chain promptly in their contracts?
Chloe Smith
The Parliamentary Secretary, Cabinet Office
I congratulate the hon. Lady on the award that she has won in connection with her work on this matter. My previous answer covered what the Government are doing. We are extremely keen to see good practice pushed throughout the supply chain. We are ensuring that more business goes to SMEs, which is good for growth. All told, that is a good thing and something of which the Government can be proud.
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