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Government Suppliers and Subcontractors: Payment

Cabinet Office – in the House of Commons on 27th February 2020.

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Photo of Rob Roberts Rob Roberts Conservative, Delyn

What steps he is taking to ensure that Government suppliers and subcontractors are paid on time.

Photo of Penny Mordaunt Penny Mordaunt Paymaster General

The Government have a commitment to pay 90% of valid and undisputed invoices from small and medium-sized enterprises within five days. Departments also have a non-executive director responsible for prompt payment, and suppliers now risk being excluded from winning large Government contracts if they cannot demonstrate prompt payment in their supply chain.

Photo of Rob Roberts Rob Roberts Conservative, Delyn

I thank the Paymaster General for that answer. Following on from her responses to my hon. Friends’ questions earlier regarding small and medium-sized businesses, the cash flow of those businesses is the most important factor in their survival, so what assurances can my right hon. Friend give that the timely payment commitment will always extend further down the chain so that small and medium-sized businesses in my Delyn constituency are able to plan ahead with confidence?

Photo of Penny Mordaunt Penny Mordaunt Paymaster General

I can give my hon. Friend those assurances: we do take those things into account. As far as the Cabinet Office is concerned—of course, it is similar for many other Departments across Government —we are meeting the five-day payment target, and in 99% of cases all invoices are paid within 30 days.