Late Payments - Statement

Part of the debate – in the House of Lords at 6:05 pm on 19th June 2019.

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Photo of Viscount Younger of Leckie Viscount Younger of Leckie Lord in Waiting (HM Household) (Whip) 6:05 pm, 19th June 2019

Yes, the noble Baroness can be forgiven for thinking that. I hope I can give a succinct answer, again differentiating between private and public enterprise. Just to clarify, the Prompt Payment Code—which is voluntary, as I have mentioned—is administered by the CICM. Signatories to the code sign up to pay 95% of invoices in 60 days, with an ambition to move towards 30-day payment terms. The code currently has over 2,000 signatories. However, on the public side the payment terms are 30 days. It could well be the case that, depending on the contractual agreement between the two companies, a different arrangement can be made. If both sides are happy with that separate arrangement, that is fine, but I am talking about the default—we lay out the framework and that gives the default. I hope that gives the noble Baroness a basic answer to the question.