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Government Departments: Business

Cabinet Office written question – answered on 16th June 2011.

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Photo of David Evennett David Evennett Conservative, Bexleyheath and Crayford

To ask the Minister for the Cabinet Office what steps he is taking to ensure that businesses undertaking work for Government Departments and agencies are paid promptly.

Photo of Francis Maude Francis Maude The Paymaster General and Minister for the Cabinet Office

The Government are determined to do everything they can to help business manage cash flow and to transform the culture of late payment. We have a target for central Government Departments to pay 80% of valid invoices within five working days of receipt.

Since 25 March 2010, it has been mandatory for all government departments, agencies, non-departmental public bodies (NDPBs) (and the bodies over which they have direct control) to include a contract condition requiring their contractors to pay their sub-contractors within 30 days.

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