Cabinet Office written question – answered on 14th March 2018.

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Photo of John Mann John Mann Chair, Treasury Sub-Committee

To ask the Minister for the Cabinet Office, what steps the Government took before Carillion was liquidated to ensure that SMEs would be paid by Carillion.

Photo of Oliver Dowden Oliver Dowden The Parliamentary Secretary, Cabinet Office

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. Public sector buyers must also publish annually on their payment performance.

We strongly encourage businesses to report poor payment practice and instances of late payment, including late payment through the supply chain, in public sector contracts to its Mystery Shopper service. Mystery Shopper will then investigate.

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