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Government Departments: Billing

Cabinet Office written question – answered on 3rd September 2019.

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Photo of John Hayes John Hayes Conservative, South Holland and The Deepings

To ask the Minister for the Cabinet Office, what steps he is taking to ensure Government (a) suppliers and (b) subcontractors are paid on time.

Photo of Oliver Dowden Oliver Dowden Paymaster General (HM Treasury), Minister of State (Cabinet Office)

We are committed to paying 90% of undisputed and valid invoices from SMEs within 5 days and 100% of all undisputed and valid invoices within 30 days. Government departments must report their payment performance on a quarterly basis on GOV.UK.

Through the Public Contracts Regulations 2015, public sector buyers must include 30-day payment terms in public sector contracts; and require that this payment term be passed down the supply chain. Where this is not happening, businesses are encouraged to raise this with the Public Procurement Review Service in the Cabinet Office, who will investigate.

From September, any supplier who bids for a Government contract above £5m per annum will be expected to pay 95% of invoices in 60 days across all their business. Any supplier who is unable to demonstrate a fair and responsible approach to the payment of their supply chain may be excluded from bidding.

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