Business: Billing

Cabinet Office written question – answered on 10th March 2020.

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Photo of Lord Mendelsohn Lord Mendelsohn Labour

To ask Her Majesty's Government whether it remains their policy that any supplier who bids for a government contract worth more than £5 million per annum must demonstrate that they pay 95 per cent of invoices within 60 days or be excluded from delivering the contract; and if so, how many such bidders have been excluded from delivering contracts on those grounds.

Photo of Lord True Lord True Chair, Intergenerational Fairness and Provision Committee, Minister of State (Cabinet Office), Chair, Intergenerational Fairness and Provision Committee

From September 2019, 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.

A small number of suppliers have been excluded to date for not achieving the expected standards. However, our aim is to drive improvement in performance and ensure subcontractors are paid promptly.

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