Manufacturing Industries: Contracts for Services

Department for Business, Energy and Industrial Strategy written question – answered on 23rd June 2020.

Alert me about debates like this

Photo of Rushanara Ali Rushanara Ali Labour, Bethnal Green and Bow

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate his Department has made of the number of companies that have not (a) complied with manufacturing contracts and (b) honoured the cost of orders made as a result of the covid-19 outbreak.

Photo of Nadhim Zahawi Nadhim Zahawi Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The Department does not have assessments of the number of companies that have not (a) complied with manufacturing contracts and (b) honoured the cost of orders made as a result of the Covid-19 outbreak. However, the Government encourages all companies to honour their contracts and orders where possible.

We are seeing examples of both good and bad payment practice from large businesses as a result of Covid-19. The Small Business Commissioner has written to individual businesses who are protecting themselves by holding back payments to suppliers and has urged them to rethink their strategy to ensure their small business suppliers can survive the negative impacts of Covid-19. Conversely, the Small Business Commissioner has written to thank those businesses showing leadership by ensuring their smallest suppliers are paid more quickly, recognising the positive steps that they are taking.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.