Govt launches new clampdown
on late payers
4th December 2018

Major contractors who don’t pay their suppliers on time could be barred from winning all public work, according to new prompt payment rules unveiled by the Government this week.

The initiative, due to come into force next autumn, will ensure the government only does business with companies who pay their suppliers on time, many of which are small businesses.

Cabinet Office Minister, Oliver Dowden said: “Paying invoices promptly is vital in providing healthy cash flow, particularly for smaller businesses who are the backbone of the UK economy, to help them survive and thrive.

“From next year, if government contractors are late with supplier payments, they could stop winning public contracts altogether - until they clean up their act.

Martin McTague, Policy and Advocacy Chairman for the Federation of Small Businesses said: “Cracking down on big businesses supplying to Government, and not paying on time, is a win for small businesses, tax payers, the wider economy and public services. Measures to open up public procurement give tax payers and our public services access to the innovation and value small firms bring, as well as helping our economy.

We have been pushing hard for this reform and it is good to know that the Government is listening. We will continue to work with the Government on this and further measures to drive out late payment from Government supply chains once and for all.”