Question to the Cabinet Office:

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.

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.