Question

To ask the Secretary of State for Business, Innovation and Skills, what requirements his Department and its agencies and non-departmental public bodies place on suppliers in respect of their payment terms to subcontractors as part of their standard terms and conditions.

The Department’s standard terms and conditions requires that where a contactor/supplier uses a sub-contractor a provision is included which requires the contractor/supplier to pay for any goods or services within 30 days of the contractor/supplier receiving a correct invoice from the sub-contractor.

The Department fully supports the need for its suppliers to pay sub-contractors promptly and has been working closely with the Cabinet Office to strengthen the public procurement regulations to ensure that suppliers do pay promptly and report accordingly.

Departmental Agencies have been asked to respond separately and information on non-departmental public bodies is not held centrally. Their responses are attached.