Question

To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the (a) number and (b) proportion of UK companies requiring (i) 30 day, (ii) 60 day, (iii) 90 day, (iv) 120 day and (v) greater than 120 day payment terms from their suppliers.

Until now there has been very little transparency on payment terms in the UK. That is why this government is taking action in the Small Business, Enterprise and Employment Bill to require the UK’s largest companies to report on their payment practices – through a tough, new reporting requirement which includes metrics setting out payment performance within 30 and 60 days and beyond.

I also recently announced changes to the Prompt Payment Code to strengthen its impact. The Code will now promote 30 days payment terms as standard practice, and a maximum payment terms on 60 days.