Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, if will make it his policy to apply a minimum liquidity threshold to companies applying to tender for Government contracts.

The Sourcing Playbook includes a specific guidance note on “Assessing and monitoring the economic and financial standing of suppliers”, which provides advice on effective evaluation and monitoring both pre and post procurement and is relevant to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies.

Assessing and monitoring the economic and financial standing of suppliers is about understanding the financial capacity of suppliers to perform a contract in order to safeguard the delivery of public services.

The guidance states that all assessments of bidders’ economic and financial standing should be proportionate, flexible, contract specific and not overly risk averse while ensuring protection of taxpayer value and safety and compliance with relevant procurement law.