Question to the Cabinet Office:
To ask Her Majesty's Government whether it remains their policy that any supplier who bids for a government contract worth more than £5 million per annum must demonstrate that they pay 95 per cent of invoices within 60 days or be excluded from delivering the contract; and if so, how many such bidders have been excluded from delivering contracts on those grounds.
From September 2019, any supplier who bids for a Government contract above £5m per annum will be expected to pay 95% of invoices in 60 days across all their business. Any supplier who is unable to demonstrate a fair and responsible approach to the payment of their supply chain may be excluded from bidding.
A small number of suppliers have been excluded to date for not achieving the expected standards. However, our aim is to drive improvement in performance and ensure subcontractors are paid promptly.