Late payers are banned
Public contract blacklist drawn up
FIRMS who pay suppliers late will be blocked from taking on public sector contracts, the Government have vowed.
Ministers will today announce a new initiative to use the Government’s spending clout to ensure more companies settle their debts on time.
From autumn next year, all firms bidding for contracts worth at least £5million a year will need to show they pay 95 per cent of invoices to their suppliers within 60 days. Failure to do so could mean they are barred from the process.
The move comes weeks after ministers said the Government themselves would pay 90 per cent of undisputed invoices from small and medium-sized businesses within five days.
It coincided with proposals to force big firms to appoint a board member to ensure their small suppliers are paid promptly.
Today’s announcement comes ahead of Small Business Saturday this weekend when people will be encouraged to spend money at local shops and back firms in their communities. Cabinet Office Minister Oliver Dowden said: “Companies providing crucial services to the public sector, like supporting prisons and delivering road infrastructure projects, must be paid on time. “From next year, Government contractors are late with supplier payments, they could stop winning public contracts altogether – until they clean up their act.” Martin McTague, policy and advocacy chairman for the Federation of Small Businesses, said: “Cracking down on big businesses supplying to Government, and not paying on time, is a win for small businesses, taxpayers, the wider economy and public services.”
of invoices must be paid within 60 days
if COMPETITION watchdogs could block credit checking giants Experian’s takeover of Clearscore. The Competition and Markets Authority said the proposed deal would stifle innovation and lead to people paying more for credit cards and loans.
Experian said they were “disappointed”. The CMA are looking for comments by December 19 and will make a final decision by March 11 next year.