Home Business NewsBusiness Crack down on suppliers who don’t pay on time

Crack down on suppliers who don’t pay on time

by LLB Reporter
29th Nov 18 9:31 am

A new prompt payment initiative to ensure all Government suppliers and subcontractors benefit from being paid on time, is being announced today.

For the first time, failure of companies to demonstrate prompt payment to their suppliers could result in them being prevented from winning government contracts.

Coming into force in Autumn 2019, this will ensure the government only does business with companies who pay their suppliers on time, many of which are small businesses. The move will promote a healthy and diverse marketplace of companies providing public services.

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.

“Paying invoices promptly is vital in providing healthy cash flow, particularly for smaller businesses who are the backbone of the UK economy, to help them survive and thrive.

“From next year, if government contractors are late with supplier payments, they could stop winning public contracts altogether – until they clean up their act.”

Leave a Commment

You may also like

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]