Sunday, July 5, 2020

Government says it’ll take away contracts if suppliers aren’t paid on time

Public sector organisations such as schools, hospitals and government departments have been reminded of the need to pay their suppliers on time and set an example for the private sector.

The government is warning its suppliers that they must pay 95 per cent of their invoices within 60 days, or run the risk of being prevented from securing future government contracts.

To lead by example, the government has said all public sector organisations must pay their suppliers within 30 days.

Minister for Implementation Oliver Dowden said: “We are being very clear with government suppliers that they must pay their supply chain on time or face losing future government contracts. It’s only right that we say to the public sector that they must lead by example and make sure their suppliers are paid on time.”

The government’s Public Procurement Review Service allows suppliers to raise any concerns they have about public sector buying and prompt payment.

Statistics published in the latest PPRSProgress Report show that between April 2018 and April 2019, the team unblocked more than £2.5m in late payments.

The majority of complaints received from suppliers regarding late payment focused on the wider public sector, with 61 coming from this area compared to eight from central government.

To help tackle the issue, the PPRSis working with the public sector to improve its payment rates and is carrying out spot checks to make sure payments are made on time.

The government’s Crown Representative for small businesses, Martin Traynor, said: “Making sure companies in the government supply chain are paid on time is very important – particularly for small businesses.

“The difference between waiting 60 days and having to wait 90 days can be make-or-break for many small companies, so it’s vital that both the private and public sector work better in this area.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Broadmarsh retail partnership enters compulsory liquidation

The partnership redeveloping Nottingham's Broadmarsh shopping centre has been wound up. Petitions have also been presented against related companies and these have also entered compulsory...

Staton Young swoop for ‘The Post House’ in Derby

Staton Young Group has purchased ‘The Post House’ on Victoria Street, Derby for an undisclosed sum through FHP. In a record-breaking deal, Staton Young secured a...

East Midlands businesses’ cash generation worryingly low heading into COVID-19 crisis

East Midlands businesses’ cash generation has stayed worryingly low heading into the cash crunch triggered by the COVID-19 pandemic, shows a new study by...

University of Lincoln research predicts digital future for law firm

Students participating in the University of Lincoln’s Graduate Skills Builder programme have recently submitted a report following a market research project to a regional...

Record year continues at GIC

A Lincolnshire packaging machinery manufacturer’s strong start to 2020 has continued this month, with the company sending a record number of machines out of...

Related news

£500k funding boost for Kegworth village centre

Kegworth village centre is set for a major revamp after £500,000 of funding was secured this week by North West Leicestershire District Council (NWLDC). The...

Broadmarsh retail partnership enters compulsory liquidation

The partnership redeveloping Nottingham's Broadmarsh shopping centre has been wound up. Petitions have also been presented against related companies and these have also entered compulsory...

Staton Young swoop for ‘The Post House’ in Derby

Staton Young Group has purchased ‘The Post House’ on Victoria Street, Derby for an undisclosed sum through FHP. In a record-breaking deal, Staton Young secured a...

East Midlands businesses’ cash generation worryingly low heading into COVID-19 crisis

East Midlands businesses’ cash generation has stayed worryingly low heading into the cash crunch triggered by the COVID-19 pandemic, shows a new study by...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close