Nicholas Soames: To ask the Minister for the Cabinet Office what average time was taken by all Government departments to pay the invoices of their small business suppliers; and if he will make a statement. [93414]
The Rt Hon Francis Maude MP; Minister for the Cabinet Office: This information is not held centrally.
Nevertheless, the Government recognise that being paid promptly for work done is vital for suppliers to enable them to manage their cash flow and reduce time wasted on chasing invoices. We are determined to do everything we can to help business manage cash flow and to transform the culture of late payment.
The Government's policy is to pay 80% of undisputed invoices within five days and to pass 30 day payment terms down supply chains by including requirements for suppliers to do so in contracts. We expect our suppliers to follow our example on prompt payment and pay their sub-contractors within the 30 day limit.