Small Businesses: Billing:Written question - 136505


Named Day

'Named day' questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.

Asked on: 18 April 2018
Department for Business, Energy and Industrial Strategy
Small Businesses: Billing
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will take steps to encourage the payment of invoices by large firms to small businesses within 30 days; and if he will make a statement.
Answered by: Andrew Griffiths
Answered on: 23 April 2018

The government is clear that large companies should lead by example in paying their suppliers promptly and fairly, and believes that 60 days is the maximum acceptable payment terms in the vast majority of cases. The Prompt Payment Code sets best practice in payment standards and commits signatories to undertake to pay suppliers within a maximum of 60 days, in all but exceptional circumstances, and to work towards adopting 30 days as the norm.

Government is supporting businesses, particularly small businesses, throughout the supply chain - the Public Contracts Regulations ensure public sector buyers require 30-day payment terms be passed down the supply chain. At Spring Statement, the Chancellor announced that BEIS will launch a call for evidence to assess what further steps and intervention may be needed to ensure small businesses are not subject to unfair payment practices.

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