Progress on tackling late payers in the public sector
Small Business Minister Margot James recently wrote to signatories of the Prompt Payment Code to highlight progress in tackling late payment. The Minister’s letter suggested that payment practices had been improved by:
• Central Government departments publishing their quarterly payment results which show that 80% of invoices are paid within 5 days
• Legislation which requires 30 day payment terms to be passed down the supply chain in all public sector projects
• The PPC Board assessing the criteria for ‘exceptional circumstances’ where payment terms of over 60 days are acceptable.
The letter also confirmed that the new Duty to Report on payment practices for large companies will come into effect from 6 April 2017.