Late payers frozen out of Government contracts

Late-payers to be frozen out of public sector contractsAs of September, firms that do not pay 95% of subcontractors within 60 days risk being frozen out of public sector procurement. The new rules force companies to report their payment data every six months to a national database overseen by the business department, with the measures part of efforts to tackle late payments to small businesses. The Federation of Small Businesses (FSB) estimates that problems linked to delayed payments see 50,000 companies shut every year. FSB chairman Mike Cherry comments: “The crackdown on big business suppliers who don't pay promptly is welcome; those who fail to comply ... should be in no doubt of the consequences." Martin Traynor, the small business crown representative, said those who fail to pay up in a timely fashion may see themselves taken out of the running for public sector contracts. “If you can’t satisfy the people you are procuring, then you won’t be bidding for it,” he said.