Chancellor Alistair Darling offered a dual boost for small construction firms in today’s Budget with guarantees of more work and prompter payment.
Mr Darling said that all central government departments would aim to pay 80 per cent of undisputed invoices within five days.
He also said departments would be set targets to increase by 15 per cent the proportion of their procurement spending going to small and medium sized firms. This could mean an extra £15 billion for these firms, according to the Government.
The Budget report said the Government would explore the possibility of moving to immediate payment through electronic invoicing for all suppliers.
The Government will encourage all NHS Trusts and local authorities to publish their prompt payment performance data on data.gov.uk.
All central government departments will be required to include a clause in their contracts with suppliers to ensure that subcontractors are paid within 30 days.