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“Freeze late payers out of public contracts” – letter to Prisk

A group of organisations are sending a letter to Enterprise Minister Mark Prisk to demand a “plan of action to encourage prompt payment”.

The merry band includes the Forum of Private Business, the Institute of Chartered Accountants in England and Wales, Lloyds and the National Farmers Union.

The group will say the public procurement process should be used to “promote best practice”, with evidence of prompt payment assessed via pre-qualifying questionnaires, reports the Telegraph.

Additionally, businesses with more than 250 employees should be barred from public contracts if they are “notoriously bad payers”, and firms should be stopped from imposing retrospective changes to payment terms and conditions that aren’t agreed by both parties.

“Late payment and enforced retrospective changes to payment terms and conditions force firms out of business, plain and simple,” says Phil Orford of the FPB.

“There is a culture of fear when it comes to naming and shaming large late payers. It’s time to tackle the problem once and for all so that prompt payment becomes the norm.”


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