Cabinet Office announces plan to tackle late payments with procurement rules tweak

By Daniel Gayne2025-06-27T11:58:00

Businesses bidding for public contracts must prove they pay their suppliers on time

The government is proposing to amend the Procurement Act to require contracting authorities to exclude late payers from bidding for major contracts.

Under plans set out in an open consultation published on Thursday by the Cabinet Office, suppliers would be required to demonstrate that they pay invoices within an average of 60 days in order to bid on public contracts worth more than £5m per year.

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