First Minister Alex Salmond says supply chain will be paid within 30 days on all government projects

The Scottish Government has pledged to pay all sub-contractors within 30 days on government jobs.

Companies with contracts with government are already guaranteed to be paid within 30 days.

Under the new provision the supply chain would be paid within the same time period.

Announcing the move last week, First Minister Alex Salmond said: “We have been talking to small companies and with the main business organisations and they have serious and understandable concerns over late payment of invoices.”

The Federation of Small Businesses welcomed the news. It said: “Small firms working on public projects deserve to get paid as promptly as their larger counterparts.”