New payment practice policy launches, reflecting CBI members’ feedback

An update to central government procurement policy came into force meaning that departments must now consider how good a company is at paying other businesses. This assessment will decide whether businesses can bid for public sector contracts.

The CBI was involved during the consultation process of the new procurement policy, and has been working closely with Cabinet Office and the Department of Business, Energy and Industrial Strategy since the proposals were announced last November.

Our lobbying efforts focused on explaining why the different dynamics of UK sectors would impact how quickly commercial practices can be overhauled in a sustainable way, and the pace at which improvements would be seen in payment practice data.

This forms an integral part of our campaign to make public procurement work for both citizens and business.

Following engagement with the CBI and other stakeholders, the Cabinet Office revised its policy before launching it so that businesses had greater scope to demonstrate how they were improving their payment practices towards a 95% in 60 day target, if they were not already meeting it.

You can read more about the new guidelines here.