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<p>The Government recognises that the public sector should set a strong example by
paying promptly. Under the prompt payment policy, public sector bodies are required
to include 30-day payment terms in new public sector contracts; and this payment term
must be passed down the supply chain. They are also required to publish annual payment
performance data.</p><p> </p><p>While there is no provision to issue fines or penalty
notices to public sector bodies that do not adhere to the prompt payment policy, we
encourage businesses to report poor payment practice and instances of late payment
in public sector contracts in breach of contract terms, to the Public Procurement
Review Service, who will investigate. The service also undertakes its own proactive
investigations into payment performance.</p><p> </p><p>Following a public consultation,
in November 2018 a new prompt payment initiative was announced to ensure all Government
suppliers and subcontractors benefit from being paid on time. For the first time,
failure of companies to demonstrate prompt payment to their suppliers could result
in them being prevented from winning government contracts. <br></p><p>Coming into
force in September 2019, this will ensure the Government only does business with companies
who pay their suppliers on time, many of which are small businesses. The move will
promote a healthy and diverse marketplace of companies providing public services</p><p>
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