An updated Procurement Policy Note has been published by the UK Government Cabinet Office within the last week. This confirms that the prompt payment threshold is going to be increased for suppliers bidding for Government contracts above £5 million per annum. From 1 April 2021, suppliers will be required to show that they pay 85% of invoices within 60 days and have an action plan in place to achieve the required standard of 95% in future, otherwise they risk being prevented from bidding. Currently a company can still pass if they pay 75% of invoices within 60 days and submit an action plan, and the Cabinet Office has been clear that it is taking a phased approach and that the threshold “will be ratcheted up over time until it reaches 95%”
Source: Build UK/UK Government