The team at Commercial Domestic Investigations always have their finger on the pulse of UK SME news, and especially anything that affects cash flow.
This week we discuss the figures from the Cabinet Office, which reveal that the government have exceeded a target to spent a quarter of Whitehall’s procurement budget with small and medium sized businesses by 2015.
In the last financial year, central government has allocated 27.1 per cent of its procurement budget to SMEs, amounting to a total of £12.1bn spent and surpassing the 25 per cent promised in the last parliament.
The announcement was made by his Rt Hon Matt Hancock MP from the Cabinet Office, who also revealed this has now been increased to 33% by 2020.
The £12.1bn spending with small businesses showed that the government wanted to “turbo-charge” its ambitions for working with small businesses, Hancock said.
He wants as many SMEs as possible competing for and winning public sector contracts: “I want to turbo-charge our ambitions for small business and have £1 in every £3 of government spend going to small businesses by 2020. I look forward to seeing even more of our big suppliers sign up to the prompt payment code, and help the small businesses in their supply chain.”
Prompt Payment Code
The Prompt Payment Code, currently signed by 17 of the government’s 33 ‘strategic suppliers’, is a pledge on behalf of signatories to pay their suppliers promptly.
The code sets standards for payment practices and best practice and is administered by the Chartered Institute of Credit Management. This makes it easier for small firms, whose cash flow is critical to business, to work with bigger suppliers.
It promotes 30-day payment terms as standard, with 60 days allowed as an absolute maximum.
About Commercial Domestic Investigations
Commercial Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
Commercial Domestic Investigations have recently featured in the press in The Guardian. To keep up to date with the latest debt collection news make sure to follow Commercial Domestic Investigations on Twitter and LinkedIn.
We now boast a national client base in excess of 30,000 companies. Commercial Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plus. Please contact us on 08444 159200 for more information.