Cabinet Office updates how payment approaches can be taken into account in major Government contracts
PPN 08/21 will come into effect from 1st April 2022.
Government has published a new Public Policy Note to update and replace PPN 07/20, which will come into effect from 1st April 2022.
The new PPN 08/21 sets out how payment approaches can be taken into account in the procurement of major Government contracts above £5 million per annum. This is further to Government’s pledge to use its buying power to ensure contractors comply with the Prompt Payment Code; and that businesses have a healthy cash flow.
The key change to PPN 07/20 is that Government suppliers will have to demonstrate they pay 95% of their invoices within 60 days, which is an increase from the current 85%. Indeed, bidders must demonstrate that they meet the required standard in at least one of the two previous six month periods.
Those who do not meet the required standard, showing that they have effective payment systems in place to ensure the reliability of their supply chains, may be excluded from contracts worth more than £5m per annum.
Suppliers whose performance is between 90% and 95% will need to continue to submit action plans detailing how they will improve their performance to 95%.
The guidance published alongside PPN 08/21 has also reiterated how the Government expects supply chain finance to be treated when being assessed as part of a bid.
You can view the PPN, its supporting documents and the answers to Frequently Asked Questions here.
Latest News from
How the global payments landscape is rapidly evolving20/05/2022 15:20:00
The COVID-19 pandemic accelerated the digitalisation of payments, with consumers shifting from physical cash to digital and contactless payment instruments at a rate unprecedented. This development combined with the continued need to support cash and the surge of digital currencies initiatives has raised questions about the need of a renewed regulatory framework in Europe, and the United Kingdom.
Private networks: a new user guide by techUK19/05/2022 16:25:00
As technology innovation continues to allow the UK to grow its economy, technology trade association techUK recently (17 May 2022) released a new guide outlining the benefits of private networks adoption, ‘Private networks: a user guide by techUK’.
techUK at London Tech Week 202219/05/2022 09:20:00
techUK is proud to once again be a strategic partner of London Tech Week.
Private network ecosystem: Management model - A new techUK guide17/05/2022 12:05:00
techUK's Advanced Communications Services Working Group has created a new guide for organisations considering building out services using 5G networking technology entitled 'Private network ecosystem: Management model'.
techUK's Future Private Networks Week 202216/05/2022 16:25:00
Welcome to techUK's Future Private Networks campaign week 2022, in which we celebrate the technology, innovation and expertise in the UK’s private networks sector, as we look to accelerate adoption, increase demand and help the UK realise the benefits of advanced connectivity for enterprise and the public sector.
Crafting a Strategy: UK International Digital Policy Cooperation Report16/05/2022 11:25:00
Since leaving the European Union, the UK has begun to establish itself as a leader in digital trade.
Incentivising businesses to invest in training highlighted in 2022 Queen’s Speech13/05/2022 16:25:00
techUK analyses the state opening of Parliament which includes reforms to the skills system.
The Government sets out a new legislative agenda with important implications for the UK tech sector13/05/2022 11:25:00
Following the State Opening of Parliament the Government has set out a fresh legislative agenda including new ambitious Bills for the tech sector. Read our summary below.