The Government’s Payment and Cash Flow Review report confirms that the Reporting on Payment Practices and Performance Regulations will be extended by a further seven years, in recognition of the way in which they have improved payment culture and transparency.

There will be new metrics introduced on disputed invoices, the value of invoices not paid within terms, and retentions, as well as more active enforcement of the reporting requirements by the Department for Business and Trade.

The Cabinet Office has also published PPN 10/23 which requires companies bidding for Government contracts over £5 million from 1 April 2024 to demonstrate that they pay invoices within an average of 55 days, otherwise they will be excluded from bidding. The new requirement, which will reduce to 45 days from April 2025 and 30 days in subsequent years, is in addition to the existing requirement for companies to pay at least 95% of invoices within 60 days (or 90% where they have an ‘action plan’ in place).