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IoD Calls Time on Late Paying Government Departments
Date Added: Fri June 26 2009
Revealing previously unseen information about government payment performance, the Institute of Directors (IoD) heavily criticised Whitehall delivery against a Prime Ministerial commitment to improve cash flow to smaller businesses.

Using data gathered through Freedom of Information requests, the IoD have discovered that the:
- Department for Communities and Local Government and Government Equalities Office refused to share information about their progress against the Prime Minister’s 10 Day payment pledge, because they didn’t hold the information.
- Home Office and the Wales Office were the only two departments to ensure 10 day payments to (specifically) small and medium-sized enterprises, as per the Prime Minister’s instructions.
- 25 other Departments were found to be paying within 10 days, but to all sizes of businesses, including multi-nationals, not just the small and medium-sized enterprises the Prime Minister requested. It is possible that a higher than average number of SMEs could be found amongst those businesses receiving payment outside the 10 day target.
- The Cabinet Office, Department for Transport and Department for International Development prop up the Whitehall leader-board for 10 day payments (for businesses of all sizes); with respective 10 day payments rates of 61%, 65% and 66%.

Commenting on the findings, IoD Director General, Miles Templeman said:“Progress has been too slow. The Government must now press departments harder than ever to deliver on the 10 day target and to communicate progress by making information available via departmental websites. Ministers will also need to decide quickly whether larger companies really need the same treatment as SMEs when it comes to payment.”