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Government urges all catering buyers to ensure payment of suppliers

25th Mar 2020 - 10:26
Procurement Policy Note Michael Gove cabinet office
All public catering operators who procure food, drink and equipment, and those that contract services, are being urged by Michael Gove, the Minister for the Cabinet Office, to make sure their suppliers are being paid.

In a Procurement Policy Note (PPN), he says: “The current outbreak of COVID-19 is unprecedented and will have a significant impact on businesses of all sizes.

“Many suppliers to public bodies will struggle to meet their contractual obligations and this will put their financial viability, ability to retain staff and their supply chains at risk.

“It is vital that contracting authorities pay all suppliers as quickly as possible to maintain cash flow and protect jobs.”

The aim is to ensure ‘service continuity’ during and after the current coronovirus (COVID-19) outbreak.

Stephen Forster, Chair of LACA, said: “We have been in deep discussion with government departments and have clarified funding arrangements for school caterers with senior government representatives to assure the certainty for our industry and the 100,000 employees who care for children in schools across the UK.

“We have to trust that the government are doing everything they can to protect our industry for a return to normal working after this crisis is resolved.”

Public sector buyers are encouraged in the PPN to identify ‘at risk’ suppliers, pay invoices on receipt, consider payment in advance and look at continuing payment even when product or service delivery is interrupted.

To read the full PPN click on the attachment below:


Written by
David Foad