Whitehall 'fails to deliver on invoices pledge'

A study by commercial credit reference agency Graydon of 320 firms dealing with the Government found that 98 per cent were still not being paid within the 10 days pledged by the Business Secretary more than a year ago.

Almost two thirds of the small-to-medium sized firms which supplied government departments had to wait more than the standard trade invoice timescale of 30 days, a higher number than a year ago, said the report.

Graydon UK managing director Martin Williams said: "Unfortunately it's now apparent that ministerial willpower hasn't been enough to inject more speed into the machinery of the public sector.

"It's difficult to gauge how damaging the impact of this failure has been in terms of exacerbating the cash flow problems faced by small firms.

"What's certain, however, is that the public sector needs to set a better example.

"Government agencies may point to issues securing payments from their own customers as a reason for these continued delays. This may be a valid concern in many cases but in truth this merely serves to underline the need for these public sector bodies to become more efficient at collecting monies owed and managing their debtors efficiently."