Issue - meetings

Supplier Payment Terms

Meeting: 27/10/2020 - Cabinet (Item 56)

56 Supplier Payment Terms pdf icon PDF 216 KB

To consider the report of the Portfolio Holder for Corporate Delivery/Director of Resources

Minutes:

The Cabinet considered a report of the Director of Resources, which provided Members with an update on the current supplier payment terms and which sought their approval for the return to standard supplier payment terms of 30 days, alongside the resumption of the Priority Account Service, early payment programme.

 

Alternatives considered:

To not revert to the standard supplier payment terms to 30 days would potentially compromise the viability of the Early Payment Scheme. This option would result in a budget pressure of approximately £120,000 as a saving that has already been included within the 2020/2021 financial year. £80,000 which relates to the loss of income from April to 31st October 2020, has been included within the Covid-19 cost pressures and was reported to Cabinet in the P4 Finance Update on 29th September 2020.

 

Resolved:

The Cabinet approves the resumption of standard supplier payment terms of 30 days, from 1st November 2020.

 

Reason for the resolution:

Following a Cabinet Office Procurement Policy Note (PPN) in March 2020, an urgent Chief Executive decision was made to pay all Suppliers as quickly as practicably possible, on immediate payment terms. This was in direct response to the COVID-19 outbreak, with the intention of ensuring service continuity and supporting Suppliers to the Council.

 

The initial PPN covered the period up to 30th June 2020, followed by a further PPN, extending the period until 31st October 2020. It was now necessary to revert to standard supplier payment terms of 30 days from 1st November 2020.

Eligible for Call-in: Yes.