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Lucy Powell MP, Labour’s Shadow Minister for the Cabinet Office, commenting on reports that Capita is facing an investigation into allegations that it used a major government contract to short-change small companies, resulting in some going out of business said: |
"Ministers have questions to answer about when they knew about these dodgy practices from Capita. Ministers lauded this contract as a boon for small business yet instead it has led to some going bust due to late payments and Departments being charged more for services than they were under previous arrangements.
“David Cameron promised the Government would pay small business suppliers within five days yet his failure to act continues to damage our economy.
“Labour will shine a light on government outsourcing by ensuring firms delivering Government contracts comply with freedom of information requests. We will also back small businesses struggling under the Tories by cutting and then freezing business rates.
And we have put forward a clear plan to tackle the scandal of late payment, ensuring late payers automatically pay interest to their suppliers, and outlawing bad payment practices such as firms being asked to pay for the right to be a supplier.”
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