The Ministry of Defence (MoD) has reaffirmed its commitment to timely supplier payments and procurement efficiency, exceeding its own targets for small and medium-sized enterprise (SME) invoice processing, according to recent parliamentary disclosures.
Surpassing Payment Targets
During a Parliamentary session, James Cartlidge, Conservative MP for South Suffolk, raised concerns about MoD invoice processing times, supply chain efficiency, and SME procurement spending.
In response, Minister of State for Defence Maria Eagle highlighted the department’s impressive track record in paying SME invoices:
“We are exceeding this target. In the last quarter of this financial year, over 95% of invoices have been paid within this timescale.”
The MoD aims to pay 90% of undisputed and valid SME invoices within five days and 100% within 30 days. Eagle directed those seeking further details to the MoD’s supplier payment performance reports available on the government website.
Boosting Procurement Efficiency
Eagle outlined ongoing reforms under the Defence Industrial Strategy, which focus on:
- Enhancing MoD acquisition processes to improve efficiency and cut waste.
- Ensuring compliance with international trade agreements.
- Strengthening the Defence Supply Chain Capability Programme to bolster the UK’s defence industrial sector and promote national security and economic growth.
SME Procurement Spending Sees a Dip
Despite the MoD’s commitment to SMEs, figures show a decline in procurement spending allocated to smaller businesses:
- 2022-23: 5% (£1.4 billion) of MoD procurement spend went to SMEs.
- 2023-24: 4% (£1.3 billion), marking a decrease in SME participation.
- 2024-25: Figures set to be published in November 2025.
Despite the drop, the MoD insists that its procurement strategy remains focused on engaging SMEs, particularly in high-value defence contracts.
