PM ‘needs to support those crippled by late payments’
BORIS JOHNSON needs to “walk the walk” and back small businesses against the crippling impact of late payments, the small business commissioner has said.
Paul Uppal called on the Prime Minister to cast aside previous negative rhetoric about business and justify his claims through policy that small firms are the “backbone of the British economy”.
Mr Uppal made the appeal as he warned that small firms need greater support from the Government over late and delayed payments.
Business groups have warned of a rise in longer and delayed payments in recent years but Mr Uppal said that pressure from business owners and customers has made it inevitable that the situation will improve.
Both the small business commissioner and the Chartered Institute of Credit Management, which operates the Prompt Payment Code, have increased scrutiny on poor payment practices in recent months.
Firms have been named and shamed by the watchdogs over their failure to meet payment standards and public denouncements of poor behaviour will continue to be more regular, they confirmed.
Big companies such as BT, BAE Systems and Holland & Barrett have been called out over poor payment behaviour by the watchdogs over the past year.
Mr Uppal said: “The issue of late and delayed payment isn’t going away.
“We need to continue to shine a light on this issue but now we have received a great response and people won’t let this issue get forgotten about.
“My message to the Prime Minister is that small businesses have heard themselves be described as the backbone of the economy, so I want him to walk the walk and ensure they are supported.”
Mr Uppal’s message comes amid a review of the future of the Prompt Payment Code, which was launched in 2008 to address the issue of larger firms not paying their bills on time.
Large companies signed up to the Code must promise to pay 95 per cent of their invoices within 60 days.
Institute chairman Philip King said he thinks it is likely that Government will place it under the small business commissioner’s responsibilities at the end of the review.
He said: “The consultation is currently taking place and I think it will work to the benefit of small businesses.”