New Measures to Ensure Small Businesses Get Paid on Time
A new government measure has been released to target the late payments of large businesses to smaller businesses.
The proposal by the Department for Business, Energy & Industrial Strategy, Small Business Commissioner, includes the following points:
- The government will consult on increasing the powers of the Small Business Commissioner, with a view to target larger companies who fail to make payments on time. The powers could include the ability to impose fines and to request information on payment terms and conditions where necessary. New binding payment plans could also be enforced where the current practice is deemed as unfair for small businesses.
- Company boards are to be held accountable within their companies for payment practices to small businesses. This will increase accountability and encourage fair practice and transparency.
- A new Business Basic Fund competition of up to £1 million – which aims to encourage small businesses to embrace new technology, to improve productivity and management practices.
- The amount owed in late payments has halved over the last five years.
Small Business Minister, Kelly Tolhurst, said:
Small businesses are the backbone of our economy and, through our modern Industrial Strategy, we want to ensure the UK is the best place to start and grow a business. These measures will ensure that small businesses are given the support they need and ensure that they get paid quickly – ending the unacceptable culture of late payment.
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