UNDER EMBARGO UNTIL 27 July 2015 13:45
Small Business Commissioner must have clout to tackle late payment, says FSB
The Federation of Small Businesses sees today’s Government proposal for a Small Business Commissioner to help tackle late payment as a step in the right direction. It is good to see the Government taking action so soon after the election and in line with its manifesto promise.
John Allan, National Chairman for the Federation of Small Businesses, said:
“We are encouraged by the Government’s consultation process which will include businesses of all sizes. But it’s important to ensure that the new Commissioner has the confidence of the entire business community, a clear focus on tackling supply chain bullying, and sufficient powers to intervene and resolve late-payment disputes in a timely and effective way. The Commissioner will have a unique overview of patterns of bad practice in late payment culture and should have the ability to refer these to the Competition and Markets Authority if those practices are considered harmful to the working of the market.
“Recent FSB research found that only one in five (21%) of our members are confident the current Prompt Payment code will be enough to address the UK’s poor payment culture. In addition, the EU Late Payment Directive from March 2013 is simply being ignored by many large and multi-national companies to the detriment of small businesses and the sustainability of their supply chain.
“Late payment culture in a company is set at board level. It’s something that CEOs and board members in big businesses must take responsibility for and put at the top of their agendas. Big businesses must respect the supply chain and stop using smaller businesses as a credit line by delaying payments and applying bullying tactics.”
Area Administrator - North & Midlands
The Federation of Small Businesses is the UK's largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small firms. Formed in 1974, it now has around 200,000 members across 33 regions and 188 branches.
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