FSB calls on government for late payments package

(2 minutes to read)

80% of the UK’s small business community is affected by poor payment practice. The majority of cases are carried out by big businesses towards their smaller suppliers, with 50,000 small firms a year forced to close down because of it.

The Federation of Small Businesses is urgently calling for the late payments reforms package to be announced in the year’s Spring Statement.

As businesses face up to extended political uncertainty surrounding the Brexit crisis, coupled with the prospect of a new Prime Minister and Cabinet, the FSB wants the outgoing government to deliver on the promise made to FSB and the small business community, and to do so in June.

FSB believes that it would be a ‘major plank’ of this government’s legacy to end the UK’s business culture where paying small businesses late is acceptable.

The FSB believes that reforms already undertaken by this and the previous government have made some progress, but delivering the package of reforms now promised – including making the Audit Committee of every large business responsibility for its payment practices, and reporting back in its annual report, and strengthening the Small Business Commissioner and Prompt Payment Code, is critical.

National Chairman of the Federation of Small Businesses (FSB) Mike Cherry, commented, “As Theresa May’s time in office draws to a close, we are now at crunch time for the promised late payments package we have worked hard with the Government to secure. We are fast running out of time for the outgoing administration to secure this as their lasting and transformational small business legacy.

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“This can be achieved by publishing its late payments reform package as one of its final acts. Under this administration, small firms have seen some positive reforms come into force to ease the burden of poor payment practices. Many, however, are still just about managing to cope with the persistent and debilitating impact bullying and being paid late has on them and their staff.

“What these firms need is one more push to get the changes that will turn the tide against this unjust and unfair behaviour. We cannot afford to have these crucial reforms lost at the last fence, as attention turns to the leadership contest, a new administration and the upcoming Brexit deadline.

“It is crunch time – small businesses want these reforms in place before the Prime Minister leaves Number 10. Taking real action to tackle poor payment practices can be the legacy that the Prime Minister and her Government leave office with.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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