Home Business News Government ‘must push through late payment reforms’

Government ‘must push through late payment reforms’

by LLB Politics Reporter
31st May 19 9:27 am

The Federation of Small Businesses (FSB) has called on Theresa May to push through the reforms package in her final days, to tackle the problem of late payments.

The concerns from the FSB comes after Rolls-Royce, Balfour Beatty and Persimmon were named and shamed as they failed to meet toughened payment guidelines.

The firms were amongst 20 firms that were either suspended or removed from the Prompt Payment Code (PPC).

Companies who sign up to the PPC must pay 95% of all supplier invoices within 60 days.

The FSB said, “50,000 small firms a year are forced to close their doors” as a result of poor payment practices.

Twining the tea business, GKN the manufacturer and delivery firm DHL were named in the clampdown.

The FSB said that further reforms are needed, and the government has made “progress” with the reforms already untaken.

The government promised in their spring statement payment reforms including making the audit committee of every large business responsible for its payment practices.

Mike Cherry, national chairman of the FSB said, “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 gto secure.

“We are fast running out of time for the outgoing administration to secure this as their lasting and transformational small business legacy.

“What these firms need is one more push to get the changes that will turn the tide against this unjust and unfair behaviour.”

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