Forum suggests measures at Parliamentary late payment session

During a parliamentary session last month looking at late payment, the Forum of Private Business (FPB) told a cross-party group of MPs that the issue remains a significant concern for UK SMEs.

Giving evidence at the’s inquiry, chaired by Labour’s Debbie Abrahams, the not-for-profit employer support organisation said over a million SMEs had experienced problems with late and slow payment, and urged MPs to look at new ways to tackle the problem.  ekonglong traditional sofa

Among the proposals suggested by the forum was for all prime contractors bidding on Government contracts to sign the ICM’s Prompt Payment Code (PPC), for Government to provide legal clarity on how the FPB can use a new power (EU Directive on prompt payment) to represent its members on the issue, and for wider adoption of e-invoicing in the public sector.

It also suggested that any public organisation dispensing taxpayers’ cash to small business – including the likes of police forces and NHS hospital trusts – should also sign the PPC.

The forum’s head of policy, Alexander Jackman, says: “Late payment is having a significant impact on business development, productivity and growth. Research has suggested 35% of small businesses have seen a reduction in profit and 16% have seen a noticeable reduction in turnover as a response to late payment or bad debts.