The Small Business Minister, Kelly Tolhurst, last month launched a call for evidence on late payment practice, which is due to close on November 29, 2018. According to findings, nearly a quarter of UK businesses have reported that late payments are a threat to their survival. Tackling them represents a huge opportunity for economic growth, with research from the Federation of Small Businesses suggesting that it could add £2.5 billion to the UK economy, and keep an extra 50,000 businesses open each year.
The new proposals include:
• The call for evidence to consider the best way company boards can put in place responsible payment practices throughout their supply chain
• Promoting innovative technologies, such as the latest accounting software, to help small firms manage their payments processes, and empowering trade bodies to highlight the best and worst practices in payment behaviour. Build UK is already publishing payment practice information on main contractors and will be adding large specialist contractors in a bid to encourage the industry to review and reform payment practices.
Source: RCI magazine