The Federation of Independent Retailers (NFRN) has welcomed the proposal to give more powers to the Small Business Commissioner to help small firms with late payments.
Responding to a consultation launched by the government, the trade body said this kind of support is important to small businesses.
“Overall we welcome the suggestion that the Small Business Commissioner be given teeth to actually enforce the decisions he comes to in issues relating to late payments,” Stuart Reddish, NFRN national president, said.
“It is important that small businesses have this kind of support, particularly when dealing with big business, and it is good that the government is moving in this direction.”
Launched in October, the consultation proposes new powers including ordering businesses to pay in good time and issuing fines if they do not, ordering companies to share information on payment practices and the power to launch investigations.
According to Pay UK estimates, £23.4 billion worth of late payments is currently owed to small businesses in the UK. The consultation also seeks views on extending the Commissioner’s scope to consider complaints by small businesses about other small businesses.
“Late payments are a terrible burden for small businesses, not only disrupting their cash flow but posing a threat to their survival in many cases,” Small Business Minister Paul Scully has said on launching the consultation.
“We are committed to tackling this problem, supporting small businesses at this critical time for the British economy by helping them to secure payment on time.”
The consultation closes on 24 December.
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