Responding to the publication of the Government's
Plan for Small and Medium Sized
Businesses, Liz Barclay, IoD Special Advisor for Small
Business and Entrepreneurship and former Small Business
Commissioner, said:
“For far too long many bigger customers have regarded delayed
payments to suppliers as an inevitable part of doing business.
However, payments beyond agreed dates or offering suppliers long
payment terms in contracts comes with a huge negative impact. Not
only do poor payment practices cost the UK economy £11bn a year,
they contribute to the closure of 38 businesses a day, cause
worry for suppliers, take up time on chasing payments and
leave otherwise viable and efficient businesses less productive
than they could be and struggling to manage their cash
flow.
“We are therefore delighted to see that the Government is
committed to putting an end to late and long payments along with
measures to cut administrative costs, modernise the tax and
customs system, unlock access to finance, and boost business
skills, as well as backing the high streets.
“We understand that the various measures outlined in the plan
launched today require consultation responses and subsequent
legislative change, and that there won't be change overnight, but
we're very pleased to see the Government clearly stating its
intent. No one can doubt the direction of travel. We need fairer
payments, better support and modern systems to make sure all
businesses are contributing to a more resilient and sustainable
productive economy, capable of delivering the growth we
need.
“As the government consults on these upcoming changes, the IoD is
committed to working with government to ensure that the interests
of businesses of all sizes are taken into account and that there
are no resulting unintended consequences.”
