<\/p>\n
Emma Jones: I am on a mission<\/p>\n
A significant expansion of\u00a0powers for\u00a0the Small\u00a0Business Commissioner to tackle the scourge of late payments will be announced today.<\/p>\n
They will allow the\u00a0Commissioner to levy financial penalties\u00a0against large businesses who are persistent late payers.\u00a0<\/p>\n
Penalties\u00a0could amount\u00a0to\u00a0a percentage of a business\u2019s turnover which could equate to many millions for some of the UK current poor payers.<\/p>\n
Other powers include the ability\u00a0to settle\u00a0late payment\u00a0disputes out of court\u00a0through a new Adjudication function. <\/p>\n
This\u00a0expands\u00a0the\u00a0Commissioner\u2019s\u00a0existing ability to\u00a0review enquiries and investigate formal complaints made by small businesses\u00a0regarding\u00a0late and overdue payments.<\/p>\n
The new powers were announced as the UK Government published\u00a0its\u00a0response to the\u00a0late payment\u00a0consultation\u00a0launched\u00a0in the Autumn.\u00a0<\/p>\n
The consultation reviewed the\u00a0proposed\u00a0measures,\u00a0and\u00a0strong support\u00a0from across the business\u00a0community\u00a0was\u00a0received\u00a0for an expansion of the Commissioner\u2019s powers.\u00a0<\/p>\n
Other actions to\u00a0clamp down\u00a0on\u00a0late payments\u00a0include a new\u00a060\u2011day cap on payment terms to be imposed on all large firms when paying smaller suppliers.\u00a0<\/p>\n
There will also be\u00a0mandatory interest on\u00a0late payments,\u00a0with a requirement for all commercial contracts to include statutory interest set at 8% above the Bank of England base rate.\u00a0<\/p>\n
Research from the Department of Business and Trade and the Small\u00a0Business\u00a0Commissioner has shown that\u00a0late payments\u00a0cost the UK economy almost \u00a311 billion a year. The issue causes 38 businesses to\u00a0close each day with\u00a0business\u00a0owners spending\u00a0an average of\u00a086 hours\u00a0chasing debt.<\/p>\n
Emma Jones, Small Business\u00a0Commissioner, said: \u201cI am on a mission to make life easier for small firms\u00a0by getting\u00a0money moving faster through the economy by\u00a0tackling\u00a0late payments. <\/p>\n
\u201cThe measures the Government has announced today will strengthen the role of my office in taking on the worst\u00a0payers alongside ensuring small businesses have a stronger voice on payment terms and\u00a0late payment\u00a0interest.\u00a0<\/p>\n
\u201cI work with many firms, including those on the Fair Payment Code, who see\u00a0the value\u00a0of prompt payment\u00a0to their business, but\u00a0for too many\u00a0late\u00a0payments\u00a0and\u00a0long payment times persist with little\u00a0accountability.\u00a0<\/p>\n
\u201cThese reforms will reduce the hours spent chasing\u00a0debt,\u00a0allowing small businesses to focus on more productive and enjoyable growth.\u201d<\/p>\n
Business\u00a0and Trade Secretary\u00a0Peter Kyle said: \u201cFar too many businesses are forced to shut down because they have not been paid \u2013 that is simply unacceptable.\u00a0<\/p>\n
Peter Kyle: robust changes<\/p>\n
\u201cWe are unveiling the strongest, most robust changes to payment laws in over a generation \u2013 laws that will transform the fortunes of small businesses for years to come and make their day-to-day lives much easier.\u201d<\/p>\n
Abdul\u00a0Goffar, director, ACCA UK, said:\u00a0 \u201cWe urged the government to be practical \u2013 bringing forward pragmatic, transparent solutions which businesses can understand and work with. And\u00a0we\u2019re\u00a0glad\u00a0they\u2019ve\u00a0listened.\u00a0<\/p>\n
\u201cWe co-operate closely with the SBC, and we look forward to continuing to do so in this new era which we hope will reset the payment culture and so increase the chances of much needed business growth.\u201d<\/p>\n
Alan Vallance, ICAEW Chief Executive, said:\u00a0 \u201cLate payments are damaging to the economy. Paying suppliers late threatens jobs and the survival of otherwise productive businesses. Time spent chasing payments is time that is not being used by businesses to win new work and grow.\u00a0<\/p>\n
\u201cWe\u2019re\u00a0therefore pleased to see the government\u00a0take action to improve\u00a0payment culture. The new powers\u00a0for the Small\u00a0Business Commissioner will enable targeted and proportionate action to be taken against the small\u00a0minority of persistent late payers, as well as promoting cultural change on\u00a0late payments.\u201d<\/p>\n
Minister for Small Business and Economic Transformation, Blair McDougall\u00a0said: \u201cI know first-hand how difficult\u00a0late payments\u00a0can be, forcing you to decide if you can afford to keep a business running, pay employees or even buy Christmas presents for your children.\u00a0<\/p>\n
\u201cThat is why\u00a0I\u2019m\u00a0proud to be leading the charge on tackling a problem that has been left untouched for far too long.\u00a0<\/p>\n
\u201cThese are genuinely game-changing measures that will ensure no business, no employer, no family has to endure the immense strain of being left strapped for cash they have already earned.\u201d<\/p>\n
\t #powers #tackle #scourge #late #payments #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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