Government to give business groups new powers to tackle late payment
26 March 2015
In particular, business groups will gain further powers to challenge unfair payment terms and practices on behalf of their members. The Business Secretary Vince Cable, said that large companies using their economic might to impose unreasonable terms on their supplier causes real problems for small businesses. He added that the reforms will make the UK a fairer and more trusted place to do business.
The measures include:
• Consulting on ways to tackle poor payment practices, such as by giving representative bodies greater powers to challenge grossly unfair payment terms and practices.
• Leading by example on public sector procurement.
• New laws to increase transparency on the payment practices of large and listed companies and help change corporate payment culture.
• Toughening up the Prompt Payment Code
• Giving the Groceries Code Adjudicator the power to fine supermarkets for breaching the Groceries Supply Code of Practice
Representative bodies such as the Federation of Small Businesses (FSB) have played an important role in raising the profile of payment issues. Empowering these organisations further in challenging unfair payment terms on behalf of their members, could give small businesses more confidence to speak out against the poor practices of their larger customers.
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