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Glasgow
+44 (0)141 221 2984

Edinburgh
+44 (0)131 225 6366

Stirling
+44 (0)1786 451745

Dumbarton
+44 (0)1389 765238

Hamilton
+44 (0)1698 459444

French Duncan

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.

If you need any advice on this matter then please don’t hesitate to get in touch with us.