Small Businesses: Late Payments

Lord Hamilton of Epsom Excerpts

Monday 11th September 2017 Lords Chamber

[Lord Prior of Brampton]

My Lords, I do not have that figure. The noble Lord is absolutely right that there is now an obligation on big companies to be transparent in their reporting. That came in in April 2017 and is done on an annual basis, so we will not know until April 2018 how many companies are doing it.

[Lord Hamilton of Epsom (Con)]

My Lords, when the late Lord Weinstock’s GEC took three months to pay my small engineering company, when it should have taken a month, I sued him in the county court and everything changed dramatically. Small companies are reluctant to sue big ones, but they fail to take into account that the accounts departments of these ginormous companies very rarely talk to the sales departments.

[Lord Prior of Brampton]

My Lords, the noble Lord makes a very good point. Small companies are often reticent to take on big ones, in the fear that they will lose business in the future. Making that relationship easier is one of the reasons why we are appointing the Small Business Commissioner. Where public contracts are involved, we have a mystery shopping service, which enables small companies to ask the Government, on their behalf, to verify late payment and understand why it is taking place.