Small Businesses: Late Payments
Debate between Lord Popat and Lord Borrie
Lord Popat
My Lords, the Government fully support early payment schemes, which offer suppliers the option of early payment in return for a discount or a fee, as long as that is offered in conjunction with fair payment terms rather than as a substitute. The Government’s view is that all businesses should agree fair payment terms at the outset of the contract and that they should pay their suppliers on time, according to the agreed times.
Lord Borrie
My Lords, why do the Government not empower a public authority, such as the Financial Conduct Authority, to take up cudgels on behalf of small enterprises, to ensure that prompt payment is made of cash that is due to them?
Lord Popat
My Lords, we have a voluntary organisation, the Institute of Credit Management, which oversees the prompt payment code on behalf of the Government. We do not need a statutory organisation to bring in prompt payment.