Small Businesses: Late Payments

Debate between Lord Prior of Brampton and Lord Campbell-Savours

Monday 11th September 2017 Lords Chamber

[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.

[Lord Campbell-Savours (Lab)]

My Lords, this argument has been going on, under successive Governments, for the last 30 years at least. Where is the real resistance to change and intervention by government coming from? Nothing ever changes.

[Lord Prior of Brampton]

My Lords, there is a natural reluctance for any Government to get in between supplier and customer in commercial relationships. If there is a problem, it is much better if it can be sorted out. As my noble friend Lord Hamilton pointed out, there are ways of getting redress. I am not sure what the figures are, but I imagine that, going back 30 years, you would find that the average number of days outstanding for commercial debts has come down considerably.