Small Businesses: Invoice Payments

Baroness Gardner of Parkes Excerpts

Tuesday 26th October 2010 Lords Chamber

[Baroness Wilcox]

Did the noble Lord say “delay paying public bills”? I am very sorry. Gosh—there we are. I shall go back and check that.

[Baroness Gardner of Parkes]

My Lords, is the Minister aware that many payments to small businesses are made by private individuals and that the transfer of money by direct bank payment is still very bad in this country, which causes delays in businesses receiving the money? Over the years, we have been told repeatedly that banks will be encouraged to transmit the money more rapidly, given that it is taken out of your account immediately but does not reach the other party for three or four days. Will the Minister encourage the banks to speed up this payment process?

[Baroness Wilcox]

Ensuring that banks keep things flowing for business is a long-standing issue. It is very important to ensure that the banks do everything they can in that regard, and for us to ensure that we provide the freedom and flexibility to enable businesses in this country to maintain the business flow which is badly needed right now.