Small and Medium-sized Enterprises: Late Payments

Lord Harrison Excerpts

Thursday 19th June 2014 Lords Chamber

Asked by

[Lord Harrison]

To ask Her Majesty’s Government what progress has been made on the late payment of debt for small and medium-sized enterprises.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)]

Late payment has a damaging effect on the best-run companies, which is why the Government are taking firm action. Through the small business, enterprise and employment Bill, large firms will be required to publish their payment practices, which will hold poor payers to account and help small businesses to be paid on time. Further reforms will ensure that public authorities run timely and efficient procurements and give Ministers greater powers to investigate procurement complaints.

[Lord Harrison (Lab)]

My Lords, given that the Federation of Small Businesses finds that five out of 10 of its members are experiencing difficulties with late payment and that members of the Forum of Private Business have experienced a 23% rise in the problem, along with the NSCC discovering that only 3% of small firms are paid within the agreed 30-day period, is it not time to enforce the labour legislation permitting charging of commercial debt against both big businesses and big government?