Oral Answers to Questions

Maggie Throup Excerpts

Tuesday 17th January 2023 Commons Chamber

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

3. What steps he is taking to support small and medium-sized businesses.

[Maggie Throup (Erewash) (Con)]

4. What steps he is taking to support small and medium-sized businesses.

[Stephen Hammond (Wimbledon) (Con)]

16. What steps he is taking to support small and medium-sized businesses.

--- Later in debate ---

[Kevin Hollinrake]

The £18 billion energy bill relief scheme is set out clearly in legislation, so it should be applied in a uniform way by all licensed suppliers. The regulations include a robust monitoring compliance and enforcement regime. Suppliers are required to inform customers about the details of support, including the amount of the discount and the supply price, to ensure transparency. That will also be the case with the energy bills discount scheme, which starts in April.

[Maggie Throup]

Many SMEs are facing increasing pressure to agree lengthy payment terms of up to 90 days as a prerequisite to securing contracts with larger firms. That has significant cash-flow implications for businesses that already operate on a tight margin. To support further SMEs such as those operating across Erewash, will my hon. Friend commit to working with Treasury colleagues to review the UK’s payment terms regulations with a view to reducing the maximum credit period, as has happened in Germany?

[Kevin Hollinrake]

I thank my hon. Friend for raising that point. This is a very significant problem for many businesses, particularly micro-businesses. Our prompt payment and cash flow review will examine business behaviours and small business experience of late payment and long payment terms, to help ensure that the UK has arrangements in place to best support small businesses. It will include looking at the payment reporting obligations and a review of the role of the Small Business Commissioner.