Question

To ask the Secretary of State for Business, Innovation and Skills, what recent assessment he has made of the effect of late payments on small and medium-sized businesses (SMEs); and whether his Department plans to bring forward any further measures to assist in SMEs with cash flow.

In the May 2014 Government Response to our discussion paper, Building a Responsible Payment Culture, we set out measures to create greater transparency of payment practices and a more responsible payment culture. Through the Small Business, Enterprise and Employment Bill we are developing a requirement for large firms to publish their payment practices and a measure to prohibit contractual barriers to finance.

In addition, we have committed to working with the Institute for Credit Management and signatories to strengthen the Prompt Payment Code. And the British Business Bank aims to address long standing, structural gaps in the supply of finance to businesses and provide diverse sources of funding for small and medium sized businesses.