Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential effect of the £1 million technology fund for businesses on the issue of late payments.

Technology adoption can boost productivity in the UK. The £9 million Business Basics Programme was announced in the Industrial Strategy, to test innovative ways of encouraging SMEs to take up the proven technology and business practices that can boost productivity.

Government believes there is also a role for the Commissioner to run a campaign to promote technological solutions to SMEs to reduce late payment, improve cash flow and encourage better credit management. This fits with the Commissioner’s role in offering advice and guidance on payment matters to SMEs.

It is envisaged that this combined approach will improve awareness of the use of technology and begin to make inroads to improve administrative processes that underpin business operations such as streamlining invoicing, payment and credit management, ultimately making payment practices more efficient and businesses more productive.

Government has worked closely with trade bodies and businesses to develop this. Mike Cherry, FSB National Chairman, said of the recent announcement: “Small businesses will be delighted with today’s announcement” and “the measures today could finally see an end to poor payment practice. Changing our business culture will boost the small business community, productivity and growth.”