Large late payers to be named & shamed

Large companies that fail to pay their small business suppliers promptly will be named and shamed online by the government, a cabinet office minister says.

The Rt Hon Francis Maude MP is urging small businesses to act as whistleblowers with examples of instances where payment times are slipping, with results to be published on the Cabinet Office website.

The Minister says, ‘Prompt payment is crucial to small business. When work has been done, especially by an SME, it is just inexcusable not to pay up quickly for that service. We will be keeping a close eye on how the big suppliers choose to pay their sub-contractors and we won’t shy away from naming and shaming those that we find have failed to pay promptly.’

The Crown Representatives team, which coordinates the government’s approach to the management of key suppliers across all departments, will strongly encourage prime contractors to pay more quickly than 30 days.

Gareth Osborn, a former member of the Small Business Council advising Government on SME issues and co-writer a paper for Cabinet on how to ensure better credit management practices apply when large businesses engage with smaller suppliers, said: SMEs are the real engine for growth in the UK economy. Squeezed margins and a lack of cashflow mean that many small businesses have halted their growth plans. These businesses need to be paid on time to help them overcome working capital difficulties before they can actively pursue growth and add momentum to the wider economic recovery.

APA