Govt vows to tackle late payments to help small firms

The government has announced that it will be tackling the late-payment culture that is hindering small businesses after listening to several complaints.

Indeed, Business and Enterprise Minister Michael Fallon says that the government will "go to war" on the problem, which is thought to be worth £36.5 billion.

The Telegraph and Sunday Telegraph have launched a campaign on the topic and have already received several stories from small firms who have been affected by payment delays.

Mr Fallon told the news provider that large firms must ensure they pay their suppliers or sub-contractors on time.

"That is why I have urged the largest companies to sign up to the Prompt Payment Code, which is five years old this month," he explained.

"I wrote to all chief executives [in the FTSE 350] back in October, since then 54 more companies have signed up, half of those from the FTSE 350, but there are still many more to go. And next month I am going to list those who haven't signed. They have got another month to sign up."

Meanwhile, the British Chamber of Commerce has revealed that availability of credit is still a problem for small firms.

Posted by Thomas Fletcher

Date published 10 Jan 2013 | Last updated 10 Jan 2013