Gosport MP Caroline Dinenage today pushed the Government to introduce tougher measures for large companies that fail to pay their bills on time. Late payment is one of the most serious issues affecting small businesses; with research showing that in 2011, 125,000 businesses were almost put out of business by late payment; and the local MP, who is the PM's Small Business Ambassador for the South has repeatedly pushed the Government to take a firmer stance on big companies failing to pay small businesses on time.
Speaking in the chamber, Caroline said, "Businesses in my region really welcome proposals in the Small Business Bill on prompt payment but with £46 billion currently owed to businesses in the UK, up £10 billion on last year, as the bill goes forward will the Minister consider making the code even tougher, and broadening it to more companies?"
Responding for the Government, Secretary of State for Business, Innovation, and Skills Vince Cable replied:
"Well she's quite right that particularly given the overall problems with access to finance for small and medium sized companies, the issue of late payment is critical and it is on a massive scale as she describes. We will in the course of this bill be making it much more transparent; how larger companies in particular make their payments, helping small companies in that way. I'm very happy to look at how we can strengthen the code and indeed we are talking to the institute of credit management about how we can do that."
Commenting outside the chamber, Caroline said, "As a small business owner I know first-hand the problems a late payment can cause for small and medium sized firms. This Government has a good record on backing small businesses – but we need to go further in tackling a widespread and harmful culture of larger firms failing to pay smaller companies on time."