Matthew Offord – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Matthew Offord on 2016-03-02.

To ask the Secretary of State for Business, Innovation and Skills, what steps his Department is taking to ensure that companies with more than 250 employees pay their suppliers in a timely manner.

Anna Soubry

The Government recognises that late payment remains an important issue for small businesses in the UK and is taking significant steps to assist small businesses to recover late payment debts. This is part of a package of measures to tackle late payment. We have also legislated for new transparency measures in the private sector.

The Small Business Enterprise and Employment Act 2015 legislated for a new reporting requirement on the UK’s largest companies and Regulations which will be introduced this year. This will compel larger companies to report on payment practices and performance. This information will be published on a six-monthly basis and will be made publicly available.

Through the Enterprise Bill, currently before Parliament, we will legislate to establish a Small Business Commissioner to give general advice and to help small businesses resolve disputes relating to payment matters with larger businesses.

Tackling late payment is about creating a responsible payment culture where larger companies recognise the benefit of having a sustainable and robust supply chain, and smaller businesses feel able to challenge poor behaviour. Once implemented, the Government is confident that these measures will lead to significant changes in the UK’s payment culture.