More than six months on and the chancellor’s pledge is well overdue. No consultation has been attempted and no progress made. As a result, small businesses are still struggling to breathe under the heavy burden of unpaid invoices and demolished cash flow.
Reports from within Westminster have blamed Andrew Griffith’s resignation for the hold-up. The former small business minister departed amidst accusations of inappropriate behaviour with two constituents. Late payment was flourishing under Griffith’s reign so that shake-up can hardly have contributed.
The Federation of Small Businesses has been outspoken in its anger towards the delay, particularly concerned that the issue has not been taken seriously enough. Late payment has taken its toll on the small business community for years. While the government has launched various initiatives to extinguish the threat, all have failed to make enough of an impact.
New figures from small business finance platform, Funding Options, have revealed that the newly appointed small business commissioner has only investigated a handful of cases. Paul Uppal, the commissioner, was appointed last year to tackle late payment to small suppliers. So far he has been reluctant to name and shame offenders or assume a tougher approach. The revelation that he is only handling a limited workload is further evidence that the government is simply not doing enough.
Dismantling the country’s late payment culture may not be an easy feat but it will be a collaborative one. To see small suppliers paid on time, late payers need to be punished and some precedent needs to be set. The government, of course, has some responsibility here, but the business community can also shoulder some of the weight. Small businesses need to have the confidence to come forward and report larger businesses. Their reluctance has underpinned initiatives such as the Prompt Payment Code as well as the performance of the small business commissioner.