
SMEs were owed more than £36bn in late payments last year, a parliamentary inquiry has revealed.
The inquiry was created to investigate the impact of late payments on small businesses. It has called for big companies to be forced to publish how long they take to pay small firms, and for the government to support trade associations dealing with payment disputes on behalf of SMEs.- The government should promote the adoption of ‘good practice’ guidance for large companies in managing supply chains, including publishing performance data relating to payment-on-time to suppliers in audited annual accounts;
- The government should support SMEs to avoid late payments through free, high-quality financial management advice and/or training provided, for example, through trade associations, SME organisations, or local SME advisors;
- The government should establish a Construction Code of Conduct, similar to the Grocery Code, with an independent adjudicator for mediation;
- The government should introduce a Retentions Monies Bill with money retained by a customer from a supplier to be held in a trust; and
- The government should support intermediary agencies, for example, SME organisations or trade associations, to act on behalf of suppliers in seeking recompense through the EU Late Payments Directive.
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