13-08-2007
Labour fails small businesses on late payment legislation
For 10 years the Labour government has been promising to successfully tackle the late payment culture that has become endemic in the business community. But according to research fro the Forum of Private Business, late payments are still cited by small and medium sized businesses as their most consistent problem.
The Institute of Directors has warned of a grave concern to the government’s approach to the problem of the ‘glass ceiling’ which is curbing smaller companies’ growth. In a policy paper released today, it says that the ministers’ decision taken in June to remove a Whitehall group dedicated to tackling late payment is part of what may become a downgrading of the small business service.
Miles Templeman, Director-General of the Institute, said: “It gives out the wrong signals to the business community. Late payment [is] the factor causing the most significant negative impact on smaller companies, yet government have withdrawn support and reduced funding.”
The issue of late payments isn’t likely to be resolved in the near future, so many businesses are looking at other solutions for managing cash flow.
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