The Business Secretary is warning big companies to stop delaying payments to small firms. Grant Shapps has launched a review aimed at tackling the practice, which can cause major difficulties for small businesses with low cash reserves.
As the UK marks Small Business Saturday, which highlights the importance of such firms, Mr Shapps said delayed payments are a “real barrier” to improved productivity and job creation as they face a challenging economic backdrop.
The Government already has a Small Business Commissioner dedicated to addressing the issue of late payments. But it says small firms, which typically operate with low cash reserves, have over £23.4 billion currently owed in outstanding invoices.
