Retail group welcomes government moves to tighten up late payment rules

Stuart Reddish, national president of the NFRN, said: “We welcome the suggestion that the SBC be given teeth to actually enforce the decisions he comes to in issues relating to late payments.

“It is important that small businesses have this kind of support, particularly when dealing with big business, and it is good that the government is moving in this direction.”

Proposals to strengthen the powers of the SBC are now going through a consultation period, which ends on 24 December, for all interested parties to give their views.

One proposal relating to late payment is that the SBC be given the power to impose binding payment plans and financial penalties on companies.

The SBC says the “late payment culture” that exists in the UK means that a third of payments to small companies are late and the average value is £6,000-plus.

The SBC is an independent public body set up by government to tackle late payment and “unfavourable” practices in the private sector and covers the whole of the UK.