The new Small Business Commissioner has committed to a “crackdown” on late payments after research revealed that billions of pounds are owed to firms across the country.

The report comes after the appointment of former Citizens Advice CEO, Liz Barclay, as head of the department which helps small businesses settle financial and contractual disputes.
According to the latest figures, some £23.4 billion is owed in outstanding invoices to small businesses, which account for two-thirds of UK private sector employment and more than half of business turnover.
It means, for much of the economy, that late payments are damaging income, “holding back investment and job creation”, and in some cases, leading to business failures.
For example, the Federation of Small Businesses (FSB) suggests that late payments can be directly attributed to the collapse of over 50,000 small businesses every year.
Commenting on the report, Ms Barclay said action to stop the damaging practice of late payments will “remain a key priority” during her tenure.
“We need a real culture change around business payments in the UK to take pressure off our phenomenal entrepreneurs. People who have already delivered goods and services have to be able to turn their attention to their next client and next order rather than chasing up late payments and worrying about their cashflow. I know from personal experience how damaging that can be to mental and emotional health,” she said.
“By working with businesses and ensuring their concerns are listened to I hope to be able to deliver a payment regime that keeps cash flowing and works for everyone.”
Small Business Minister Paul Scully added: “Having run small businesses for most of my professional life I know just how toxic delayed invoices can be, causing needless uncertainty as business owners chase payments which should have been made weeks or even months ago.”
The report comes after the Government announced major reforms to the Prompt Payment Code. The planned changes will see the 60-day target cut in half to just 30 days, while directors will be required to take personal responsibility by signing the code and acknowledging that suppliers can charge interest on late invoices.
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