Blackpool MP Chris Webb: We need tough new laws brought in to stop late payments hitting small businesses

Blackpool South MP Chris Webb is calling for new laws to ensure that small businesses are paid in time and wants to hear the experience of local entrepreneurs who have suffered at the hands of late payers.

Chris Webb said: “Our community is full of brilliant local businesses and hardworking entrepreneurs, but too often they are spending their time chasing payments instead of growing their business.

“Every year thousands of businesses go under because customers, often far larger businesses, do not pay for good or services promptly. It’s choking local businesses, and it’s got to stop.

“I want to see tough new laws to ensure fast payment of invoices and penalties for persistent late payers.

“I need the help of local businesses to prove that this is problem that needs this bold action. The government is running a consultation until October 23 and I’m urging any local businessperson who has suffered from late payments to please make your voice heard.”

Late Payments are one of the biggest complaints by small businesses, where often far larger businesses drag their heels in paying smaller suppliers. This causes huge hardship to small companies, with thousands closing as a result of late payments and costs the UK economy billions of pounds.

The Labour Government is currently running a consultation seeking views on a package of proposed legislative measures to address late payments.

Mr Webb wants this to be the strongest protections on late payments of any big economy.

He added the plan has the potential to help boost local high streets and small firms:

He said: “Everyone will benefit from these measures. When businesses are paid on time for the goods and services they deliver, money flows more quickly through supply chains and into our local economy.

“Businesses can invest in their business rather than spending time and money chasing unpaid invoices. That means more jobs and that’s what Blackpool desperately needs.”

To contribute to the consultation here: https://ditresearch.eu.qualtrics.com/jfe/form/SV_0v37vzvBpfM5Exw