Blackpool based business support group claims late payments victory

Small businesses suffer most from the late payments culture
Small businesses suffer most from the late payments culture
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The Chancellor’s spring statement was unsurprisingly given the Brexit uncertainty a low key affair, but on Blackpool-based business support organisation found some good news which may help thousands of small businesses.

Business chiefs are celebrating a victory after Chancellor Philip Hammond took action after complaints about late payments to small companies.

Mike Cherry

Mike Cherry

The Squires Gate-based Federation of Small Businesses was praised by Mr Hammond as he announced a crackdown on firms who hold back payments.

Company audit committees are to review late payment practices under new plans.

FSB National Chairman Mike Cherry said: “The UK’s late payment crisis destroys thousands of businesses every year. The commitment from the Government to tackle it is much-needed.

“We’re particularly pleased to see the measure set out in our Fair Pay Fair Play campaign taken forward: making Non-Executive Directors responsible for supply chains through the audit committees of large businesses.”

Mr Hammond delivered his Spring Statement in the Commons amid massive Brexit uncertainty.

Mr Cherry also welcomed his commitment to lighten up on the “rush” to Making Tax Digital.

He said: “Against a backdrop of debilitating political uncertainty, the Chancellor has rightly responded to calls from the small business community.

“Small business confidence has suffered an unprecedented slump in recent months as firms are unable to plan, invest and hire for the future. In the coming weeks, business owners will have Making Tax Digital, higher auto-enrolment contributions and fresh business rates hikes to contend with.

“It’s good to see the Government offering a reprieve on this front, going further in its commitment to light touch enforcement of Making Tax Digital, following our warnings about the costs of rule changes. This commitment must be honoured.

“It should also be extended if unexpected issues with the new system arise.”