Kerr backs prompt payment for Stirling's small businesses

Stirling’s MP has welcomed the support from the Committee for changes to be made to ensure our small businesses get their payments promptly.

 

Last week the Committee published its report into small businesses and productivity.

 The report included the issue of late payments and has backed the campaign that has received cross party support and makes three recommendations for change:

 

  • Make the Prompt Payment Code compulsory for companies with over 250 employees
  • Halve maximum payment terms from 60 to 30 days
  • Introduce a financial penalty regime for persistent late payers, enforced by the Small Business Commissioner

 

The BEIS report states,

“We recommend that the Government moves as soon as possible to require all medium and large companies to sign the Prompt Payment Code and quickly adopts a statutory limit of paying within 30 days. We recommend that the Government legislates as quickly as possible to give the Small Business Commissioner powers to fine companies who pay late…”

 

Stephen Kerr Said:-

It is just not acceptable that larger companies take advantage of their position and often delay paying out money owed to smaller companies for unreasonable periods. Stirling has many small businesses and they all work hard to keep going. It’s been especially difficult recently and they all deserve to get what they are due within a sensible time. It should be legally enforceable and the fines will need to be big enough to ensure everyone complies.