Prompt payment is essential for businesses, says FPB

Monday 12 November 2012

Vince Cable has called on local authorities to set the right example by ensuring invoices are paid in a timely manner.

The Business Secretary - whose department has asked councils to pay in under ten days - noted that businesses need a steady cash flow to survive and grow.

He claimed that late payment remains "a real issue" for many firms, particularly small and medium-sized businesses.

"While we are continuing to work alongside industry bodies in the UK to encourage more businesses to sign up to the Prompt Payment Code, it is important that the public sector lead by example," Mr Cable stated.

He said that some local authorities have made "real progress" in paying suppliers on time.

According to the Forum of Private Business, Tonbridge and Malling (97.1 per cent success rate), South Northamptonshire (96.1 per cent) and Waverley (94.2 per cent) among the best performers.

"I strongly welcome the progress that has been made by local authorities in paying suppliers on time as it will free up millions of pounds in the supply chain," Mr Cable added.

He said this will help boost the economy and safeguard the future of thousands of UK companies - helping to sustain vital jobs.

Posted by Dan Smith