0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Chancellor Pledges to Tackle “Scourge of Late Payments”

Written by: Keith Tully

Published: 12th March 2019

Chancellor Pledges to Tackle “Scourge of Late Payments”The chancellor of the exchequer Philip Hammond has said that action needs to be taken to tackle the “scourge of late payments” within business supply chains.

Across the country, late payments of supplier invoices cost companies of all sizes billions of pounds collectively and lead to thousands of insolvency cases each year.

Small businesses are particularly hard hit by the problem of having their larger scale customers prove to be stubbornly sluggish or reluctant payers.

According to the Federation of Small Businesses (FSB), four out of five small businesses have had issues with late payments and the organisation has been calling on the government to take a lead in tackling the problem.

The chancellor took the opportunity in his Spring Statement at the House of Commons in Westminster to address the subject and say “we need to tackle the scourge of late payments”.

“As a first step we will require company audit committees to review payment practices and report on them in company accounts,” he said.

Mr Hammond also announced that the government will launch a consultation looking at the possibility of bringing in legislation that makes further demands of listed companies when it comes to the issue of late payments.

The FSB has said it is particularly pleased to see that the government will oblige all large businesses to give a non-executive director responsibility for supply chains and late payment issues.

“The end of late payments could finally be in sight,” said Mike Cherry, the FSB’s national chairman, in response to the chancellor’s announcements.

“It can’t come soon enough, to bolster small businesses at a time when they are in great need of support and a lift in confidence.”

Mr Cherry has previously said that companies across the country are “sick and tired of being left out of pocket by some unscrupulous big businesses”, who he says take advantage of the imbalances of power within supply chains to “improve their own balance sheets or mask their own financial failings”.

“Nobody should want to see small business owners turning to personal credit cards or overdrafts because of late payments, or even worse for a business to go under as a result of not getting paid,” he said, prior to the chancellor’s Spring Statement.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners