Last month the Department for Business, Innovation & Skills published a discussion paper, Building a Responsible Payment Culture. The deadline for responses to be submitted is the end of this month.
The government is seeking views on:
- whether more can be done to change business culture through measures to enhance accountability and transparency
- how to encourage small businesses to make better use of the statutory rights they already have and whether there is a case to enhance those rights
- how government can help small businesses to help themselves to reduce the risk of late payment.
The discussion paper is an acknowledgement that there is a culture of late payment in the UK. The National Specialist Contractors Council (NSCC) said that the consultation presents “a real opportunity for those within the construction industry to put forward what they believe can be done to change it for the better”
NSCC will be pushing the objectives of its Fair Payment Campaign, including certainty of payment, 30-day payment and the removal of retentions.
NSCC is urging specialist contractors to write letters to business secretary Vince Cable highlighting the damaging effects that late payment have within construction. Submissions might include personal examples of the direct costs incurred from employing additional staff to chase payments, securing overdraft facilities to support cash flow or paying suppliers late. A template letter is available from the NSCC.
Responses must be submitted by Friday 31 January to latepayment@bis.gsi.gov.uk.
You can read the consultation paper at www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture
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