Written question asked by Lord Barnett (Labour) on Wednesday, 16 July 2014, in the House of Lords. It was due for an answer on Wednesday, 30 July 2014. It was answered by Baroness Neville-Rolfe (Conservative) on Monday, 28 July 2014 on behalf of the Department for Business, Innovation and Skills.

Business: Billing

Question: To ask Her Majesty’s Government what assessment they have made of the current impact of late payments on small and medium-sized enterprises (SMEs); and what steps they are taking to support SMEs to mitigate the impact of late payments.

Answer: The Government considered the impact of late payment on Small and Medium Enterprises in our discussion paper Building a Responsible Payment Culture. As a result we are working with industry to create greater transparency of payment practices and a more responsible payment culture. This will include a statutory requirement, via the Small Business Enterprise and Employment Bill, for large firms to publish their payment practices. In addition, we are committed to working with the Institute for Credit Management and businesses to strengthen the Prompt Payment Code.

Secondary information