New commissioner to tackle late payment culture

The UK government has published proposals for a Small Business Commissioner to help tackle payment disputes and other unfair practices.

A consultation paper issued yesterday sets out how the appointment could lead a culture change in how small businesses resolve disputes with larger companies.

It would help small firms access advice, support, mediation and conciliation services, and have the power to look into complaints and report on its findings.

Small business minister Anna Soubry said: “The government is backing small businesses to grow and create more jobs and opportunity. Small businesses are owed £26bn in late payments and spend millions more chasing down money they have already earned through hard work. This is simply unacceptable – it limits their growth and productivity, and can put an otherwise successful business at risk.

“The Small Business Commissioner will tackle the imbalance of bargaining power between small suppliers and large customers, and encourage them to get round the table and sort out disputes at a fraction of the cost of going to court. It will also provide advice, investigate complaints and see where further action is needed to clamp down on unfair practices.”

This is one of a number of measures that the government is implementing in a bid to tackle late payment. The Small Business, Enterprise and Employment Act 2015 introduced a reporting requirement for the UK’s largest companies to report on their payment policies and practices. The Small Business Commissioner will be able to use this data to name and shame those behaving badly and celebrate those leading the way by paying promptly.