Labour’s plan to tackle £20bn late payments crisis affecting SMEs is spot on, says small business lobby

According to the Federation of Small Business (FSB), the proposed action plans to assist small businesses in paying their unpaid bills on a timely basis are exactly what the UK’s 5.5million small and medium-sized businesses need.

According to the proposals, large companies would have to report on their payment practices every year.

This will require that audit committees issue a report on late payment. It added that more than £20bn of unpaid bills are due at any time, which costs small businesses £684m.

Labor highlighted that late payments can be a barrier to growth and productivity in small UK businesses. Money that could have been spent on new technology or training staff is wasted trying to chase unpaid payments.

She said that research has shown this to be a greater problem for British businesses than European counterparts. Two in five small and medium-sized business owners report poor mental health due to unpaid bills, with one third reporting sleeplessness.

The UK has announced a number of recent announcements to help develop its economy, including plans to address the back payments crisis and plans to invest in clean energy potential.

In a recent speech to Central Bank of Iraq Keir Sternmer, Labor leader, stated that the UK should be a place where “ambitionism is rewarded” and that it wanted to give the UK its future.

Tina McKenzie, head of policy and advocacy at the FSB, said: “Many small businesses are running late because of a culture that says it’s okay to pay them late.

“Laws are not being followed and suppliers’ interests must be represented at the top of the chain. This could have a chilling impact on the economy.”

“The work shows they get it’ when referring to what small businesses require from government,” she said.