Earlier this year, the Chancellor of the Exchequer announced that the Department for Business, Energy and Industrial Strategy (BEIS) will launch a call for evidence ‘on how we can eliminate the continuing scourge of late payments’. The collapse of Carillion, highlighted a serious issue around the continuing prevalence of late and unfair payment practices and the impact this can have on small businesses. Businesses of all size should be able to compete and thrive and creating a responsible payment culture is vital for this to happen.
BEIS has now launched the call for evidence seeking views and experiences on the impact of late and unfair payment practices and proposals for measures to tackle the problem. A link to the call for evidence and online survey can be found here – https://www.gov.uk/government/consultations/creating-a-responsible-payment-culture-a-call-for-evidence-on-tackling-late-payment. The survey will be open for 8 weeks and closes on 29th November 2018.
Alongside this call for evidence, the Secretary of State announced at the beginning of October that the government would take immediate action to tackle late payment, by:
- Introducing a new, tough and transparent compliance regime to underpin the Prompt Payment Code and helps restore its integrity. The call for evidence will consider whether the Prompt Payment Code should be moved to the responsibility of the Small Business Commissioner.
- The government will also consider the best way to ensure all companies have responsible payment practices in their supply chains, including whether all company boards should have a non-executive director responsible for prompt payment. The call for evidence will explore this further.
BEIS are seeking to capture a wide range of views and welcome your input and responses to the call for evidence via the online survey.
If you have any queries relating to the call for evidence, please do not hesitate to get in touch via their dedicated mailbox firstname.lastname@example.org.