Open Access Government discusses the UK Cabinet Office’s efforts to address the issue of late payments in government contracts. “Figures from the Federation of Small Businesses (FSB) show small firms are owed an average of £6,142, mostly from larger organisations not paying them for goods and services on time. According to its research, 37% of small firms have run into cashflow problems because of late payments, while almost one in three has had to turn to an overdraft and 20% have seen a slowdown in profit growth. The FSB estimates that if all payments were made on time then 50,000 more businesses would stay open and the wider UK economy would receive a £2.5 billion boost,” it says. Read the full discussion on the Government’s measures here.
No Comments