Happy new year and welcome to the January 2023 newsletter
Office of the Small Business Commissioner
Set up under the Enterprise Act 2016 to tackle late payment and unfavourable payment practices in the private sector.
Read time: 2?minutes
Top lines
- Commissioner's interview with?The Times?on fining late payers
- Everyone Benefits campaign
- Supporting small businesses over the festive period
What’s new??
Everyone Benefits Campaign
To kick-off the year, the Commissioner published an?open letter to businesses, encouraging them to make their new year’s business resolution to pay suppliers quicker. The letter is part of our?Everyone Benefits campaign. With economic challenges mounting, it’s vital that all links in the supply-chain support each other through faster and fairer payments – that way #EveryoneBenefits.??
Commissioner’s interview with?The Times
This month, the Commissioner also?sat down with?The Times?to discuss her stance on fining late payers. The topic has gained renewed interest following the government’s announced?Payment and cash flow review, which will examine ways to improve payment practices for small businesses. The Commissioner argued that calling out good payment practices by larger firms, and getting other businesses to aspire to their behaviour, would likely be more effective than fining?poor payers, which?can be ineffective and costly.??
Commissioner's insights
I never cease to be in awe of the resilience of small business owners. As I was thinking about New Year resolutions and doing more to encourage bigger customers to pay smaller suppliers quicker, so they could weather the cost of doing business storm, small business owners were resolving to thrive in 2023. Overall, the stark reality illustrated by figures from various business organisations is that business confidence is down, costs are still high and business inflation is through the roof, yet individual small business owners are determined that their own particular small business will get through. The personal resilience that comes with an entrepreneurial mindset is inspiring.?
Thanks to the small business people I met over the festive period who gave me cause for optimism. They’re taking on additional jobs, diversifying their services and working longer hours for less money. They’re determined not to pass additional costs on in higher prices to customers they know have less to spend. Now we need to see their bigger business customers responding in kind by getting money owed into small supplier bank accounts quicker. Let’s pull together to get through the next 12 months.??
Liz Barclay, Small Business Commissioner
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Casework catch-up
Supporting small businesses throughout the festive period?
Over the festive period, we continued to support small businesses with getting their overdue invoices paid.?In?a recent case we resolved, a freelance journalist had been waiting since summer 2022 for payment for several pieces of work. Despite repeated attempts to collect payment, the publishing company they’d completed the work for had ignored all correspondence. On 30 December, the journalist contacted our team. Following our intervention, by 9 January they’d received their late payments in full, including the compensation and interest.?
Late payments and extended payment terms are increasing across the UK economy. Combined with the wider economic challenges, these payment practices put small businesses at significant risk of closure, cause owners anxiety and lead to mental health problems.?Hours spent chasing payments are hours not spent planning and growing your business.?
If you’re grappling with late payments or want advice and guidance on how to secure fair payment terms for your business, contact us. You can?email the casework team?or call 0121 695 7770.?
Prompt Payment Code update??
New signatories
Below are some of the 21 organisations that have successfully signed up to the Prompt Payment Code in the last three weeks:
Our signatories represent all sectors and regions across the UK economy. Want to join the Code??Visit the PPC website.
Want to get in touch?
For late payment complaints or support with payment practices:
You can also?visit the OSBC website?for tips, guidance and our late payment calculator.?
Email our Comms Team, for media, collaboration or engagement enquiries.