Change in payment culture needed, declares FSB

  • 20 Jan 2017

The Government needs to spearhead a campaign to change the culture of late payment following its consultation into how a new Small Business Commissioner will handle complaints. 

That’s the call from FSB, which recently published research showing that around one-third of payments in the UK are late. It is calling for company boards and chief executives to own and be accountable for their payment practices.

“The new Commissioner must have the confidence and respect of the entire business community and the strength to take on large businesses where necessary,” said Mike Cherry, FSB National Chairman. 

“However, real success will depend on a top-level approach by the Government. Prime Minister Theresa May’s corporate governance agenda must prioritise the problem of poor supply chain practice.”

In recent years, FSB has led the debate on tackling the scourge of poor payment. Initiatives include highlighting practices such as retrospective discounting and charging to be on supplier lists. These moves have involved facilitating a Number 10 summit with FTSE 350 companies, the Government and small business owners themselves.

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