CIPS News


CIPS CEO agrees prompt payments to SMEs are crucial

CIPS 27 July 2011

CIPS CEO welcomes Cabinet Ministers call for quicker payment.

Big businesses are being called to follow the Governments lead by paying bills promptly. The government has increased its pledge to help support Britain’s small and medium enterprises by enabling them to name and shame those that do not pay within the 30 day limit. Francis Maude, the Minister for the Cabinet Office, said that it was “inexcusable not to pay up quickly” for work completed.

The government is implementing measures to monitor payment, such as the Crown Representative team encouraging and monitoring their contractors to pay quickly along with the use of the governments “mystery shopper” service. The mystery shopper service is a way of anonymously reporting those who delay payment, which will then be published on the cabinet office website.

David Noble, CIPS CEO, said, “The government’s strong approach to helping smaller enterprises is a great way to encourage innovative, new talent into the market but prompt payment is crucial for them to stay afloat. Late payment is one of the top problems cited by small business owners but there is no reason why large businesses cannot pay well within the 30 day limit even in today's economic climate. Bigger businesses knowing that bad behaviour will be noticed and published on an official site will go a long way in forcing them to change their ways”

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