You are here: Home - Household Bills - News -

MPs support fines for late payments to suppliers

0
Written by: Danielle Levy
07/01/2019
73% of MPs surveyed have thrown their support behind proposals to fine companies which repeatedly fail to pay their suppliers within 30 days.

Three quarters of a sample of 100 MPs from all political parties have endorsed proposals put forward by the Association of Accounting Technicians (AAT), which were also endorsed by the Business, Energy & Industrial Strategy (BEIS) committee of MPs in December. The MPs were surveyed by YouGov and the research was commissioned by the AAT.

The BEIS committee’s measures support three of the AAT’s core recommendations. Firstly, to make the ‘Prompt Payment Code’ a legal requirement for businesses that employ more than 250 employees. The code calls for payment within 30 days to become the norm.

In addition, the BEIS committee supports proposals to issue financial penalties for persistent late payers and to halve maximum payment terms from 60 to 30 days.

Phil Hall, AAT’s head of public affairs and public policy, explained: “Late payments lead to thousands of insolvencies every year, damage productivity, restrict investment and can also impact on the mental health of small business owners and their employees.

“Government action to tackle this problem, from the voluntary payment code to compulsory but feeble reporting requirements – as well as the creation of a Small Business Commissioner with no real power – have all predictably failed to stem the scourge of late payments.”

With support from close to three quarters of MPs from across the political divide for payment reform, Hall believes it is difficult for the government to “continue to drag their heels and back the status quo”.

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week