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| Small business commissioner to target late payments | Small business commissioner to target late payments |
| (35 minutes later) | |
| A small business commissioner will help firms tackle the issue of the billions of pounds in late payments for goods and services, under government plans. | |
| It estimates small firms are owed £26bn in late payments - and chasing debts costs them millions of pounds more. | It estimates small firms are owed £26bn in late payments - and chasing debts costs them millions of pounds more. |
| Business minister Anna Soubry said the role would tackle the power "imbalance" between small and large businesses. | Business minister Anna Soubry said the role would tackle the power "imbalance" between small and large businesses. |
| The Federation of Small Businesses welcomed the move but said it must be properly funded and be high profile. | The Federation of Small Businesses welcomed the move but said it must be properly funded and be high profile. |
| Plans for a new small business conciliation service to help settle disputes - specifically over late payment - were announced in the Queen's Speech. | Plans for a new small business conciliation service to help settle disputes - specifically over late payment - were announced in the Queen's Speech. |
| The service aims to handle problems without the need for court action. | The service aims to handle problems without the need for court action. |
| 'Culture change' | 'Culture change' |
| As part of the new Enterprise Bill, the government also wants to create a commissioner role to deal with outstanding payments and supply-chain bullying, where suppliers are forced to cut their prices in order to retain the custom of much bigger firms. | As part of the new Enterprise Bill, the government also wants to create a commissioner role to deal with outstanding payments and supply-chain bullying, where suppliers are forced to cut their prices in order to retain the custom of much bigger firms. |
| It said the commissioner would: | It said the commissioner would: |
| In a consultation published online, Ms Soubry said small firms were responsible for 48% of UK private sector employment and were vital to economic growth. | In a consultation published online, Ms Soubry said small firms were responsible for 48% of UK private sector employment and were vital to economic growth. |
| She said she wanted the commissioner to bring about a "long-lasting culture change", helping to settle disputes quickly and cheaply. | She said she wanted the commissioner to bring about a "long-lasting culture change", helping to settle disputes quickly and cheaply. |
| A similar role in Australia was having a real impact, she said, adding she hoped for the same "effective and fair solution here". | A similar role in Australia was having a real impact, she said, adding she hoped for the same "effective and fair solution here". |
| The consultation cited data suggesting more than half of cases handled by Victoria's small business commissioner were successfully resolved, at 30% or less of the cost of taking legal action. | The consultation cited data suggesting more than half of cases handled by Victoria's small business commissioner were successfully resolved, at 30% or less of the cost of taking legal action. |
| More than half of complaints were resolved within one week, and 80% within 12 weeks. | More than half of complaints were resolved within one week, and 80% within 12 weeks. |
| 'Limits growth' | 'Limits growth' |
| Ms Soubry said the culture of late payments to small firms was "simply unacceptable". | Ms Soubry said the culture of late payments to small firms was "simply unacceptable". |
| "It limits their growth and productivity, and can put an otherwise successful business at risk," she said. | "It limits their growth and productivity, and can put an otherwise successful business at risk," she said. |
| "The small business commissioner will tackle the imbalance of bargaining power between small suppliers and large customers, and encourage them to get round the table." | "The small business commissioner will tackle the imbalance of bargaining power between small suppliers and large customers, and encourage them to get round the table." |
| Ministers also called on businesses of all sizes to share their experiences with late payments and asked for their views on its proposals. | Ministers also called on businesses of all sizes to share their experiences with late payments and asked for their views on its proposals. |
| The Federation of Small Businesses, which represents small and medium-sized businesses and has more than 200,000 members, carried out a survey of members last year that suggested 51% had experienced late payment in the previous 12 months. | The Federation of Small Businesses, which represents small and medium-sized businesses and has more than 200,000 members, carried out a survey of members last year that suggested 51% had experienced late payment in the previous 12 months. |
| The federation said the move was encouraging but a culture of late payments had developed at board level in big companies. | The federation said the move was encouraging but a culture of late payments had developed at board level in big companies. |
| It also said the new commissioner should have the power to refer large debtors to the Competition and Markets Authority. | It also said the new commissioner should have the power to refer large debtors to the Competition and Markets Authority. |