Responding to the report into small business productivity from the Parliamentary Business, Energy and Industrial Strategy Select Committee, FSB National Chairman Mike Cherry said:
“The UK’s economic success and productivity rests on the success of small and micro businesses. This report sets out a clear challenge to Government.
“Critically the committee is right to have identified that the issue of the UK’s poor payment culture is crippling for many small firms.
“FSB has long highlighted that some larger companies exploit the imbalance of power with small suppliers to impose unacceptable terms, exceedingly long payment periods and late payments.
“This sort of behaviour is unacceptable and this cross-party group of MPs has rightly challenged the Government. Eliminating the scourge of late payments would see 50,000 businesses saved each year, add £2.5bn to GDP, which would be a real boost to UK productivity.
“Government must respond to this report with tough action on late payments, supporting smaller businesses to further develop their leadership and management capability and to improve the adoption of basic digital technologies that small businesses need to grow and become more productive.”