The Association of Independent Professionals and the Self-Employed has today welcomed a report from a group of MPs calling for a clampdown on endemic poor payment culture that hits SMEs and freelancers.
Recommendations in the Business, Energy and Industrial Strategy Committee’s ‘Small business and productivity’ report, released today, include:
- Require all medium and large companies to sign the Prompt Payment Code, and adopt statutory payments terms of no more than 30 days;
- Give the Small Business Commissioner powers to fine persistent late payers.
Jordan Marshall, IPSE’s Policy Development Manager, said it was time to stop ‘Scrooging’ the self-employed. “Big companies must stop exploiting the self-employed and small businesses by treating them as an additional line of credit. Government and industry should treat this report as a wake-up call.
“It is totally unacceptable that larger companies are building late payment practices into their business models, something the MPs described as ‘a particularly disgraceful form of market abuse’.