UK councils and health trusts quizzed over small business payments

Every council and health trust in the UK is being asked to submit details of how long they take to pay their suppliers, it has been revealed.

The Forum of Private Business (FPB) is requesting the records under the Freedom of Information Act after its members have repeatedly complained about late payments. The move will involve contacting more than 700 organisations and should give the FPB a better idea of how small businesses are being treated.

Last year, the Government called on councils and health trusts to pay their suppliers within 10 days in a bid to tackle the effects of the recession on small business. The Forum of Private Business has said that some smaller businesses are afraid to raise the issue for fear of losing work. Matt Goodman, FPB Policy Representative, commented:

"By finding out this information, we will be fighting their corner for them and putting pressure on any councils or trusts who aren't paying in good time to change their ways. But we'll also use it to highlight those who are helping small businesses in their areas by paying promptly.

"We're asking the councils and health trusts both to tell us what their standard payment terms are and also to provide figures showing how many of their suppliers were paid within 10 days, 30 days or longer over the most recently available 12-month period.”

28/08/09