Credit, Collections & Insolvency News
The Government has announced the appointment of Liz Barclay as Small Business Commissioner to spearhead the national effort to crackdown on delayed invoices, which cause thousands of small businesses to close every year.
Barclay will be the first female Small Business Commissioner, a post which was created in 2016 to help small businesses secure the payments owed to them and to galvanise UK businesses behind a new culture of prompt payment.
Over £23.4 billion is owed in outstanding invoices to UK businesses. Some businesses wait several months before paying their suppliers, severely impacting the bottom line of many small businesses.
Small businesses account for two-thirds of UK private sector employment and more than half of business turnover. Late payments damage their income, which can hold back investment or job creation and, in the worst cases, lead to job losses and business closures.
Action to help businesses and stop this damaging practice will remain a key priority as the government looks to support small businesses and build back better from the pandemic.
Liz Barclay said “We need a real culture change around business payments in the UK to take pressure off our phenomenal entrepreneurs. People who have already delivered goods and services have to be able to turn their attention to their next client and next order rather than chasing up late payments and worrying about their cashflow. I know from personal experience how damaging that can be to mental and emotional health.”
“By working with businesses and ensuring their concerns are listened to I hope to be able to deliver a payment regime that keeps cash flowing and works for everyone.”
Small Business Minister Paul Scully said “Having run small businesses for most of my professional life I know just how toxic delayed invoices can be, causing needless uncertainty as business owners chase payments which should have been made weeks or even months ago.”
“I thank Phillip King for his work tackling this issue as interim Small Business Commissioner and I welcome Liz Barclay to this hugely important role, driving the positive change we need to see and standing up for our hard-working small businesses.”
Barclay’s appointment is the latest in a suite of actions that the government has taken to address the issue of late payments. ast year, the government consulted on new powers for the Commissioner, including the power to order payments, levy fines and open investigations based on third-party information. The responses to the consultation and further proposals will be published in due course.
In January this year, the government also announced reforms to the Prompt Payment Code, a voluntary scheme whereby businesses commit to paying their partners in good time, driving further culture change and encouraging businesses to address their practices.
The government is committed to backing the UK’s small businesses and has provided unprecedented support throughout the pandemic. Further support announced in the Budget earlier this month includes:
Commenting on the appointment Joanna Elson CBE, Chief Executive of the Business Debtline, said “I can think of no better choice to be the UK’s Small Business Commissioner than Liz Barclay. Liz’s long-standing passion for advocating on behalf of small businesses means she undoubtedly brings the confidence of the small business sector to this role – which has never been more important than in the wake of Covid-19.”
“Late payments are a problem affecting around half of the small business owners we help at Business Debtline – and the issue is being exacerbated by the economic impact of the pandemic. We look forward to continuing to work with the Small Business Commissioner team to help address this problem, which is crucial for the UK’s economic recovery.”
“Liz has also been an outstanding Ambassador for the Money Advice Trust, focusing particularly on supporting our work at Business Debtline – and while she is rightly now stepping down from that voluntary position, I am pleased that we will continue to work together in this new capacity.”
“I would also like to thank the interim Small Business Commissioner, Philip King, for his tireless work in the role over the last 14 months – including supporting small business owners through the immediate wake of the Covid-19 crisis. It is clear that his work has put the organisation in a strong position to do even more to tackle this problem in the years ahead.”
