UK public bodies sway European Parliament to reject late payment penalties
Slow trade payments are a scourge affecting the cash flows of countless British businesses. Government recognised this problem during the credit crisis, even pledging last year that Government departments would help by paying trade invoices to suppliers of goods and services within 10 days of receipt.
Call me a cynic, but I thought Lord Mandelson’s promise was going to be a tough one to deliver on.
Now I read that a European Commission proposal to impose greater fines on public bodies that pay bills late was defeated in the European Parliament last week- get this- after lobbying by UK local authorities and the NHS!!
The Local Government Association in the UK said that had the proposal gone through, costs could have risen to 600 million GBP as the EC move could have encouraged businesses that don’t impose interest payments on late bills now to start doing so.
LGA improvement board chair David Parsons called the rejection of the proposal ” a victory for common sense”. An NHS director added that the proposal would have placed “unnecessary costs on the health service at a time when budgets are already under pressure”.
So, if you are a small company having difficulty in extracting payment on time from tardy customers, it doesn’t look like you’ll get a sympathetic ear from some public bodies- despite government rhetoric to the contrary.
More about:
The numbers you crunch tell a story. Your expertis...
14yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleIt is with great sadness that we announce that Martin Williams has sadly passed away. Accountancy Age staff would like to extend their deepest sympath...
View articleCredit inspectors should act on tardy payers, says Martin Williams Read More...
View articleManufacturing and services industries need to step up the pace as high street spending slumps Read More...
View articleSMEs will also find it hard recouping payment from big clients - but there are ways to improve the situation Read More...
View articleMartin Williams bemoans government procrastination in appointing a grocery adjudicator Read More...
View articleThank goodness the EU Council is blocking proposals to lower accounts filing limits, says Martin Williams Read More...
View articleMartin Williams attempts to explain why insolvency stats are muted - and why they could stay that way Read More...
View articleThe Police finally taking fraud seriously, says Martin Williams Read More...
View article