BusinessPeople In BusinessGovernment ‘guarantee’ lets down charities

Government 'guarantee' lets down charities

Barnardo's FD says government is not living up to promise to pay businesses within 10 days

The FD of the nation’s largest children’s charity has accused the government
of not paying its bills on time and breaking a commitment to help charities
during the recession.

Barnardo’s financial director Kevin Barnes said the government has not lived
up to its “guarantee” made in December 2008 to pay businesses within ten days.

Lord Mandelson promised to ensure prompt payment to give businesses a helping
hand in the recession. “The government has… guaranteed prompt payment of their
own bills, within ten days to businesses,” he said at the time.

But more than nine months on and Barnes claims that promise has been broken.
“Months on it is just unheard of,” he said. “The number of local authorities
that have even heard of that or want to hear of that or put it into practice is
minimal.”

Keith Hickey, chief executive of the Charity Finance Directors’ Group, said
public authorities must provide a level playing field for charities “in their
commissioning of public services by adhering to the spirit and principles of the
compact”.

Charities spoken to by Accountancy Age claim they are being squeezed
by public authorities, which demand caps on overhead costs and pension payments.

The Office of Government Commerce said it was on track to meet its targets. A
spokesman said 90% of invoices were paid in the ten day period across 18
departments and that suppliers can make complaints through the supplier feedback
service.

Further reading

Profile:
Kevin Barnes, Barnardo’s FD

Related Articles

Shortlist announced for British Accountancy Awards 2017

Accounting Firms Shortlist announced for British Accountancy Awards 2017

4m Emma Smith, Managing Editor
Pimlico Plumbers to take employment case appeal to Supreme Court

Legal Pimlico Plumbers to take employment case appeal to Supreme Court

4m Alia Shoaib, Reporter
HMRC appoints new director generals

HMRC HMRC appoints new director generals

5m Alia Shoaib, Reporter
Submit your entry for the British Accountancy Awards!

People Business Submit your entry for the British Accountancy Awards!

6m Emma Smith, Managing Editor
BDO appoints two non-executive directors as advisers to leadership team

Accounting Firms BDO appoints two non-executive directors as advisers to leadership team

6m Emma Smith, Managing Editor
Ex-HMRC chief to join ICAS council

HMRC Ex-HMRC chief to join ICAS council

8m Emma Smith, Managing Editor
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Settlement reached between Margaret May and CIMA

Accounting Standards Settlement reached between Margaret May and CIMA

11m Stephanie Wix, Writer