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[Business Advice]

Too little, too late? Spring Statement crack down on late payments in review

In today’s Spring Statement, chancellor Philip Hammond declared “The end of late payments could finally be in sight.” But what is the government actually doing about it?

Too little, too late? Spring Statement crack down on late payments in review

50,000 small businesses fold every year due to late payments. The trickle down effect on the UK economy is much farther reaching as SMEs famously employ 60% of the UK private sector workforce.

Following a campaigning push from the Federation of Small Businesses and other groups, Hammond confirmed today that the government would introduce tougher accountability measures to end the late payment crisis.

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The wider impact on SMEs

Businesses today operate at an international level, working with a network of suppliers across the globe. Any payment delays caused as a result of currency fluctuations, varied banking hours and time zones have huge implications for companies of all sizes. According to Centtrip CEO Brian Jamieson, resolving the issue of late payments could contribute £2.5 billion to the UK economy, so the sooner we can do it, the better.

Read the article in full: Business Advice

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