Simple Step 3

LA has already stated that he is not one for regulation or legislation. It should only be the last resort.

The current crisis is seeing SME's the life blood of our nations economy hit hard. Order books slow, banks wont lend and debtors wont or cant pay.

Large organisations are better able to negotiate with banks, they can fund themselves in many different ways, especially if listed. The other thing they can do, and are increasingly doing so, is bullying their suppliers.
If large corporates call up smaller businesses and say, your on 60, or even 90 days terms now, like it or lump it, SME's are stuck. This eases the lending of the large business and puts the burden on the small business, a business that is not in a position to negotiate effectively with banks. This is not theory, this is the current reality. LA is hearing of cases daily. (sometimes 120 days)
Ministers who really dont know anything of the real business world claim that the Late Payments Act should prevent this. Rubbish, any supplier that uses the act ceases to be a supplier.

It is this squeeze down the fiscal food chain that will bring about economic collapse.It prevents the free flow of money across markets.

Sadly the answer is Legislation.Any organisation that turns over more than £100m pa must pay a 10% above base fine to the treasury on every invoice not settled within 30 days. Any disputed invoices do not count, authentication of disputes must be dealt with at audit, any that are deliberately put as disputed to delay payment when there is no problem will lead to a putative fine.
This act to have a 2 year sunset clause.

This would mean the small business is not "blamed", and will get paid.
This will have no fleeing the country effect as these large companies have to deal with their UK suppliers on the whole. Any business fleeing indicates they have dubious practices or financial woes.

This is another "Free to the Treasury" plan, infact it may generate income that should be ring fenced for business.

Again LA would push for this legeslation to be brought in before Christmas.

LA