Tuesday 10th December, 2013

The Government has announced measures during last weekend’s Small Business Saturday to help small businesses, including faster broadband and moves to tackle late payments. The announcement is aimed at removing some of the barriers faced by small businesses, improve the business environment and make it easier for them to fulfil their potential.

Business Secretary Vince Cable said: Small and medium sized companies up and down the country often raise the issue of late payment with me. Cashflow is critical to the good functioning of daily business. If bills are not paid on time this can threaten the survival of otherwise healthy businesses. We are enforcing prompt payment throughout the public sector and asking what more we can also do to get credit flowing in the private sector.

The commitment for tackling late payment in small firms consists of – ensuring that from now on all small businesses who supply the public sector in a supply chain will be paid at the same time as we pay our big contractors. And consulting on new measures to tackle late payment in the private sector.

The government is also investing an extra £250 million in the British Business Bank which I established last year to help SMEs access finance through challenger banks or alternative funding providers, such as angel investors or crowd funding.

Enterprise and Skills Minister Matthew Hancock said: Small businesses are the lifeblood of the British economy and responsible for nearly half the job creation in the UK. That’s why we are removing barriers to growth and supporting them, so that they can create jobs and compete in the global race.