Prime Minister Theresa May must use her final days in office to push through reforms to tackle the problem of late payments, an influential UK business organisation said.
The Federation of Small Businesses has called on the Prime Minister to push through the reforms package announced in this year’s spring statement.
Concerns from the group comes after Rolls-Royce, Balfour Beatty and Persimmon were named and shamed for failing to meet toughened payment guidelines.
The businesses were among 20 firms either removed or suspended from the Prompt Payment Code (PPC), which requires those who sign up to pay 95% of all supplier invoices within 60 days.
Delivery firm DHL, tea business Twining and Company and manufacturer GKN also among those named in the clampdown.
The FSB said that “50,000 small firms a year are forced to close their doors” because of poor payment practices.
Reforms already taken by the Government have made “progress” but further reforms need to be delivered, the FSB said.
In the spring statement the Government promised payment reforms including making the audit committee of every large business responsible for its payment practices and strengthening the small business commissioner and PPC.
Mike Cherry, national chairman of the FSB, said: “As Theresa May’s time in office draws to a close, we are now at crunch time for the promised late payments package we have worked hard with the Government to secure.
“We are fast running out of time for the outgoing administration to secure this as their lasting and transformational small business legacy.
“What these firms need is one more push to get the changes that will turn the tide against this unjust and unfair behaviour.”