January 10 2015
In a report on the payment performance of government departments, the National Audit Office has found that progress to meet the government's stated goal of paying 80% of undisputed invoices within 5 days is not helping smaller businesses. The report found that government departments are instead counting large numbers of low-value electronic payments to large contractors towards meeting their targets.
Amyas Morse, Head of the National Audit Office, said:
"UK businesses told us they welcome the government’s commitment to pay invoices early. However, there has been a disappointing lack of effort by government to check whether the implementation of the policy is actually helping SMEs."
Samantha White, CEO of My Credit Controllers, said:
"The smaller businesses that the policy was intended to help are finding themselves at the back of the queue for payment, yet again. Government should be setting a positive example towards the private sector in making sure that SMEs are not harmed by overdue payments."
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