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Late Payment Still Big Problem for British Businesses

The latest British Chambers of Commerce (BCC) Monthly Business Survey for May, reveals the extent of the problem businesses face with late payment.

The survey of 430 companies across the UK shows that half of businesses feel payment times are taking longer, emphasising the continued pressure on cash flow.

Other key findings in the survey include:

• A month on from the Chancellor’s Budget, respondents were asked to award the measures a mark out of ten. Over one-third of respondents awarded the lowest mark of one, with the average score only slightly better at 2.6.
• In a sign of increasing business confidence, company turnover expectations for the next three months have all improved. 30% of firms now expect turnover to improve by 0-25%, which is up from 22% in January’s monthly survey.
• 30.9% of firms will attempt to recruit in the next three months while 69.1% will not.
• One in ten businesses are spending over 20 hours every week complying with employment law.

David Frost, Director General of the British Chambers of Commerce (BCC) said:

“These results show just how tough cash flow conditions are, with half of businesses hamstrung by increasingly late payments. The knock-on effect is that under a third of employers are planning to recruit over the next three months.

“More needs to be done to improve company cash flow and prevent the steady rise in unemployment. It is clear from this poll that the help on offer in the Budget fell short of many businesses’ expectations. Announcing a moratorium on new employment law and scrapping the planned rise in national insurance would certainly send a signal that the government is serious about supporting jobs.”

The Forum of Private Businesses (FPB) recently also found in a survey that late payment was a big problem for its member and is campaigning for more large businesses to sign up to the Government’s Prompt Payment Code.

If you are owed commercial debts and would like advice on debt recovery or litigation, please contact our debt recovery department on 0161 785 3500 or email.

Alternatively, click here to contact a specialist litigation solicitor.christopher.burke@pearson-hinchliffe.co.uk

Pearson Hinchliffe Commercial Law | Hollinwood Business Centre, Albert Street, Hollinwood, Gtr Manchester, OL8 3QL
Telephone: +44 (0)161 785 3500, Fax: +44 (0)161 624 2589, Email: enquiries@pearson-hinchliffe.co.uk