The Liberal Democrats have launched calls for the Government to take action on big businesses failing to pay smaller enterprises on time.
The Liberal Democrats' Business Spokesperson, Sarah Olney, has written with widespread cross-party support to the Chancellor calling for the Prompt Payment Code to become compulsory. This would end large companies ability to "hoard cash when their suppliers are struggling", leaving suppliers in a "perilous position".
Further to the letter, Sarah Olney said:
“Small businesses are the bedrock of our economy and our communities. With so many of them struggling due to slow or indefinitely delayed payments from large customers, they risk going under if the Government fail to act.
“We all know how critical cashflow is to small enterprises. That is why the Liberal Democrats have long called for the Prompt Payment Code, a voluntary set of principles for reasonable payment terms, to be made completely compulsory. The coronavirus crisis however has now put this at the top of the agenda - the need to enforce these standards is more urgent than ever.
“The Chancellor has shown willingness to take steps to support businesses through this crisis, but more must be done. It is time this Government ensured large companies were not only held to account, and but that they behave responsibly during this crisis, otherwise we face watching thousands of small businesses close their doors for good.”