July 21, 2024

ACCA comments as government acts to back small businesses and tackle late payments

ACCA Cymru/Wales has today welcomed government proposals to back small businesses and tackle late payments.

Lloyd Powell, head of ACCA Cymru/Wales, said:

“As we have made clear in our response to government consultations, we welcome any move to help tackle the late payment crisis for businesses in Wales.

“Being paid on time is crucial for small businesses to thrive. Recent ACCA research highlighted the challenges SMEs across the UK face accessing finance, including the critical impact late payment has on cashflow. So we welcome the government’s announcement of further action to tackle poor payment practices.

“In our response to the government’s consultation earlier this year we underlined the key role the Small Business Commissioner plays as an external champion shining a light on unfair treatment of SMEs. We called for the Office of the Small Business Commissioner to be strengthened, so we warmly welcome plans for additional powers.

“Strengthening the regulatory regime, including payment performance obligations, is a key piece of the late payment puzzle, enabling better transparency on the performance of suppliers. However additional action, such as continued education, will be required until new legislation can be put in place. Accountants in Wales – as key advisors to small business – as well as professional bodies like ACCA, have an important role to play in sharing our experience and expertise but a collective effort is now required to change the UK’s late payment culture.”