Public sector is the fastest payer

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The private sector should learn from the government on prompt payment, says the FSB

The public sector pays faster than the private sector, according to The National Audit Office which has published a report on payment practices.

Gordon Millward, regional chairman of the Federation of Small Businesses, said: “Many in the private sector still have a lot to learn about paying bills in good time, and the government has the opportunity to help teach them.

“This new report demonstrates the need to tighten up prompt payment practices right across the economy.

“Central government has raised its game and is recognising the priority of paying suppliers on time, making it a requirement to pay within 30 days. It now needs to use this record to improve the wider payment culture, both in the rest of the public sector and in the private sector.

“It’s a scandal that thousands of businesses have gone under because of late payment, with numerous others struggling with their cashflow because of poor payment practices.

“Signing the prompt payment code is essential.”