By Jonathan London on 26th February 2015

IPSE welcomes government action on late payments

The Association of Independent Professionals and the Self-Employed (IPSE) has announced its approval of the government’s plans to face the late payments issue and to make the procurement process more simple.

Francis Maude, the cabinet office minister, stated yesterday (February 25th) that the government was looking to offer small businesses a helping hand by protecting them from tedious payment delays by implementing EU rules on the procurement process.

The legislation would be introduced so that 30-day payment terms would be mandated right down the supply chain….

Andy Chamberlain, deputy director of policy and external affairs at IPSE, welcomed this news and said: “Late payment is a major issue for microbusiness owners up and down the country who rely on regular income to keep their business afloat, but chasing payment puts future contracts in jeopardy.…

The IPSE was also happy that the government was planning to remove pre qualification questionnaires (PQQs), which is something that the body has spoken out about before.

“Any action to make it easier for the smallest businesses to gain government contracts should be welcomed. Simplifying the procurement process by removing PQQs is long overdue and is crucial to create a level playing field for the UK’s smallest businesses to win government contracts,… Mr Chamberlain said.

However, while the news is clearly a step in the right direction, and Mr Maude stated he is proud of the government’s reforms, the IPSE pointed out that there is more that still needs to be done to really tackle the late payments issue.

“Although policies to tackle late pay should be welcomed, the problem won’t disappear until tough action is taken to change the whole culture of pay by big business,… Mr Chamberlain added.

With the general election creeping up, Mr Chamberlain also made the point that the IPSE hopes all political parties will commit to cutting red tape in the procurement process and tackling late payment ahead of May’s general election.…

If you’ve had trouble with your own late paying clients, here’s some advice on how to deal with it.

Jonathan London Written by Jonathan London

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