By Jonathan London on 9th December 2014

IPSE supports small business conciliation service

New government plans to create a small business conciliation service which will focus on resolving late payment problems has been very much welcomed by the Association of Independent Professionals and the Self Employed (IPSE).

The announcement of the conciliation service was made on Saturday December 6th by the secretary of state for culture, media and sport, Sajid Javid, who is also the MP for Bromsgrove.

The service will essentially look to aiding freelancers, contractors and the self employed, as well as small businesses when it comes to late payment issues and hopefully being able to sort out any disputes without need to administer any court action.

News of this new service was welcomed Simon McVicker, the director of policy and external affairs at IPSE, who said that at present: “Late payment is a crippling issue for the UK’s smallest businesses. The current catch-22 situation means that micro businesses are often unable to chase clients for payment that isn’t forthcoming for fear of damaging important business relationships

“Introducing a small business conciliation service to resolve disputes will go a long way in helping freelancers get the payment they deserve without lengthy court action,… he added.

Mr Javid announced that a number of measures which would be introduced to deal with the issue would include ‘naming and shaming’ people who fail to pay on time, making sure that 30 day payment terms are properly put into place throughout the supply chain in government contracts. A survey will also be introduced to strengthen the Prompt Payment Code.

“IPSE’s recent manifesto called for a small business conciliation service to ensure small businesses get a fair deal and we’re delighted that the Government has acted on our proposal.

“I also welcome the other measures outlined in Sajid Javid’s speech and also called for in IPSE’s manifesto. In particular, ensuring 30 day payment terms in public sector contracts and naming and shaming the worst offenders further demonstrates a commitment to rid the UK business landscape of this issue once and for all,… added Mr McVicker.

Jonathan London Written by Jonathan London

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