Late payments can be damaging for small businesses and the self-employed, who are more likely to be impacted by cash flow problems.
A third of payments to small businesses are late and the average value of each payment is £6,142, according to the Office of the Small Business Commissioner [1].
Its research found that if small businesses were paid on time, this could boost the economy by an estimated £2.5 billion annually.
The most immediate impact of late payments is a contribution to cash flow problems, which can affect businesses’ ability to pay bills and their own suppliers [2].
The uncertainty caused by unpredictable payment times can make it more difficult for small businesses to invest and grow.
The London Assembly Economy Committee will meet tomorrow to examine the causes and impacts of late payments to small businesses and the self-employed in London, including what action the Government is taking.
It will also consider what action the Mayor is taking to address the issue, in both the wider London economy and through procurement at the Greater London Authority (GLA).
The guests are:
- Liz Barclay, Small Business Commissioner
- Howard Dawber, Deputy Mayor for Business, GLA
- Alex Conway, Assistant Director, Economic Development and Programmes, GLA
- Kate Dearden, Head of Research, Policy and External Relations, Community Trade Union
- Abdul R Shiil, Co-Founder and Director, Sahan Cares
- Laura Timm, Greater London Representative, England Policy Unit, Federation for Small Businesses
The meeting will take place on Tuesday 6 February 2024 from 10am in the Chamber at City Hall, Kamal Chunchie Way, E16 1ZE.
Media and members of the public are invited to attend.
The meeting can also be viewed LIVE or later via webcast or YouTube.
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Notes to editors
- Small Business Commissioner
- Federation of Small Businesses, Time is Money: The case for late payment reform, March 2023, p. 12
- Full agenda papers.
- Marina Ahmad AM, Chair of the Economy Committee, is available for interview.
- Find out more about the work of the Economy Committee.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For more information, please contact Emma Bowden in the Assembly Media Office on 07849 303897. For out of hours media enquiries please call 020 7983 4000 and ask for the Assembly duty press officer.