New complaints process to secure fair treatment for small firms in the West Midlands

Those firms are in the firing line of a so-called 'poor payments' crisis, with bigger firms using their muscle to delay payments they owe to small firms for months on end.

A third of payments to small businesses are late and one in five firms have run into cash flow problems as a result. If they were paid on time it is estimated it would boost the UK economy by around £2.5 billion a year.

Paul Uppal, the former Tory MP for Wolverhampton South West, was appointed the UK's Small Business Commissioneer in October. Now, from his Birmingham base, he has today been given the power to deal with complaints.

Regulations made by Small Business Minister Margot James – the MP for Stourbridge – mean the Commissioner can now handle complaints from small businesses about unfair payment practices. The Commissioner’s website is also live, providing guidance to small businesses on payment issues including how to take action if a payment is overdue.

Margot James, said: “This Government’s Industrial Strategy is building a Britain in which small business can continue to thrive.

“The West Midlands now has an extra 37,200 small businesses since last year – the biggest proportionate increase in the UK. Today’s Small Business Commissioner service will empower these businesses to take action if they are paid late, potentially delivering a £2.5 billion annual boost to the economy.”

Paul Uppal said: “Having run my own small business for over 20 years I am well aware that integrity and trust are key to running and building a successful business. My mission is to help all small businesses nurture positive and lasting relationships with their customers that work in the best interests of both.

“Today I am launching a new website so small businesses know their rights, as well as how to contact me if they need further action to be taken when the larger businesses they supply owe them money.”

Mike Cherry, national chairman of the Federation of Small Businesses and a Staffordshire business owner, said: “The UK is gripped by a poor payments crisis, over 30 per cent of payments to small businesses are late and the average value of each payment is £6,142. This not only impacts on the small business and the owner, it is damaging the wider economy.

“The Small Business Commissioner is crucial to turning the tide on this late payments culture. FSB will be encouraging small businesses affected to use the service, and we hope then to see clear actions taken to tackle the worst examples of supply chain bullying. Success will be a UK economic culture where a business that does a job promptly, is paid promptly.”

The Small Business Commissioner’s website guides small businesses on how to “check, chase, and choose” how to deal with unfair and late payments:

* Check if the right information has been provided to the right people in order for an invoice to be paid

* Chase effectively when a payment is overdue

* Choose how to take further action, including the option of submitting a complaint to the Small Business Commissioner

It is one of a number of measures Government says it is taking to tackle a late payment culture.

Regulations came into force in April 2017 requiring large businesses to publically report the average time they take to pay their suppliers. This allows suppliers, including small businesses, to make informed decisions about who they do business with.

Firms can check when large businesses pay their suppliers on GOV.UK. So far over 200 of the UK’s largest businesses have submitted payment reports.

Small businesses who wish to make a complaint can visit www.smallbusinesscommissioner.gov.uk and complaints can be submitted to complaints@smallbusinesscommissioner.gov.uk