Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what evidence base the Government used in reaching the decision to provide a £1 million business fund for the use of technology to help reduce late payments.

A £9 million Business Basics Programme was announced in the Industrial Strategy, to test innovative ways of encouraging SMEs to take up the proven technology and business practices that can boost productivity. I announced in the recent Government Response to the Call for Evidence on Creating a Responsible Payment Culture that, as part of that Programme, we will launch a Business Basics fund competition up to £1 million. This will provide funding to trial how to get businesses to take up proven technology and business practices, including a focus on payment technology.

Government has worked closely with trade bodies and businesses to develop this. Mike Cherry, FSB National Chairman, said of the recent announcement: “Small businesses will be delighted with today’s announcement” and “the measures today could finally see an end to poor payment practice. Changing our business culture will boost the small business community, productivity and growth.”