Question

To ask Her Majesty’s Government what assessment they have made of the level of interdependence between small and large businesses; and how they plan to support businesses of all sizes.

We recognise that many small businesses engage with larger businesses, forming a valuable part of their supply chains. Strong and robust supply chains are vital to the continued growth of the UK economy and there are a number of activities underway across various sectors that seek to build capability and capacity in the supply chain, thereby supporting businesses and helping them to grow.

We are also clear that large companies should trade fairly with small suppliers and that is why we will shortly be consulting on proposals to establish a small business conciliation service to help small businesses resolve any disputes. For many small businesses, late payment of invoices is a particular concern and we have introduced a number of measures to help encourage larger businesses to pay on time. This includes a new reporting requirement on the UK’s 15,000 largest companies from 2016) to shine a light on poor payment practices, and a strengthened Prompt Payment Code to introduce a maximum 60 day payment term and allow a Code Compliance Board to challenge grossly unfair payment practices. We will also be consulting on giving wider powers to representative bodies to challenge grossly unfair terms.