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Sajid Javid, Secretary of State for Culture, Media and Sport, has announced that a conciliation service will be set up to help freelancers, self-employed people and other small businesses resolve disputes around payment without court action.
This has been welcomed by small business groups including IPSE, who represent the self-employed and freelancers.
Simon McVicker, Director of Policy and External Affairs at IPSE, said: “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. When it comes to payment, big businesses have long had their smaller providers over a barrel. 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.
“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. It's great that the Government is going so far to help the self-employed and shows decision-makers are sitting up and listening to independent professionals.”
Survey
New results of a survey conducted shows overwhelming support from the general public for more to be done to tackle late payment. The research asked a cross-section of 1,000 ‘traditionally’ employed and self-employed people living in the UK’s 40 most marginal constituencies about their views on the issue.
The results show 79 per cent of respondents support strengthening rules to help prevent small businesses being paid late, while 78 per cent of people support developing a way for small businesses and the self-employed to settle disputes without going to court. Just five per cent of respondents were against stronger measures to combat late payment.
Simon McVicker said: “Our research shows overwhelming support for measures that will change the culture around payment in this country. The majority of the respondents to this survey are not self-employed but still strongly agree that more should be done to combat this issue, showing the strength of feeling among the general public about a practice that is completely unfair and totally unnecessary.
“Mr Javid’s announcement shows positive action in line with public opinion and shows the Government understand the issues that independent professionals face. It is my hope that it signals the beginning of the end for late payment and it should be welcomed by microbusiness owners up and down the country.”
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Susie Hughes © Shout99 2014
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