Toby Perkins MP, Labour's Shadow Small Business Minister, commenting on BACS statistics on late payments to businesses, said:
"At a time when small businesses are struggling with a difficult economic climate, late payment damages cash flow and threatens firms’ survival. It is completely unacceptable that successful businesses should go under because they haven’t been paid on time.
"Ministers are out of touch with the needs of small businesses and must get a grip on this issue, which is becoming an ever greater problem. Instead, there has been chaos and confusion, with ministers U-turning twice on when a key EU directive on late payments will be implemented.
"Labour’s five point plan would help small businesses now by giving tax breaks to small companies taking on extra employees and introducing a temporary VAT cut to get the economy moving again. As Labour sets out the role of government in sticking up for the tens of thousands of good British businesses our policy review will look at what more a Labour government could do to protect firms from the scourge of late payments and the potentially catastrophic consequence on business cashflow."