Government Small Business Plan: CIPR cautiously welcome efforts to tackle late payments
The Chartered Institute of Public Relations (CIPR) has welcomed government plans to tackle late payments if plans outlined in its new Small Business Plan are implemented correctly.
The Plan - published late last week - announced a series of new reforms to support small businesses. It included measures to introduce new laws on late payments alongside a series of financial support packages and mentoring programmes for small businesses.
Under the new legislation, the Small Business Commissioner will receive enhanced powers to impose significant fines against large firms that repeatedly pay suppliers late.
The Government says its plan will introduce maximum payment terms of 60 days, reducing to 45 days, with mandatory interest charges for late payments and a 30-day invoice verification period to speed up dispute resolutions.
The PR industry could benefit significantly from these long-overdue reforms with the right implementation. Late payments have been a constant source of irritation and anxiety in our industry, forcing individuals and businesses to spend valuable hours chasing invoices rather than delivering work for their clients.
The government's commitment to tackling late payments, combined with enhanced access to finance and reduced administrative burdens, is welcome. However, for it to contribute to the conditions the sector needs to succeed, a robust delivery mechanism must be in place.
The CIPR represents thousands of PR professionals in small agencies and freelance practice who want to see reforms that are timely, properly funded, and underpinned by metrics that demonstrate measurable impact against clear goals and guard against unintended consequences.
We're pleased to see the government recognise the importance of supporting small businesses and will work with members and the industry to measure how these new rules are being enforced.
At the same time, our freelance and small agency members are also keen to see effective government action on the more challenging trading conditions in the wider economy in recent months.
About the Chartered Institute of Public Relations
Founded in 1948, the Chartered Institute of Public Relations (CIPR) is the world\'s only Royal Chartered professional body for public relations practitioners with over 11,000 members.
The CIPR advances professionalism in public relations by making its members accountable to their employers and the public through a code of conduct and searchable public register, setting standards through training, qualifications, awards and the production of best practice and skills guidance, facilitating Continuing Professional Development (CPD), and awarding Chartered Public Relations Practitioner status (Chart.PR).