UK GOVERNMENT MINISTRIES MISS TARGETS TO PAY BUSINESSES.
SCOTTISH GOVERNMENT FOCUSSING ON PROTECTING JOBS WITH PROMPT PAYMENT.
Official figures obtained by the SNP show UK departments are failing to pay suppliers within the government's own 10-day target at a time when it is crucial for businesses to have a steady cash flow in order to keep operating and to keep people in jobs.
The ten day target was introduced to try to help small businesses with cash flow during the recession, but parliamentary answers obtained by SNP Work and Pensions spokesperson, John Mason MP, have exposed concerns.
For example the Home Office pays only half of its suppliers’ on time, while the Ministry of Justice managed to settle just 66 per cent of outstanding invoices. In contrast more than 90 per cent of Scottish Government suppliers are paid within 10 working days, providing vital help for firms in a challenging economic climate.
Mr Mason said: "There is no excuse for these extraordinary failures by the UK government to meet its own ten day target and pay its bills on time - particularly in these troubled economic times when a speedy cash flow is important to many businesses.
This isn't simply about keeping the businesses afloat but keeping people in jobs. "Ministers must personally take action to improve the performance of their departments and guarantee prompt payment to suppliers. It is essential in the current economic circumstances that departments make an extra effort to meet payment targets.
People's jobs are dependent on a healthy and speedy cash flow for the businesses they work for. "The Home Office seems to be the worst offender - failing to pay half of its bills on time. What’s worse is that’s actually an improvement on last November when less than 20 per cent were being paid on time.
"This is a real embarrassment to Lord Mandelson as he talks about support for small businesses in Scotland. Businesses want less talk and more action.
"In contrast the Scottish Government is setting the benchmark by paying more than 90 per cent of suppliers within 10 working days - providing more vital help for firms in a challenging economic climate. "The Scottish Government’s prompt payment target complements other Scottish Government initiatives, like the full implementation of the Small Business Bonus Scheme, which is helping to improve companies' cashflow and release money to be ploughed back into their business, something clearly beneficial to the economy as a whole."
Details of Mr Mason’s parliamentary questions are detailed below:
1. Home Office John Mason: To ask the Secretary of State for the Home Department what percentage of its suppliers her Department has paid within 10 days of receipt of invoice in each of the last five months. [272249]
Mr. Woolas: The percentage of invoices paid within 10 days to small and medium enterprises (SMEs) in each of the last five months is as follows:
MonthPercentage of invoices paid to SMEs within 10 daysNovember 200819December 200827January 200927February 200936March 200950
2. Ministry of Justice
John Mason: To ask the Secretary of State for Justice what percentage of invoices from suppliers his Department paid within 10 days of receipt in each of the last five months. [271856]
Maria Eagle: The information requested is contained in the following table:
MonthPercentage aid within 10 day targetNovember 200864December 200859January 200955February 200967March 200966
3. Foreign and Commonwealth Office.http://www.theyworkforyou.com/wrans/?id=2009-05-07a.272250.h&s=section:wrans+speaker:14137#g272250.q0
4. Communities and Local Governmenthttp://www.theyworkforyou.com/wrans/?id=2009-04-30a.272251.h&s=section:wrans+speaker:14137#g272251.q0 5. Culture Media and Sporthttp://www.theyworkforyou.com/wrans/?id=2009-04-27a.270537.h&s=section:wrans+speaker:14137#g270537.q0 6. Northern Irelandhttp://www.theyworkforyou.com/wrans/?id=2009-04-27a.270538.h&s=section:wrans+speaker:14137#g270538.q0
The ten day target was introduced to try to help small businesses with cash flow during the recession, but parliamentary answers obtained by SNP Work and Pensions spokesperson, John Mason MP, have exposed concerns.
For example the Home Office pays only half of its suppliers’ on time, while the Ministry of Justice managed to settle just 66 per cent of outstanding invoices. In contrast more than 90 per cent of Scottish Government suppliers are paid within 10 working days, providing vital help for firms in a challenging economic climate.
Mr Mason said: "There is no excuse for these extraordinary failures by the UK government to meet its own ten day target and pay its bills on time - particularly in these troubled economic times when a speedy cash flow is important to many businesses.
This isn't simply about keeping the businesses afloat but keeping people in jobs. "Ministers must personally take action to improve the performance of their departments and guarantee prompt payment to suppliers. It is essential in the current economic circumstances that departments make an extra effort to meet payment targets.
People's jobs are dependent on a healthy and speedy cash flow for the businesses they work for. "The Home Office seems to be the worst offender - failing to pay half of its bills on time. What’s worse is that’s actually an improvement on last November when less than 20 per cent were being paid on time.
"This is a real embarrassment to Lord Mandelson as he talks about support for small businesses in Scotland. Businesses want less talk and more action.
"In contrast the Scottish Government is setting the benchmark by paying more than 90 per cent of suppliers within 10 working days - providing more vital help for firms in a challenging economic climate. "The Scottish Government’s prompt payment target complements other Scottish Government initiatives, like the full implementation of the Small Business Bonus Scheme, which is helping to improve companies' cashflow and release money to be ploughed back into their business, something clearly beneficial to the economy as a whole."
Details of Mr Mason’s parliamentary questions are detailed below:
1. Home Office John Mason: To ask the Secretary of State for the Home Department what percentage of its suppliers her Department has paid within 10 days of receipt of invoice in each of the last five months. [272249]
Mr. Woolas: The percentage of invoices paid within 10 days to small and medium enterprises (SMEs) in each of the last five months is as follows:
MonthPercentage of invoices paid to SMEs within 10 daysNovember 200819December 200827January 200927February 200936March 200950
2. Ministry of Justice
John Mason: To ask the Secretary of State for Justice what percentage of invoices from suppliers his Department paid within 10 days of receipt in each of the last five months. [271856]
Maria Eagle: The information requested is contained in the following table:
MonthPercentage aid within 10 day targetNovember 200864December 200859January 200955February 200967March 200966
3. Foreign and Commonwealth Office.http://www.theyworkforyou.com/wrans/?id=2009-05-07a.272250.h&s=section:wrans+speaker:14137#g272250.q0
4. Communities and Local Governmenthttp://www.theyworkforyou.com/wrans/?id=2009-04-30a.272251.h&s=section:wrans+speaker:14137#g272251.q0 5. Culture Media and Sporthttp://www.theyworkforyou.com/wrans/?id=2009-04-27a.270537.h&s=section:wrans+speaker:14137#g270537.q0 6. Northern Irelandhttp://www.theyworkforyou.com/wrans/?id=2009-04-27a.270538.h&s=section:wrans+speaker:14137#g270538.q0
Posts
No comments:
Post a Comment