Government keeps small firms waiting

Small firms are still being kept waiting for payments from Government departments, despite a pledge a year ago by Business Secretary Lord Mandelson that Government departments would pay trade invoices within 10 days.

Research recently carried out by credit reference company Graydon amongst 320 companies supplying government departments says that 98 per cent fail to get their money within the promised time frame and more than 60 per cent say they are paid later than 30 days after the invoice date.

Martin Williams, MD of Graydon said: "Was this government pledge another example of government rhetoric aimed at calming the nerves of the business nation in the midst of a severe recession, without any real hope of proving deliverable?

"Some would argue that this policy follows in the footsteps of the Top up Credit Insurance scheme and the Enterprise Finance guarantee Scheme - other "Made in Recessionary UK" products that really failed to deliver what they were meant to, to help the country through the downturn."