Self-employment body welcomes simplification of procurement process and action to tackle late pay
IPSE, the Association of Independent Professionals and the Self Employed, has welcomed government plans to simplify the procurement process to tackle the “endemic” problem of late pay.
The government aims to give small businesses a boost by protecting small companies from long payment delays through plans to implement EU rules on the procurement process. Cabinet Office Minister, Francis Maude, said legislation would be introduced to mandate 30-day payment terms throughout the supply chain for public sector contracts. Maude also committed to removing pre qualification questionnaires (pqqs), a simplification IPSE called for in its manifesto.
Andy Chamberlain, deputy director of policy and external affairs, IPSE, said: “Any action to make it easier for the smallest businesses to gain government contracts should be welcomed. Simplifying the procurement process by removing PQQs is long overdue and is crucial to create a level playing field for the UK’s smallest businesses to win government contracts.
“Late payment is a major issue for microbusiness owners up and down the country who rely on regular income to keep their business afloat but chasing payment puts future contracts in jeopardy.
“Although policies to tackle late pay should be welcomed, the problem won’t disappear until tough action is taken to change the whole culture of pay by big business. In our recent manifesto, we called for a small business conciliation service which would allow self-employed professionals to receive payment without the need for lengthy court action. This would go a long way to stop the endemic problem of late pay and we’re delighted the Conservative Party has committed to implementing this. We hope all political parties will commit to cutting red tape in the procurement process and tackling late payment ahead of May’s general election.”