Late paying as bad as tax evasion - MP

LABOUR MP Debbie Abrahams has spoken up for the self-employed and small businesses — describing late payments to them as being as unacceptable as tax evasion.

The Oldham East and Saddleworth MP took part as a panellist in a Demos think-tank event in Manchester.

The MP, who has made tackling late payment to small businesses one of her top 10 priorities and created the award winning Be Fair – Pay on Time campaign, said: “The Going it Alone project is important as there are now 4.6 million people who are self-employed, a 40-year high. Of the 1.1 million new jobs since 2008, 732,000 are in self-employment.

“The self-employed are being particularly affected by the cost of living crisis. One of the main problems is the issue of late payment and how this can slow the growth of, and even destroy, a business.

“One of the points I made in the Demos session was that the UK is different from Europe and the US in that it is socially acceptable to pay sub-contractors late here. Late payment reflects the culture of a company and, ultimately, this is down to the company’s leadership.

“The Government’s Small Business, Enterprise and Employment Bill doesn’t address this and we need to make sure it does. I will be tabling amendments to address this and other issues as the bill proceeds through the House.”