Early payment boost for council and firms

Councillor Jim McMahon

AN early payment initiative devised by Oldham Council and since adopted by many other councils has helped boost the local economy by £75 million.

Suppliers to the council are paid earlier than the contractual payment date in return for a small discount, so business cashflow is improved and the council’s bills reduced. Almost 300 local firms have now signed up to the scheme.

Council leader Jim McMahon said: “We know we need to make every pound we spend go even further, so we focus on delivering social value.

“We select suppliers for every contract now based on what they’ll do for our local economy — like paying residents fair wages, caring for our environment and creating local jobs.”