170. The issue of late payments is not limited to Carillion. Ahead of the 2018 Spring Statement, the FSB published research showing 84% of small firms report being paid late, with 37% finding that agreed payment terms have lengthened in the past two years, hampering cash flow. Only 4% see payment terms improving.483 We welcome the Chancellor's subsequent call for evidence on late payments in his statement;484 however, this is little comfort for Carillion's suppliers and for others whose businesses are put at risk by late payers. The BEIS Committee will be considering the effectiveness of the Prompt Payment Code and its enforcement as part of its ongoing inquiry into small businesses and productivity.485
____________________________________________________________________
483 Federation of Small Businesses, Small firms urge Chancellor to speak out on late payment crisis costing economy billions, accessed 23 April 2018
484 HC Deb, 13 March 2018, col 720
485 Business, Energy and Industrial Strategy Committee, Small businesses and productivity inquiry, accessed 25 April 2018