Labour unveils plan to crack down on larger businesses which delay paying suppliers

By City & Finance Reporter for the Daily Mail

Published: 16:57 EST, 15 February 2015 | Updated: 16:57 EST, 15 February 2015

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Tackling the issue: Shadow chancellor Ed Balls (left)

Labour has unveiled plans to crack down on larger businesses which delay paying their suppliers.

As part of its plans to woo the small business vote, shadow chancellor Ed Balls said a Labour government would force large firms to set out the extent of late payments they have been responsible for, and the action they have taken to compensate suppliers.

The Federation of Small Businesses has estimated that £40bn is owed to small and medium-sized business as a result of late payments, and said it is ‘genuine abuse’ for large companies to effectively use smaller businesses as a source of finance.

Big names found to have put suppliers under pressure include Premier Foods, John Lewis, Halfords, Home Retail Group and Debenhams.

Labour said it also plans to cut and then freeze business rates for 1.5m small business properties with rateable values of less than £50,000.