§ Mrs. Curtis-ThomasTo ask the Secretary of State for Trade and Industry if he will estimate how many businesses have benefited from the provisions of the Late Payment of Commercial Debts (Interest) Act 1998. [123562]
§ Mr. Alan JohnsonSmall firms responding to a survey in late 1999 by the Credit Management Research Centre at Leeds University Business School were asked if they had used the Late Payment of Commercial Debts (Interest) Act 1998 since its introduction.
5 per cent. of small firms who responded stated that they had used the legislation, up from 3 per cent. in the previous six months. 11 per cent. stated that they were planning to use it.
We are also monitoring the effect on the Act on payment times in the UK. Recent research published in the Grant Thornton European Business Survey confirms that the average payment period for sales invoices in the UK now stands at 45 days, against an EU average of 54 days, identifying a downward trend in UK payment times in recent years.