Late Payment (Hansard, 26 February 2002)

§ Ian Lucas
To ask the Secretary of State for Trade and Industry what her estimate is of the amount of interest that has been paid(a) in total and (b) to SMEs as a result of the Late Payment of Commercial Debts (Interest) Act 1998. [36566]

§ Nigel Griffiths
The Department does not hold this information, because there is no requirement for businesses to report such amounts to the Department.

§ Ian Lucas
To ask the Secretary of State for Trade and Industry what assessment she has made of the impact of the Late Payment of Commercial Debts (Interest) Act 1998. [36565]
1123W

§ Nigel Griffiths
This Act is part of a package of measures that the Government have put in place to change the late payment culture here. The Credit Management Research Centre (CMRC) based at Leeds University has been monitoring late payment activity in England since 1998.
The CMRC reports show that there has been a fall of almost 7.5 per cent. in the percentage of payments that are reported as being late by the businesses that they survey. This fall relates to the period between their first survey and the survey for the quarter ending June 2001. During the same period the number of debtor days for small businesses has fallen by almost 24 per cent. and the mean number of debtor days for all businesses has fallen by almost 20 per cent.
Finally, the "European Business Survey" for 2001, produced by the accountants Grant Thornton, shows the UK as having a payment period almost a week (five days) shorter than the EU average (52 days).

§ Ian Lucas
To ask the Secretary of State for Trade and Industry if she plans to introduce further measures to prevent delays in paying commercial debts. [36564]

Businesses (number) Annual change (percentage)

Size (number of employees) 1997 1998 1999 1997 1998 1999

North East

0–49 95,990 98,005 90,160 ¹— 2.1 -8.0

50–249 925 905 885 ¹— -2.2 -2.2

250–499 130 120 110 ¹— -7.7 -8.3

500 plus 105 110 100 ¹— 4.8 -9.1

North West

0–49 380,325 352,620 352,740 ¹— -7.3 0.0

50–249 2,935 2,845 2,730 ¹— -3.1 -4.0

250–499 380 360 330 ¹— -5.3 -8.3

500 plus 355 365 375 ¹— 2.8 2.7

Yorkshire and the Humber

0–49 288,650 267,275 256,590 ¹— -7.4 -4.0

50–249 2,410 2,120 2,075 ¹— -12.0 -2.1

250–499 290 280 265 ¹— -3.4 -5.4

500 plus 315 285 300 ¹— -9.5 5.3

East Midlands

0–49 237,795 226,685 232,540 ¹— -4.7 2.6

50–249 2,080 2,010 1,895 ¹— -3.4 -5.7

250–499 240 235 240 ¹— -2.1 2.1

500 plus 245 265 250 ¹— 8.2 -5.7

West Midlands

0–49 303,580 283,865 285,775 ¹— -6.5 0.7

50–249 2,515 2,465 2,305 ¹— -2.0 -6.5

250–499 325 330 310 ¹— 1.5 -6.1

500 plus 340 335 330 ¹— -1.5 -1.5

East of England

0–49 376,025 376,250 349,390 ¹— 0.1 -7.1

50–249 2,310 2,300 2,205 ¹— -0.4 -4.1

250–499 310 305 280 ¹— -1.6 -8.2

500 plus 320 310 325 ¹— -3.1 4.8

London

0–49 562,500 563,145 660,990 ¹— 0.1 17.4

50–249 3,800 3,705 3,465 ¹— -2.5 -6.5

250–499 605 590 565 ¹— -2.5 -4.2

500 plus 730 720 710 ¹— -1.4 -1.4

1124W

§ Nigel Griffiths
We are currently working to give businesses two significant new entitlements; the right to claim reasonable debt-recovery costs without having to go to court; and the ability for grossly unfair terms and conditions that work against the intent of the late payment legislation to be challenged and their continued use prevented.
The changes will come into effect from 8 August 2002, and from that date the late payment legislation will be available to all businesses and organisations irrespective of their size. Currently only small businesses can use the legislation, although previously this right was to have been extended to all business and organisations from 1 November 2002.

	Businesses (number)	Annual change (percentage)
Size (number of employees)	1997	1998	1999	1997	1998	1999
North East
0–49	95,990	98,005	90,160	¹—	2.1	-8.0
50–249	925	905	885	¹—	-2.2	-2.2
250–499	130	120	110	¹—	-7.7	-8.3
500 plus	105	110	100	¹—	4.8	-9.1
North West
0–49	380,325	352,620	352,740	¹—	-7.3	0.0
50–249	2,935	2,845	2,730	¹—	-3.1	-4.0
250–499	380	360	330	¹—	-5.3	-8.3
500 plus	355	365	375	¹—	2.8	2.7
Yorkshire and the Humber
0–49	288,650	267,275	256,590	¹—	-7.4	-4.0
50–249	2,410	2,120	2,075	¹—	-12.0	-2.1
250–499	290	280	265	¹—	-3.4	-5.4
500 plus	315	285	300	¹—	-9.5	5.3
East Midlands
0–49	237,795	226,685	232,540	¹—	-4.7	2.6
50–249	2,080	2,010	1,895	¹—	-3.4	-5.7
250–499	240	235	240	¹—	-2.1	2.1
500 plus	245	265	250	¹—	8.2	-5.7
West Midlands
0–49	303,580	283,865	285,775	¹—	-6.5	0.7
50–249	2,515	2,465	2,305	¹—	-2.0	-6.5
250–499	325	330	310	¹—	1.5	-6.1
500 plus	340	335	330	¹—	-1.5	-1.5
East of England
0–49	376,025	376,250	349,390	¹—	0.1	-7.1
50–249	2,310	2,300	2,205	¹—	-0.4	-4.1
250–499	310	305	280	¹—	-1.6	-8.2
500 plus	320	310	325	¹—	-3.1	4.8
London
0–49	562,500	563,145	660,990	¹—	0.1	17.4
50–249	3,800	3,705	3,465	¹—	-2.5	-6.5
250–499	605	590	565	¹—	-2.5	-4.2
500 plus	730	720	710	¹—	-1.4	-1.4