Figures released by BACS Payment Schemes Ltd have laid bare the extent of late payments to small and medium-sized businesses across the country, which now stands at £26.3 billion.
In total, an estimated 47% of all small and medium-sized businesses experience late payments by larger clients, with large private firms singled out as the worst culprits.
Gwynne has now revealed what this could mean for the constituencies local economy.
Andrew Gwynne said:
“This shocking figure of £26.3 billion nationally is a result of big clients not paying our small businesses for months on end – and sometimes, just not paying them at all.
“Based on the number of businesses in Denton and Reddish this means our local economy could be owed up to £23 million in late payments.
“What’s truly shocking is that an estimated 50,000 businesses fail each year because of these late payments. Averaged across the country, that means an estimated 49 businesses across Audenshaw, Denton, Dukinfield, Haughton Green, the Heatons and Reddish, are failing each year because larger clients just don’t pay them what they owe.”
“We’ve got to do more to make sure these businesses, which are often times the lifeblood of the local economy, get fair pay for honest work, that’s why I support Labour’s promise to bring the public sector into the scope of the Small Business Commissioner to ensure all SMEs received prompt payments from public contracts.”