ICSM’s Business Manifesto for the General Election 2024: includes action on late payment legislation, reforms to pre-packs, and overhaul of business rates
By Harry Mottram: The ICSM Business membership group that campaigns against bad debts and late payment has issued its wish list or manifesto for the main political parties ahead of the General Election on Thursday, July 4th, 2024.
Ian Carrotte CEO of ICSM said the election presented the business community and ICSM members in particular with a chance to make the main political parties aware of their policy requests. He said he was aware that reforms to insolvency legislation and business credit terms ‘don’t cut through with the electorate’ but without a healthy business sector the country’s economy suffers.
He reiterated the views of the Federation of Small Businesses saying that the Government needed to give a higher priority to small businesses and the self-employed who ‘are at the heart of both our economy and our communities in every part of the UK.’
Late payment: Currently firms can claim interest on late payments set at 8% plus the Bank of England base rate as well as debt recovery costs. ICSM Business members would like to see a further tightening up of the Late Payment of Commercial Debts (Amendment) Regulations 2018.
Large companies must publish their payment practices in their annual report with a statement committing themselves to pay on time. The updated legislation should put in law that all small companies must be paid no later than 30 days while all publicly owned bodies and those commissioned by Government agencies to abide by the 30 day rule.
The Small Business Commission to have enhanced powers to bring to book firms who continually pay late and if required bring to a public scrutiny panel to be grilled on their late payment practices – and to face fines and other penalties if they fail to change.
Increase the small claims limit for overdue payments to £30,000 so as to make it easier for small firms to take their debtors to court. And to create through The Small Business Commission an umpire who can officiate between two parties who are disputing an invoice or invoices so as to prevent expensive litigation in many cases.
High Street Help: In recent years footfall has dropped in traditional high streets as consumers shop online and go to out of town shopping parks. The environment must change with a special fund set up along with powers for a high street minister for business to channel investment into all town centres.
Funds for public toilets with clean changing facilities for families with small children, free safe parking for more than two hours, and support for all shops, retailers and service providers in high streets and the surrounding roads with help in enhancing their websites, forcing landlords to cut rents to realistic levels and improve maintenance of rented properties.
Lower or abolish business rates for vital stores in high streets such as start-ups, chemists, Post Offices, department stores, instant print shops, toys shops and grocery stores.
Childcare: Scrap business rates for all child care providers and to offer tax free childcare up to £5,000 but to make it standard that childcare hours rise to 48 weeks and 12 hours a day. All childcare providers to receive a 25% grant towards overheads to increase the numbers of parents returning to work.
Manufacturers: factories have seen their overheads rise to levels that have forced many to go out of business. This must be urgently addressed.
Lower energy bills for factories and workshops through a business subsidy scheme.
A cut in fuel duty for all couriers and hauliers through a reclaim system set up through the department of transport.
Export/imports: a new business deal which will see the UK join the European single market and to wipe away travel restrictions for hauliers who currently are tied up in red tape. An independent Board of Trade to negotiate realistic deals with European neighbours with an aim to join the Schengen zone making trade and employment much easier.
Pre-packs: there has been criticism of pre-packs during an administration, and the regulations of 2021 due to regular cases where unsecured creditors are left high and dry, the firm sold to someone connected to the insolvent firm and a lack of transparency to the deal. ICSM believes the regulations need to be tightened up to address these abuses with the full details of the pre-pack deal published with more powers given the pre-pack pool who can intervene where there are concerns.
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com
