Government payments to firms 'still late'

Payments by the Government and its agencies to small businesses are still late despite a pledge more than a year ago to pay bills promptly, a new report said yesterday.

Research by the Federation of Small Businesses found that a third of payments were late, causing cash flow problems for firms.

The federation said it was "shocking" that so many firms were having to wait for money they were owed, more than a year after the Government promised to pay bills within 10 days.

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One in four local authorities were also late paying bills to smaller firms, as well as 29 per cent of health authorities and 30 per cent of EU institutions, while the problem affected 34 per cent of private firms as well.

John Wright, chairman of the FSB, said: "The public sector needs to take the lead in more than word alone and set an example."

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