Government to name and shame big business late payers

Large companies that fail to pay their small suppliers on time will be named and shamed online, the government has announced. 

Cabinet Office minister Francis Maude said entrepreneurs are being encouraged to whistleblow on late payers in a mystery shopper style initiative with the names of the offenders to be published on the Cabinet Office website. Business owners will be able to complain anonymously if necessary.

The measure was one of several aimed at tackling the problem of late payment which, according to recent research by Bacs, is costing small and medium sized businesses £24bn a year.

Maude also said that the performance of major contractors to Whitehall departments would be monitored more closely and the Crown Representative team, who co-ordinates the government's management of key suppliers, would "strongly encourage" their prime contractors to pay more quickly than 30 days.

"We will be keeping a close eye on how the big suppliers choose to pay their sub-contractors," Maude said. "We won't shy away from naming and shaming those that we find have failed to pay promptly."