Laura Sharman 07 December 2017

Councils could face up to £1bn in late payment penalties, report warns

Councils could face up to £1bn in late payment penalties, report warns

Councils could face up to £1bn in late payment penalties, according to new report into local government payment practices.

The research, conducted by Oxygen Finance, found the current late payment liability for councils stands at £160m for 2015/16. However, it warned this figure was based on the minimum penalty so could be as much as £1bn.

The Time for Change report found that 87% of councils do not record their late payment liability, and nearly half do not have an e-invoicing system in place.

Ben Jackson, CEO at Oxygen Finance, said: 'There is a perceived wisdom that late payment legislation has no real teeth - since who will bite the hand that feed them, but it could really bite hard if suppliers start to systematically exercise their right for six years’ worth of late payments.'

 
comments powered by Disqus
Sign Up