Laura Sharman 17 November 2014

Late payment penalties could cost councils millions warns MP

Local authorities have been warned they could face millions of pounds in fines unless they prepare for changes in procurement legislation.

Mary Glindon MP, a senior member of the CLG Select Committee, has written to the chair of the Local Government Association outlining the impact new legislation could have on councils.

Under the proposals, councils will face a fine of up to £100 for each invoice that is paid later than 30 days. Local authorities will also have to publish their payment performance data and calculate and apply penalties for late payment.

Mary Glindon, MP for North Tyneside, said: ‘There is a ticking time bomb facing our councils. The situation is similar to that of ‘equal pay for equal value’ legislation whereby those councils who were not ahead of the game faced serious financial costs.

‘Councils need to prepare now for the forthcoming changes which, in any event, are vital for local businesses in their areas and will help boost economic growth by addressing the cash-flow crisis.’

Oxygen Finance have calculated that a typical upper tier authority could be faced with an annual liability of between £300,000 and £750,000 unless they can comply with the changes.

SIGN UP
For your free daily news bulletin
Highways jobs

PRINCIPAL TRANSPORT PLANNING OFFICER

Hull City Council
£43693 - £46731
We have an exciting opportunity for an experienced professional to join our team in Hull as a Principal Transport Planning Officer. Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council

HIGHWAYS AND TRAFFIC ENGINEER - 4 POSTS

Hull City Council
£43693 - £46731
We have several exciting opportunities for suitably qualified Highways Civil Engineers and Traffic Engineers Wilson Centre, 1st floor, Hull HU1 2AG
Recuriter: Hull City Council

Strategic Director, Finance and Resources (S.151 Officer)

Blackburn with Darwen Borough Council
£110,799 - £120,706
Blackburn with Darwen is a distinctive, welcoming and vibrant borough with a strong identity and a genuine buzz about the place. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Residential Worker, Edge of Care Service

Durham County Council
Grade 7 £29,093 - £32,654 PAY AWARD PENDING
Join a Groundbreaking Team Supporting Families in Seaham Salary
Recuriter: Durham County Council

Bikeability Cycling Instructor

Durham County Council
Grade 4 £24,790 to £25,992 pro rata (Pay Award Pending)
The Road Safety Team are keen to recruit additional Casual Bikability Instructors to join our team of instructors delivering Bikeability cycle trainin Durham
Recuriter: Durham County Council
Linkedin Banner