Small Business Conciliation Service to be created
26 May 2015
One of the measures of the new Secretary of State for Business, Innovation and Skills is to support small businesses with a new conciliation service to help settle disputes over payment.
As part of its long-term economic plan, the government will cut red tape for business by at least £10 billion over the next 5 years in a new Enterprise Bill that will back business to create jobs.
In Sajid Javid’s first speech as Business Secretary he said that the Bill will help make Britain the best place in Europe to start and grow a business, and help create 2 million more jobs over the next 5 years, so that more people have the security of a regular paypacket.
Another central measure in the Bill will be the creation of a Small Business Conciliation Service to help settle disputes between small and large businesses, especially over late payment practices. Small firms are owed over £32 billion in late payments, but many of them are not aware of their rights or are reluctant to launch legal challenges. This service will build on the existing suite of measures to tackle poor payment practices.
The bill will also support businesses through the extension and simplification of Primary Authority. This scheme allows a business to get advice on regulation from a single local council and this advice must then be respected by all other councils - reducing the time and cost to businesses of having to obey different rules.