The Office of the Small Business Commissioner, launched in December 2017, has reclaimed less than £800,000 for small businesses since June 2021.
At the same time it has been revealed that the British Business Bank (BBB), the Government’s economic development agency, reported a loss of £135m in the year to March.
Neither of these revelations is good news for SMEs, already struggling with rising interest rates and costs.
The British Business Bank was set up by the Government to support investments in SMEs.
The Office of the Business Commissioner was supposed to improve the situation for SMEs waiting on payments from bigger organisations.
It seems neither has been particularly successful in fulfilling its remit.
A Government review of payment rules and the role of the Commissioner was completed this year and is due to report soon.
Craig Beaumont, chief of external affairs at the Federation of Small Businesses, says the decline in recoveries shows it is “crystal clear just how much senior cabinet leadership is needed on this issue to turn it around.”
But how much longer must SMEs wait before there is action to give the commissioner real powers to address the situation?
Meantime, businesses wanting to keep a close eye on their cash flow can download this free tool here.