Increasing the scope and powers of the Small Business Commissioner
Executive summary
- AAT agrees that the Small Business Commissioner's complaints handling function should be expanded to include small business to small business disputes. However, it is essential that sufficient additional resourcing is provided to cover the costs of ensuring the Commissioner is able to deal knowledgably, effectively and promptly with these additional complaints.
- AAT is pleased that the government has explicitly acknowledged a desire from many to see the Commissioner cover disputes in the construction sector but is disappointed that government has decided not to do so. This is a missed opportunity to make a very positive difference to payment disputes in the construction industry.
- AAT supports proposals that the Commissioner produce reports into wider SME issues for the Secretary of State to consider. However, given their non-binding nature, AAT is concerned that this may follow other examples where comprehensive reports are produced only to be partly rejected or ignored by government where findings may be politically sensitive.
- AAT has been calling for the Commissioner to have the powers to impose financial penalties since 2016. As a result, AAT supports the proposals contained in this consultation to do so. However, AAT also notes that they only apply in limited circumstances and continues to believe the government should go further and grant the Commissioner the power to penalise any firm that consistently fails to pay 95% of invoices within 30 days.
Related consultation responses
Small to medium-sized enterprises (SMEs) finance
We believe the government should ensure the incentives meet SMEs' needs, and strengthen the Small Business Commissioner's power to tackle late payments.
Statutory review of the Small Business Commissioner
AAT has called for the OSBC to be given the power to impose financial penalties to those who persistently fail to pay 95% of invoices within 30 days.
Review of UK start-ups
Improving the take-up of digital, management and financial skills is essential to UK start-up potential. AAT has made recommendations how to achieve this.
Construction Industry Scheme reform
While there was some support from AAT members for elements of the proposed reform, there was more concern over whether the benefit justified the disruption.
