Loophole in late payment law

Loophole leaves late payment law unfit for purposeMPs and SME representatives are calling for legislation designed to force large companies to reveal how long they take to pay their suppliers to be rewritten over concerns loopholes mean it is easily sidestepped. This comes after it was shown that not all subsidiaries of large firms are required to follow the duty to report rules. Rachel Reeves, chairwoman of the Commons business, energy and industrial strategy committee, said: "If large companies can exploit loopholes to dodge reporting requirements, it undermines efforts to tackle late payments and protect small businesses." Ian Cass, managing director of the Forum of Private Business, said that the loophole "makes a mockery” of the legislation, describing it as “unfit for purpose”. Paul Uppal, the small business commissioner, said: "It is disappointing that the regulations are not proving to be as effective as I anticipated."