County Council prompt payment policy to support Somerset business welcomed

Somerset County Council has introduced a policy of a seven-day turnaround for payments to Somerset-based businesses.

Revisions to the council’s payments system now means that all companies with a Somerset postcode will automatically receive payment within seven days of their invoice being received by the council. The more typical payment rate for all business is to pay invoices monthly.

Councillor Liz Leyshon, Deputy Leader of the Council and Lead Executive Member for Finance & HR said: ”The cost of living crisis is also a crisis for businesses in Somerset. The County Council understands the challenges that local businesses face, and we are determined to seek out opportunities to help where we can.

“This change to payment terms will help the cashflow of businesses in Somerset and, as anyone who has run a small business knows, cashflow is critical.”

Ruth Lambert of the Somerset Federation of Small Businesses said: “This is an incredibly challenging time to be running a small business. Many local businesses will just have made it through lockdown and are now being faced by dramatically rising inflation. This step by the County Council is a welcome move to supporting business cashflow. Ideally this will act as an encouragement to other parts of the public sector, and to large companies, to support the eco-system of small businesses that keep the country running.”

Mark Bulman, of Somerset removals and clearance business, said: “This will have a huge impact on small businesses, giving opportunities to those looking to offer their products and services without running into cash flow challenges.  “It’s also a huge opportunity for Somerset County Council to take advantage of the excellent products and services, passion and innovations offered by smaller and more nimble companies, which should lead to a more competitive market and increased value for the public purse.” 


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