Liz Smith MSP, Scottish Conservative MSP for Mid Scotland & Fife has called on the SNP Scottish Government to back the development of the Small Business Conciliation Service to help resolve disputes for small businesses, and crack down on late payments. It has been estimated that payment disputes for small businesses cost British business £40billion in 2015.
The current legislation on late payments is the Late Payment of Commercial Debts Act of 1998, which does extend to Scotland and Northern Ireland. In Scotland, no service such as that which was proposed as part of the Enterprise Bill currently exists, with business.scotland.gov.uk recommending that the debt claim be taken to the Sherriff Court if the debtor refuses to pay even after a final warning letter has been issued.
Liz Smith MSP, Scottish Conservative MSP for Mid Scotland & Fife said:
“I welcome the steps being proposed by the UK Government to establish a Small Business Conciliation Service. This service has the potential to provide small businesses across the UK with a services to help resolve small disputes.
“In my time as an MSP a number of businesses have highlighted their concern at the lack of a Small Business Conciliation Service with many businesses not being able to afford the legal costs of pursuing claims.
“The Small Business Conciliation Service seeks to address the problem of late payments to small businesses by establishing a Small Business Conciliation Service to resolve disputes surrounding late payments without resorting to court action which can be a lengthy, expensive and complicated process for small businesses.
“I have written to the First Minister to ask if she will look to make sure that Scottish Businesses are included under the UK Government proposals or to make sure that a similar Scottish Small Business Conciliation Service is developed.