FMB calls for reform following Carillion crisis

The group is asking for a more rigorous payment code so that larger companies hold reasonable and sustainable financial terms with smaller firms.

Phil Hodge, regional director for FMB’s southern region said: ‘Small businesses have historically been under huge pressure from larger clients as large clients assume they can insist on longer payment cycles.

‘This puts smaller firms under a huge amount of pressure financially.

‘When a large player like Carillion goes bust, it has an enormous impact on the SME sector.

We want the government to refocus on putting in a rigorous payment code and this structure needs to be maintained so that smaller firms get a share of the action.

‘The great thing about these smaller firms is that they feed back into the local community and are also a great advocate of apprenticeships.

‘We simply can’t afford to be without their flexibility’