Philip King outlines his plans for Office of the Small Business Commissioner

Tell us a bit about yourself?

In a career spanning 40 years, I have had senior credit management roles in the high-tech and communication sector and in distribution and retail, which included spells at Olivetti and Vodafone. I was appointed Director General of the Institute of Credit Management (ICM) in 2005, and later Chief Executive and was behind the Institute’s drive to become a Chartered body (which became the Chartered Institute of Credit Management (CICM) in 2015.

The CICM is responsible for administering the voluntary Prompt Payment Code. Signatories to the Code sign up to pay 95% of invoices in 60 days, with an ambition to move toward 30-day payment terms.

What are your plans in this new role?

I don’t see this interim role as that of a caretaker. Rather, I want to work with the team to make a real difference and ensure the permanent appointee in due course has great foundations on which to build.

I will be working tirelessly to increase the effectiveness of the SBC and the team, to raise its organisational profile and awareness of how we can help small business. I aim to be vigorous and rigorous in identifying and exposing endemic poor behaviour.

Tell us a bit about the work of your office?

The Office of the Small Business Commissioner (SBC) has come a long way since it was implemented in December 2017. The team are dedicated to making a difference and have been busy engaging with small businesses at events and various activities around the country. Recent statistics indicate £23.4bn is owed in late payment to small businesses. To date the office has successfully recouped £6.7m in late payments for small businesses but this is just the tip of the iceberg.

What will be your priorities while in office?

There are positive changes on the horizon for the SBC in the coming months. Firstly, the Prompt Payment Code (PPC) will be transferring from the CICM to SBC. This will bring late payment initiatives under one umbrella and simplify the route for small businesses to raise issues. Moreover, it will bring together activities that are complementary in promoting good practice and calling out poor practice.

Do you forsee any changes in the immediate future?

No, the SBC will continue to collaborate with a wide range of business organisations to drive and promote the message that it’s okay for small businesses to seek help, and it’s right to expose bad practice that is damaging to small businesses and the economy. In particular, the Commissioner wants to emphasise the huge emotional impact that late payments can have on small, and especially micro, business owners.  It will continue to make progress and maintain a strong focus on poor payment practices

What next for the SBC?

The government will shortly recruit for a permanent Small Business Commissioner and has committed to strengthening the powers of the Small Business Commissioner to hold to account the minority of larger businesses who fail to make payments on time. New powers could include compelling information and disclosure of payment terms and practices, imposing financial penalties or binding payment plans on large businesses found to have unfair payment practices.

What would you say to CBI’s SME members?

Recognising the needs of businesses both large and small is an essential part of resolving potential conflict. I would encourage small businesses to engage with the commissioner’s office at the earliest opportunity. The SBC is here to support small businesses, so if late payment begins to affect their business, they should contact my team because intervention is key and prevention is better than cure.

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