Tag: Bill Esterson

The below Parliamentary question was asked by Bill Esterson on 2016-01-13.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of late payment of claims by insurance companies on SMEs.

Harriett Baldwin

In the Enterprise Bill, Government has proposed to introduce a new requirement for insurers to pay claims within a reasonable time, which will also entitle policyholders to claim damages where a claims is paid late. An assessment of the impact of late payment of insurance claims, including on small and medium sized enterprises, has been published by the government:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/461200/BIS-15-517-IA-late-payment-of-insurance-claims.pdf

The below Parliamentary question was asked by Bill Esterson on 2016-04-19.

To ask the Secretary of State for Business, Innovation and Skills, what support his Department plans to provide to the Pubs Code Adjudicator; and which directorate of his Department will oversee that support.

Anna Soubry

The Department is providing support to Mr. Newby to set up the Pubs Code Adjudicator office and prepare for the service it will deliver. The support includes finalising the office location and helping with logistical matters such as staff recruitment, IT provision, communication and stakeholder planning, financial modelling and service design. As the Pubs Code Adjudicator office becomes staffed, the Department will reduce its support.

Following commencement of the Pubs Code, the Department will perform a sponsorship role to ensure that the Pubs Code Adjudicator is accountable and delivering value for money services whilst maintaining its independence.

The Consumer and Competition Directorate in Economics and Markets Group will provide the ongoing support and the sponsorship function.

The below Parliamentary question was asked by Bill Esterson on 2015-10-29.

To ask the Secretary of State for Justice, if he will make representations to the Criminal Cases Review Commission on reviewing the case of James Thompson.

Mike Penning

The Criminal Cases Review Commission is independent, and it would not be appropriate for Ministers or officials to intervene in individual cases.

The below Parliamentary question was asked by Bill Esterson on 2016-01-13.

To ask the Minister for the Cabinet Office, what information his Department holds on the number of Government departments which failed to pay outstanding debts to SMEs within the 60 day maximum period set out in the Prompt Payment Code.

Matthew Hancock

Government does not hold this information centrally. When undisputed public sector invoices are not paid within 30 days, interest becomes liable under the Late Payment of Commercial Debts (Interest) Act 1998.

In March 2015 central government restated its longstanding commitment to pay 80% of undisputed and valid invoices in 5 days with the remainder paid in 30 days. To increase transparency through publication, departments are required to publish performance against these targets on a quarterly basis on GOV.UK.

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The below Parliamentary question was asked by Bill Esterson on 2016-04-19.

To ask the Secretary of State for Business, Innovation and Skills, which directorate of his Department oversaw the appointment of the Pubs Code Adjudicator.

Anna Soubry

The development of the Pubs Code and the appointment of the Pubs Code Adjudicator were overseen by the Pubs Code and Adjudicator Team.

Due to departmental restructuring this team has sat within two different directorates in BIS: the Consumer and Competition Directorate (prior to July 2015 and currently) and Enterprise Directorate (from July 2015 to March 2016).

The below Parliamentary question was asked by Bill Esterson on 2015-11-02.

To ask the Secretary of State for Business, Innovation and Skills, what recent assessment he has made of the effect on (a) businesses affected by pre-pack insolvencies and (b) employees of such businesses of such insolvencies.

Anna Soubry

The University of Wolverhampton undertook research as part of Teresa Graham’s June 2014 review into pre-pack administrations. This found that returns to creditors from a pre-pack were slightly lower than from non pre-packed administrations.

The report also found that in about 60% of pre-pack deals all jobs were saved, and in a further 10% some jobs were saved. No data is available on the impact of the insolvency on employment at creditors of the company.

A voluntary package of reforms to pre-packs, as recommended by the Graham review, was launched on 2 November with support from the insolvency industry and creditor groups. The reforms are intended to bring greater transparency and improved creditor confidence in pre-packs, and especially those in which sales are to connected parties.

The below Parliamentary question was asked by Bill Esterson on 2016-01-12.

To ask the Secretary of State for Business, Innovation and Skills, which 10 companies owed the greatest amount of late payment debt to SMEs in each six-month period of the last 10 years.

Anna Soubry

The Department does not hold the information required. However, BACS data shows that small and medium businesses are owed a total of £26.8 billion, and the average small business is waiting for £31,900 in overdue payments.[1]

The Government recognises that late payment remains an important issue for small businesses in the UK and is taking significant steps to assist small businesses to recover late payment debts. This is part of a package of measures to tackle late payment. We have also legislated for new transparency measures in the public and private sectors.

The Small Business Enterprise and Employment Act 2015 legislated for new reporting requirement on the UK’s largest companies and Regulations will be introduced this year which will compel larger companies to report on payment practices and performance. This information will be published on a six-monthly basis and will be made publicly available.

The Public Contracts Regulations 2015 introduced a requirement for all public-sector buyers to publish annually, from 2017, their liability to debt interest payments. In central government we have gone further and faster. We will be publishing against these requirements quarterly from April this year. This will allow full public scrutiny of payment performance.

Through the Enterprise Bill, currently before Parliament, we will legislate to establish a Small Business Commissioner to give general advice and to help small businesses resolve disputes relating to payment matters with larger businesses.

Tackling late payment is about creating a responsible payment culture where larger companies recognise the benefit of having a sustainable and robust supply chain, and smaller businesses feel able to challenge poor behaviour. Once implemented, the Government is confident that these measures will lead to significant changes in the UK’s payment culture.

[1] BACS Data June 2015.

The below Parliamentary question was asked by Bill Esterson on 2016-04-19.

To ask the Secretary of State for Business, Innovation and Skills, which directorate of his Department oversaw the development of the Pubs Code.

Anna Soubry

The development of the Pubs Code and the appointment of the Pubs Code Adjudicator were overseen by the Pubs Code and Adjudicator Team.

Due to departmental restructuring this team has sat within two different directorates in BIS: the Consumer and Competition Directorate (prior to July 2015 and currently) and Enterprise Directorate (from July 2015 to March 2016).

The below Parliamentary question was asked by Bill Esterson on 2015-11-02.

To ask the Secretary of State for Business, Innovation and Skills, what recent estimate he has made of the predicted default rate of university maintenance loans.

Joseph Johnson

Student loans are not like a bank loan or credit card. Repayments do not have to made if the borrower’s income is below £21k. There is, therefore, no default rate as such, but a borrower who moves overseas and fails to repay even though they are earning over the threshold would be in default.

Maintenance loans are either repaid during the loan term, or written off after 30 years, or if the borrower dies or becomes permanently unable to work as a result of disability. Provision for the cost of future write offs is made in BIS accounts each year. This is known as the RAB charge.

The below Parliamentary question was asked by Bill Esterson on 2016-01-12.

To ask the Secretary of State for Business, Innovation and Skills, how many SMEs have been declared bankrupt as a result of late payments in each of the last 10 years.

Anna Soubry

The Department does not hold the information required. However, BACS data shows that small and medium businesses are owed a total of £26.8 billion, and the average small business is waiting for £31,900 in overdue payments.[1]

The Government recognises that late payment remains an important issue for small businesses in the UK and is taking significant steps to assist small businesses to recover late payment debts. This is part of a package of measures to tackle late payment. We have also legislated for new transparency measures in the public and private sectors.

The Small Business Enterprise and Employment Act 2015 legislated for new reporting requirement on the UK’s largest companies and Regulations will be introduced this year which will compel larger companies to report on payment practices and performance. This information will be published on a six-monthly basis and will be made publicly available.

The Public Contracts Regulations 2015 introduced a requirement for all public-sector buyers to publish annually, from 2017, their liability to debt interest payments. In central government we have gone further and faster. We will be publishing against these requirements quarterly from April this year. This will allow full public scrutiny of payment performance.

Through the Enterprise Bill, currently before Parliament, we will legislate to establish a Small Business Commissioner to give general advice and to help small businesses resolve disputes relating to payment matters with larger businesses.

Tackling late payment is about creating a responsible payment culture where larger companies recognise the benefit of having a sustainable and robust supply chain, and smaller businesses feel able to challenge poor behaviour. Once implemented, the Government is confident that these measures will lead to significant changes in the UK’s payment culture.

[1] BACS Data June 2015.