Companies doing business with the police in some parts of the UK can expect their invoices to be paid within days, the Forum of Private Business (FPB) has discovered.
However, firms in other areas can be left waiting over two months for payment from their local force, despite repeated Government directives urging public bodies to implement prompt payment policies.
The Forum used the Freedom of Information Act to ask every civilian police force in the UK how quickly they processed payments to businesses during the 2009/2010 financial year. Some forces managed to pay more than three quarters of invoices within ten days, and almost 100% of their invoices within 30 days.
However, others paid less than 1% of their bills within ten days and took more than 30 days to pay well over half their invoices, creating a huge gulf between the best and worst-performing forces.
Finances under serious pressure
FPB spokesperson Chris Gorman told SMT Online: “We found that some police forces appear to be excellent at paying businesses promptly. This is to be welcomed, and I’m sure their efforts are appreciated by the smaller firms which work for them.”
However, Gorman continued: “Many others appear to be making little or no effort to pay their suppliers and contractors quickly. This means that the companies they deal with may well find their finances under serious pressure while they are waiting to be paid.”
He added: “It also means the poorly-paying forces may be limiting the range of companies willing to work for them to only larger businesses with substantial cash reserves. This is bad both for small businesses and for the public purse, as it means there will be less competition in the tendering process.”
Gorman concluded: “We would urge the police forces which don’t seem to see prompt payment as a priority to follow the example set by their counterparts elsewhere in the UK, both for their own good and to help ensure the survival of small firms in their areas.”
Four salient questions asked of the police
In a request made under the Freedom of Information Act, the Forum asked police forces four questions:
The Police Service of Northern Ireland emerged as the best-performing force, both for ten-day and 30-day payment. It processed 82% of invoices within ten days and 98% of invoices within 30 days.
Strathclyde Police and the City of London Police were also top-performing forces by the two measurements.
On the other hand, Merseyside Police appeared to be the worst force for ten-day payment after it admitted it had failed to pay any bills within this timeframe. Nottinghamshire Police was the second worst by this measurement with a figure of 0.92%.
Avon and Somerset Constabulary emerged as the worst for 30-day payment, paying just 37% of bills within the month, closely followed by Staffordshire Police on 43%.
The poor performances of many forces meant that, on average, UK police forces paid just 24% of invoices within ten days and 77% within 30 days.
One of the main threats to survival
FPB members frequently cite late payment as one of the main threats to the survival of their businesses.
Police forces have procurement budgets running into tens and even hundreds of millions of pounds. They purchase a wide range of goods and services from businesses, many of which are small to medium-sized enterprises.
These goods and services include everything from software, IT and communications equipment to cycles, waste disposal, livery fitment, building maintenance, vehicle recovery and veterinary care.
Many forces also outsource highly specialist services such as drug testing, driver training and psychiatric treatment which may be carried out by smaller businesses.
About the Forum of Private Business
Representing thousands of small businesses across the UK – including retail, service providers and manufacturing companies – the Forum is recognised by the Government as one of the six main business support and lobby groups.
The Forum is a proactive, not-for-profit organisation providing comprehensive support, protection and reassurance to small businesses.
It’s an organisation that aims to deliver an exceptional service to its members, adding value through the provision of practical, tailored solutions that promote business success and by being their voice in Government.
For further information access the website (a dedicated link is provided on the right hand panel of this page)
