UK Government Could Provide £6bn Stimulus by Paying Its Bills on Time
UK public authorities are among the worst in Europe for paying invoices in full and on time, according to research by credit management services company Intrum Justitia. The European Payment Index survey of over 5000 organisations across Europe has shown that UK public authorities owe around £6bn in unpaid invoices, many to small and medium sized organisations (SMEs) who are struggling to survive in the current economic climate.
Across UK public authorities, businesses and consumer groups, 2.4% of all invoices are never paid – an increase of half a percent compared to the same period last year. If all invoices across these groups were paid on time and in full, the money saved would equate to a liquidity injection of £39bn into the UK economy, says Intrum Justitia.
“On the one hand we have governments across Europe pumping huge sums of money into their economies to increase cashflow, yet on the other hand, these same entities are not paying invoices on time,” said Lars Wollung, CEO, Intrum Justitia. “If public authorities would pay on time it would help the cash flow of businesses in Europe, enabling them to invest faster and pay faster themselves.”
Key UK statistics:
Key European statistics: