An estimated 4793 businesses in Ealing, Southall could be owed as much as £44,047,600 in late payments from bigger clients.
Figures released by BACS Payment Schemes Ltd have laid bare the extent of late payments to small and medium-sized businesses, which now stands at £26.3 billion.
Virendra Sharma MP has now revealed what this could mean for Ealing, Southall’s local economy.
Local Labour MP Virendra Sharma said: “This shocking figure of £26.3 billion is a result of big clients not paying our small businesses for months on end – and sometimes, just not paying them at all.
“Based on the number of businesses in Ealing, Southall this means our local economy could be owed up to £44,047,600 in late payments. What’s truly shocking is that an estimated 50,000 businesses fail each year because of these late payments. Averaged across the country, that could mean an estimated 93 businesses right here in Ealing, Southall are failing each year because larger clients just don’t pay them what they owe.
“It’s important that everyone understands what these national figures mean for local economies. Late payments hurt every local economy across the country.
“Those appalling national figures mean that our small businesses, our local entrepreneurs; the lifeblood of Ealing, Southall are struggling. It’s time for government to step in and make these big clients pay our local business men and women”.
