Health bodies in the North West lead prompt payment support for small business

LOCAL NHS organisations across the North West are leading the way in prompt payment to ensure vital support for local small business, the Trade, Investment and Small Business Minister Lord Davies said on 3 December 2009. The North West is the first English region to see 100% of its 63 local health bodies committed to paying invoices within ten days.

It follows a call by Minister for Regional Development Rosie Winterton in July for both public sector organisations and businesses to sign up to the Government’s Prompt Payment Code. The Code commits organisations to pay suppliers on time, give clear guidance on payment and invoicing and to encourage good practice.

Government is taking the lead with nineteen out of twenty central government invoices now paid within ten days – an improvement of 24% points since November 2008. £86 billion has been paid to business within ten days by central government since June 2009.

Lord Davies said that:- “Settling bills promptly can make all the difference to the cash flow of a small business. Government is playing its part - but every part of the supply chain must help ensure prompt payment to support our small businesses. I commend the efforts of the North West health bodies and local authorities in supporting their local suppliers through prompt payment, and urge both public and private sector to follow their lead. As well as benefiting suppliers, paying promptly could benefit customers by helping firms to keep prices lower.”

NHS North West Director Finance Mark Ogden said:- “Cashflow is the lifeline of every business; and never has cashflow been as important as it is today in the face of this challenging economic climate. At NHS North West we realise the potentially devastating knock-on effects of late payment. Which not only deprives businesses of cash to buy stocks and pay wages, but can lead to increased levels of stress and stress is a well-known trigger for ill health. So we feel it is very important for NHS organisations to pay their suppliers promptly to ease cashflow and minimise stress.”

Since 1926, S F Taylor Commercial Printers has been part of the fabric of Greater Manchester. Now based in Stockport with a 50-strong workforce, they produce printed literature for the NHS in the North West.

Prompt payment is critical as Gill Tress, Director describes:- “We have a contract covering all Central Manchester hospitals. To meet the contract we invested heavily in the business with the purchase of digital equipment. Prompt payment has proved a lifeline to us. If we can’t pay our suppliers on time, then they can’t pay theirs. It’s a knock-on effect right down to the guy at the bottom. Prompt payment enables us to pay our suppliers on time. It’s good for the overall morale of the company and our suppliers.”

Steven Broomhead, Chief Executive of the Northwest Regional Development Agency (NWDA), said:- “Throughout the economic downturn, the Agency has provided strong leadership to ensure swift support is in place for businesses and that they not only survive, but emerge stronger as a result. The commitment of the region’s local health bodies is an excellent example of how this is working in practice. Put simply, prompt payment can make the difference between whether businesses thrive or falter when cashflow is a paramount business issue. That’s why it’s vital for all organisations and businesses to sign up to the Government’s Prompt Payment Code. Working together on this initiative is a vital step on the road to economic recovery.”

Prompt payment is just one of a number of measures put in place to give real help to businesses to help them come through from the economic downturn. Local firms have benefited from:-

► Time to Pay – £448 million of business tax payments have been deferred through the Time To Pay scheme (assisting local firms with 27,380 cases of tax deferral). The scheme, allowing firms to spread tax payments, was extended in the Pre-Budget Report for as long as it is needed.

► Enterprise Finance Guarantee Scheme - 781 loans have been offered to businesses in the North West bringing £73.99 million to the local economy. In his Pre-Budget Report, the Chancellor announced an extension of the Enterprise Finance Guarantee scheme for loans to small businesses for 12 months.

► Free Business Health Checks - 10,298 businesses have taken the opportunity for a free Business Health Check –a free review of their business with a professional Business Link adviser for hands on advice and help accessing the full range of government help. This is 10% of the number of businesses across the country.

► Better Invoicing - Analysis of supplier invoices held by Experian indicates that suppliers can help improve speed of payment themselves by invoicing correctly and on time. Over 107,000 copies of the Institute of Credit Management’s Managing Cash Flow guides have been downloaded this year. The guides provide a quick reference to the basics of customer, invoicing and cash flow management.

Prompt payment remains a considerable challenge faced by firms and was responsible for some 4,000 UK companies closing last year. This year, businesses in the UK are expected to pay more than £180m in interest charges to banks for overdue payment.

For more information visit:- promptpaymentcode.co.uk.

BBC’s Cash in the Attic star Jonty Hearnden advises the nation on what to look for

THE Energy Saving Trust on Wednesday, 30 December 2009, called on householders across the North West of England to get into their lofts to see what treasures are above their heads.

The organisation – which provides free and impartial energy advice to householders – wants people to start investigating what is sitting among the timbers. New research reveals more than half (51%) of homes within the area don’t have the recommended levels of loft insulation fitted in their homes.

In the North West of England, 1.5 million homes don’t meet the national recommended standard of having at least 150 millimetres of loft insulation in their roof space, which means homeowners are spending more than they need to when heating their home.

So the Energy Saving Trust and BBC antiques expert Jonty Hearnden are challenging householders across the North West to check the depth of their own insulation and see if they can find anything more valuable than the money they would save through having a properly insulated roof space.

Loft insulation is subsidised, costing up to £250. Some eligible householders qualify for free loft insulation and fitting.

Jonty Hearnden’s top tips for searching in attics:-

1. 20th century ceramics – Look out for Beswick animals, early Royal Doulton figurines, Troika pottery and Art Deco designs.

2. 20th century Glass – Look out for Whitefriars, Murano and Scandinavian glass.

3. Gold and Silver – Selling at an all-time high. This includes Victorian and early 20th century jewellery, often sold as scrap and melted down for its cash value.

4. Toys – Doctor Who, Star Wars, Dinky and Corgi, and train sets are always popular.

5. Old Vinyls – Rock and pop memorabilia including Beatles, Rolling Stones and The Who autographs.

6. Books – First Edition books.

7. Clothes –1960's and 70's clothes: think designer labels like Biba and Mary Quant. Costume jewellery.

8. War – War medals and militaria.

9. Sporting memorabilia – 1966 World Cup Final programme now worth £250 to £300.

10. Old telephones – Look out for very early mint and boxed mobile phones from the 1980's.

Energy Saving Trust Chief Executive Philip Sellwood said:- “As soon as the cold weather snaps, everyone is quick to put on a hat or put their hood up, but we are slow to do the same with our home. Much of the heat from a home is lost through the roof, but as this research shows, more than half of homes in the North West of England are under-insulated. Not only is this bad for the environment but it is also bad economically too. We would encourage everyone in the North West to check their loft insulation and if it is less than 150 millimetres, top it up. It could be the most valuable discovery you ever make in your loft – real cash in the attic! When I was renovating my loft – literally inside the loft insulation among the sawdust, I found a large amount of war memorabilia, war medals and letters to home. I did some investigating on those soldiers and found that my home was used to house the army during the war. I was shocked and very pleased to have found objects of value, history and sentiment…it proves you never know what is lurking in your loft.”

According to research from the Energy Saving Trust, homes in the South East of England are more likely to be under-insulated than anywhere else in the UK. The UK average is 49%, with Scotland the second worst region in the UK for achieving minimum loft insulation requirements at 54%.

If every home in the North West of England had the minimum level of loft insulation fitted, the potential CO2 savings could be as much as 360,000 tonnes – the equivalent of taking nearly 120,000 cars off the road. The potential financial saving if every home in the North East upgraded to the minimum loft insulation level would add up to a total saving of around £60 million per year.

BBC Cash in the Attic star Jonty Hearnden said:- “The savings that householders in the North West could make is incredible. That’s why I’d suggest that everyone checks the depth of their insulation as the potential savings are worth it. While you are there, have a search through old boxes and suitcases that have been sitting there for years and see what’s inside. We’ve found lots of valuable knick-knacks on Cash in the Attic – and you might be lucky too! Even if you don’t find anything of value, you might find something that will raise a chuckle; a painting from your school days, an old diary, that outfit that you thought looked great when you were a teenager!”

You might be unlucky though. According to a survey by ICM on behalf of the Energy Saving Trust, more than a third of UK householders (36%) were unlucky enough to find a spider or wasps’ nest.

For more information on loft insulation, log on to:- energysavingtrust.org.uk or call the Energy Saving Trust advice centre on:- 0800 512 012.