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Labour has called for Conservative-run Westminster City Council to “stop spinning and start paying” after new figures revealed the council breaking a promise to pay local small businesses on time.

When council leader Colin Barrow announced policies in October to deal with the economic downturn, he followed Lord Mandelson’s call and said the council would be “paying invoices from smaller businesses within 7 to 10 days”. However, the most recent statistics from the council admit that only 37.5 percent of invoices from small businesses were paid within ten days.

Incredibly, Westminster has also admitted paying small businesses, on average, later than large businesses. Overall, 91.05 percent of invoices were paid before the national 30-day deadline, but for small businesses the figure falls to 87.5 percent. Council officers have said the main reason for delays is that invoices have to be sent between different council office, so the approval gets delayed in transit.

Labour councillor David Boothroyd said:

“I knew something was up when the council didn’t respond to a survey by the Local Government Chronicle on paying small firm invoices. Small firms in Westminster are the most likely to employ people who live in Westminster so paying them on time really helps local people in the recession. However all the council did was to send a letter to 80 local small businesses as well as some charities. The council simply isn’t helping local businesses supply it.”

He added:

“I’m calling on the council to assist small businesses to sign up for its e-procurement programme, which speeds up payment. Their performance is dismal; no wonder Colin Barrow did not mention this pledge once in his Leader’s Speech. It’s beginning to look like it was just spin in the first place. Colin Barrow needs to stop spinning and start paying.”

Source: LabourMatters