Successful partnership

Councils deliver social value by paying 1,500 small businesses early

Councils in North East England are leading the way in helping small businesses get paid faster, thanks to an initiative supported by the North East Procurement Organisation (NEPO), with 1,500 firms in the region benefitting from the scheme.

Gateshead, Middlesbrough, Newcastle and Northumberland councils, who work in partnership with NEPO, introduced a free early payment programme to pay invoices from small and micro firms, with a focus on helping local suppliers.

Small businesses often struggle to get paid on time, which can put them into financial difficulties.

However, NEPO’s free early payment programme can reduce by two-thirds the number of days suppliers need to wait for the payment of invoices, delivering millions of pounds of vital cashflow.

This, in turn, fuels jobs and encourages further investment throughout the wider supply chain, supporting the local economy.

Commenting, Small Business Commissioner, Liz Barclay said:

“It's great to see positive change in payment practice. Getting money into the hands of smaller businesses earlier reduces uncertainty and increases confidence, which is good for jobs and society. Early payment programmes are leading the way in progressive payment.”

The free, early payment programmes, allow councils to pay businesses with fewer than 50 employees much earlier than usual, at no cost to the firms.

Around 1,500 suppliers to the four councils are already benefiting from the programme, with another 500 due to enrol over the next few months.

NEPO's Procurement and Commercial Director, Steven Sinclair added:

“Small and micro businesses are the lifeblood of the economy in the North East. As significant buyers of goods and services, it's vital that councils lead the way in adopting good financial governance.

“NEPO is delighted that our members have recognised this by implementing progressive early payment practices, helping local enterprise during these uncertain times.”

Established in 1976, NEPO works in partnership with North East local authorities and the wider public sector to ensure public sector spending delivers value and drives positive outcomes.

NEPO procure a wide range of goods and services, meaning its procurement solutions feature suppliers of all shapes and sizes, from SMEs to large multinationals.

PSE365 will be hosting a Public Sector Procurement virtual event on 19 May, sign up here.

Accelerating the use of data

PSE Oct/Nov 22

Accelerating the use of data

Our October/November edition of PSE brings you expert comment and analysis on a range of public sector topics, from levelling up, the cost of living crisis. Learn about EV infrastructure, or how the change of a Prime Minister can affect public sector aims.

Videos...

View all videos
#PSE365: Public Sector Levelling up

Be A Part Of It!

PSE365: Public SectorLevelling up Virtual Event | 17 Nov 2022

PSE has created a full calendar of events to address the most important issues that influence the delivery of public sector services. 

Over 365 days you’ll have the opportunity to hear from a range of highly motivating, informative and inspirational speakers. These speakers will equip you with knowledge and unique insight to enable you to overcome the challenges that you face.

Upcoming Webinar

Webinar: Driving sustainability & value through technology end-of-life

End-of-life is often overlooked yet is equally as important to a digital strategy, but what happens to end-of-life technology? What is the impact on the environment, net zero targets? What is the financial impact, is value for money for the taxpayer simply discarded and destroyed along with the technology?
 

Join us on 13 September between 2:00pm-2:45pm where we look to address the lifecycle of a digital strategy with a focus on end-of-life using examples, achieving efficiency, increased sustainability and delivering cost savings.


Guest Panellists:

Adam Turner, Head of Government and Public Sector Sustainable ICT and Digital, DEFRA
Ben Levin, Senior Manager, Technology Assesment and Criteria Development, Global Electronics Council
Fredrik Forslund, Vice President, Enterprise & Cloud Erasure Solutions, Blancco
Ben Tongue, Digital Net Zero Lead, NHS England

More articles...

View all