Now then, now then: Police forces encouraged to pay their bills faster

A survey suggests the nation's rozzers are copping out of paying their suppliers on time.

by Emma Haslett
Last Updated: 31 Aug 2010
Looks like the Old Bill are taking their nickname rather too literally: a new survey has shown that when it comes to paying their suppliers on time, the nation’s police forces are downright unreliable. Apparently, more than three-quarters of them aren’t managing to hit the Government’s 10-day payment target, while another quarter of invoices aren’t even paid within 30 days. With Government spending cuts likely to affect the entire public sector in the coming months, is this just the tip of the iceberg?
The Forum of Private Business asked all the UK’s police forces about their payment records, and it’s a bit of a good cop/bad cop story: the Police Service of Northern Ireland came out on top, with 82% of invoices processed within 10 days, and 98% within 30. By contrast, at the bottom end of the scale was Merseyside Police, which admitted it hadn’t managed to pay any bills at all within 10 days. The Avon & Somerset Constabulary is another force finding that the long arm of the law doesn’t appear to stretch quite as far as its pocket: it only managed to pay just over a third of its bills within a month. Watch the coppers, and the pounds will look after themselves.
Government agencies are supposed to pay invoices within 10 days, after Gordon Brown’s ‘payment pledge’ back in 2008 - which was specifically designed to show support to small businesses. The idea was for the Government to set an example to other business by helping small firms out with their cash flow. Quite rightly, it’s one of the few policies the Coalition hasn’t axed – but it seems that while the good intentions are still there, the reality is sometimes rather different. And with police forces now outsourcing everything from IT and communications to dog food and psychiatric treatment, that’s a lot of businesses potentially left with a significant hole in their cashflow.
The bad news is, it's a bit hard to see things improving any time soon. October’s spending review is set to have a pretty devastating impact on the public sector budgets - and if Government bodies are being encouraged to penny-pinch, they might be more likely to hang onto their cash for a bit longer (they won't have the same pressure on the cashflow as small firms, but still). And perhaps the more significant point, as far as these small firms are concerned, is that some of these contracts will disappear altogether. Some would argue that it's better to have a late payment than no payment at all.

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Leadership lessons from Jürgen Klopp

The Liverpool manager exemplifies ‘the long win’, based not on results but on clarity of...

How to get a grip on stress

Once a zebra escapes the lion's jaws, it goes back to grazing peacefully. There's a...

A leadership thought: Treat your colleagues like customers

One minute briefing: Create a platform where others can see their success, says AVEVA CEO...

The ignominious death of Gordon Gekko

Profit at all costs is a defunct philosophy, and purpose a corporate superpower, argues this...

Gender bias is kept alive by those who think it is dead

Research: Greater representation of women does not automatically lead to equal treatment.

What I learned leading a Syrian bank through a civil war

Louai Al Roumani was CFO of Syria's largest private retail bank when the conflict broke...