“The new government had to act quickly on late payments given its drag on businesses’ cash flow, investment and innovation just when we need the economy to run smoother to drive growth.
“Recruitment is just one of the dynamic sectors hamstrung by late payments, with payment periods for suppliers of agency workers (who were paid that week by the agency) of up to 120 days demanded.
“We hope the promise of reform and consultation will help give employers the greater confidence in the economy they are seeking to move on their hiring and investing intentions.”