TRAFFORD Council is to examine how it can ensure that prompt payment is made for services rendered to its sub-contractors.

A survey by the Federation of Small Business(FSB) found that just one local authority in Greater Manchester, namely Bolton Council, used contractual agreements, to ensure sub-contractors used by the authority to fulfil a job, were paid within 30 days.

The 30 day rule is how fast all councils are supposed to pay suppliers, but, according to the FSB, many of these then fail to pay their own sub-contractors in such a timely fashion.

FSB’s Manchester & North Cheshire chairman, Richard Gregg, other authorities including Salford had now reviewed its policy, and is now making those demands on its suppliers.

Mr Gregg said: "“Prompt payment is a blessing for small firms, many of who struggle with cash flow, so anything that can help remedy that is very welcome.

"We strongly urge other local councils to follow suit. All public bodies can and should be making this gesture to help small firms.”

Trafford Council, for its part has said it is also looking at changing its policy.

Leader of the Council, Cllr Sean Anstee, told the FSB it was looking to introduce ‘contract clauses’ for its suppliers, but said it would require ‘careful consideration’ before being implemented with regards to how the council monitored performance, and also of the consequences for those suppliers who went on to breach the contract.

Gregg added: “It’s great that Trafford is looking at this. It’s right that any council supplier who is paid in 30 days by the authority should pass on that benefit to their sub-contractors. It’s only fair, and we hope Trafford can make this change ASAP.”

ENDS