The Isle of Wight branch of the Federation of Small Businesses (FSB) has expressed concern at Isle of Wight Council proposals to cut the number of staff responsible for processing invoices.
FSB, representing in excess of 900 businesses on the Island, fears that micro and small businesses would suffer if the staff reduction meant it took the authority longer to process the invoices of local companies.
The proposed staffing reduction, to be considered by the Council at its budget meeting on 24th February would save the authority £40,000 next year.
Norman Arnold, FSB Isle of Wight Vice-Chair, said:
“Everyone knows that the council is facing severe financial challenges but they are not alone. There are businesses on the Island who are also experiencing tough times and it is essential to their survival that they are able to be paid promptly. There will be many businesses across the Island who will be very concerned at this proposal unless it can be clearly shown that the planned cuts will not affect the length of time it will take the council to pay its bills to local companies.
“We would seek this assurance from the IW Council alongside a stated commitment to ensuring that local companies are prioritised when it comes to paying invoices.
“We do not want to criticise the council as we know they are being forced to take some tough decisions. However, this move will be viewed with great trepidation by many local businesses and we must be sure that the authority has fully considered all the implications of this proposed step.”
According to Council budget papers, the proposed reduction in business centre payments team staff would save £40,000 in the coming financial year and cumulatively £73,000 in 2017/18. The papers acknowledge such a move could reduce performance levels and reveal the risk it could leave the authority open for compensation claims for non-payment within 30 days. Currently 98% of invoices are paid within that time frame.
