Government is calling for evidence regarding current purchase protection legislation affecting small businesses, and APHC is urging installers to get involved.

The recently announced Small Business, Enterprise and Employment Bill includes new requirements obliging all large companies to report on their payment performance. This is designed to support small businesses, but there have now been calls for government to take this one stage further by granting SMEs protections similar to those consumers will have when the Consumer Rights Bill comes into force. These protections would apply when firms purchase goods and services.

In her Ministerial Foreword to 'Call for Evidence: Protection of small businesses when purchasing goods and services', Parliamentary Under-Secretary of State for Employment Relations and Consumer Affairs, Jo Swinson, explained: "The government has heard how such a move may potentially benefit businesses, particularly sole traders and micro businesses, which are often in no better a position than a consumer when making purchases. However, the government is also aware that micro and small businesses are suppliers as well as customers such that transferring consumer rights to such an important, and varied, business sector may have unintended consequences. I believe we need to approach this carefully."

Government is now asking for evidence of whether micro and small businesses are sufficiently protected by the current legislative framework for the sale and supply of goods, or whether a gap in the law exists in this area. Should such a gap be identified, the government would like evidence on the potential impacts on the costs and benefits of applying certain consumer protections to micro and/or small businesses and what other options are available.

John Thompson, chief executive of the Association of Plumbing & Heating Contractors, said: "We are glad that the government finally seems to be taking an interest in the need to increase the purchase protection of small businesses in the UK, which currently encounter far more difficulties in this area than their larger counterparts. As such, we are urging members of the plumbing and heating industry to make their voices heard by participating in this long-awaited investigation. We are hopeful that this call for evidence results in some constructive discussion which paves the way for future proposals in the area."

The government is interested in hearing from individual firms and their representatives, trade bodies, research and academic organisations as well as others with experience of analysis in this area. To gain an insight into concerns about the current framework, as well as those about changing it, the government says it is interested in receiving as wide a set of views as possible. They also request that submissions are backed up with strong and clear evidence to support any views offered.

Response forms can be downloaded at https://www.gov.uk/government/consultations/purchasing-goods-and-services-protection-of-small-businesses. Once completed, they should be emailed to sean.browne@bis.gsi.gov.uk or posted to:

Sean Browne
Competition and Consumer Policy Directorate
Department for Business, Innovation and Skills
3rd Floor
Victoria Street
London
SW1H OET