The Sunday Times recently carried a number of articles that caught my eye. First among them was a piece by the Economics Editor David Smith, a name familiar to many of us in the world of credit management. In his economic outlook column, David quoted the former economic adviser at the Department for Business, Innovation and Skills (BIS) who had apparently said: "most firms are in denial about the impact the [public sector] cuts will have on their business".
At the time of writing, the spending review is imminent, but if the forecast cut in gross capital spending by government from £69bn last year to £43bn in 2013-14 is accurate, the impact will be significant. And the impact will not simply be on the public sector and public sector jobs. The private sector is going to feel pain from the cuts just as badly, and we must all, therefore, be planning to sustain our businesses through the undoubtedly difficult times ahead.
The second piece that caught my attention - partly because I was expecting it - was an article by the Small Business Editor Rachel Bridge. The angle was one of late payment, and specifically how larger customers are withholding payment to small suppliers.
The piece used as a case study National Property Solutions in Wakefield, a business owned and managed by ICM Fellow Rob McTiffin. Rob told of how too much of his time was spent trying to get his clients to pay sooner, rather than driving his business forward. It is a familiar story. The Institute itself was well represented in the piece, highlighting in particular our involvement with BIS's Prompt Payment Code http://www.promptpaymentcode.org.uk/ and outlining some of the work we have been doing to help small businesses improve their cashflow.
One feels there will be many more such articles in the months ahead as the full impact of the government's spending review becomes apparent.
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