A HAMPSHIRE MP has called for the Government to give tougher penalties to companies that do not pay their bills on time.

Caroline Dinenage, Gosport MP, pictured, asked if the authorities would make measures for companies even tougher and broaden the penalty to even more companies.

As the Prime Minister’s Small Business Ambassador for the south, Ms Dinenage said there was a “harmful culture” of larger firms failing to pay smaller companies on time.

She told the chamber how businesses in her constituency welcomed proposals in the Small Business Bill on prompt payment, but said £46m was currently owed to businesses, an increase of £10m on last year.

Secretary of State for Business, Innovation, and Skills Vince Cable, agreed that given the overall problems with access to finance this was a critical issue and said as part of the bill he would look at this issue.