Small Business Commissioner Explained

The Office of the Small Business Commissioner (OSBC) was established by the UK government in Part 1 of the Enterprise Act, 2016.^[1] Secretary of State for Business Greg Clark announced the appointment of Paul Uppal to the newly established post of Small Business Commissioner on 2 October 2017. On 20 December 2017, working with digital agency "dxw digital", an advice and complaints service^[2] was launched to help small businesses get paid on time and ensure fair payment practices.

The role of the OSBC is to provide general information and advice to small businesses about payment issues with larger businesses, and direct them to services to help them resolve their payment issues. The Commissioner also offers a complaint service. Supporting the Britain's 5.5 million small businesses is a priority outlined in the UK government’s Industrial Strategy.^[3] The Office works across the whole of the UK.

Background

The Small Business Commissioner was established as a non-departmental public body by the Department for Business, Energy and Industrial Strategy.^[4] It was announced in a discussion paper issued in July 2015^[5] and was formally proposed for creation within the Enterprise Bill introduced into the UK Parliament in September 2015.^[6]

Anna Soubry MP, the Minister of State for Small Business, Industry and Enterprise within the Department for Business, Energy and Industrial Strategy, anticipated that the Small Business Commissioner would 'build the confidence and capabilities of small businesses to help them assert themselves in contractual disputes and negotiate more effectively'.^[7]

Under the legislation, the Commissioner:

• enables small businesses to resolve disputes and avoid future issues through general advice and information
• signposts businesses to appropriate services e.g. sector ombudsmen or regulators, existing independent advice services, approved alternative dispute resolution (ADR) providers or the Commissioner's own complaints handling function
• considers complaints by small business suppliers about payment issues with larger businesses that they supply^[8]

A proposal to give the commissioner a role in direct mediation between businesses was not pursued as the government did not believe there was sufficient evidence of market failure in relation to mediation services.

Prior to its launch, the Federation of Small Businesses (FSB) described the proposal as 'a step in the right direction'.^[9] The Office works with the FSB, Confederation of British Industry and British Chambers of Commerce to promote timely payment of commercial debts.^[10]

Commissioner

On 1 Juny 2021 Liz Barclay, a broadcaster and former consumer advisor replaced interim Commissioner Philip King as the Commissioner.^[11]

Notes and References

1. UK Legislation, Enterprise Act, Part 1
2. Web site: Home . smallbusinesscommissioner.gov.uk.
3. Web site: Government appoints Small Business Commissioner to champion voice of small business.
4. https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy Department for Business, Energy, and Industrial Strategy
5. Department for Business, Innovation and Skills, Enterprise Bill, A Small Business Commissioner, published 26 July 2015, accessed 26 September 2015
6. http://services.parliament.uk/bills/2015-16/enterprise.html
7. Department for Business, Innovation and Skills, Government Response, Small Business Commissioner: Government Response, published September 2015, accessed 26 September 2015
8. UK Government, Small Business Commissioner role, accessed 26 September 2015
9. Federation of Small Businesses, 'Enterprise Bill needs to deliver for small businesses, says FSB', 17 September 2015, accessed 26 September 2015
10. Good Business Pays, Wait Off Campaign, accessed 5 February 2023
11. UK Government, Liz Barclay named as Small Business Commissioner to lead crackdown on late payments to small businesses, published 16 March 2021, accessed 5 February 2023