Food and environment secretary Hilary Benn  has ordered supermarkets to settle their debts with farmers and food producers struggling with the credit crunch.

Benn  has met retail bosses in a bid to maintain cash-flow in UK plc and ensure suppliers are not forced to the wall by delays in payments from clients. Mr Benn stressed that in the current financial climate, everyone in the food chain should be looking to speed up their payments to the small businesses that supply them with food and other goods.

“Small businesses are far more susceptible to the timing of payments than bigger companies [and] a single late payment can be the difference between survival and collapse,” Benn said. “I asked supermarket leaders to do all they can to process payments as quickly as possible to help the small suppliers that are the lifeblood of their industry through turbulent times.

“I have also spoken to the Food & Drink Federation and I hope all major food suppliers who work with the small businesses and producers which ultimately feed us will take action.”

Last week Whitehall unveiled plans to help all small businesses ride out the current economic downturn, including a pledge to pay all Government invoices within 10 days instead of 30.
More on this story