The government must lead the way on paying small firms on time, it has been claimed.
According to Matt Goodman, policy representative for the Forum of Private Business (FPB), more legislation is not the way to deal with the issue of larger firms not paying small suppliers on time.
Instead, the government must make sure it sets a good example by doing so itself.
He said: "It was agreed that the way forward must not lead to more regulation, which would simply add to another major problem for small firms.
"What is needed is a change in the culture of payment."
Local government also needs to take action on the issue and ensure bills are paid on time, he added.
Recently, the Federation of Small Businesses urged the government to apply rate relief to small firms directly.
According to the body, many are missing out on the incentive as they do not realise they have to apply for it.
