MP Graham Jones has thrown his weight behind a campaign to guarantee businesses are paid by local authorities within 30 days.

The Federation of Small Businesses (FSB) has called for councils to include a 30-day payment period into their contracts in a bid to improve the cash flow for smaller companies.

The Hyndburn MP said that after meeting with the FSB, he wanted to show he is ‘fully supportive’ of the campaign and has contacted Hyndburn Borough Council and asked that they amend their procurement policy to include the 30-day payment rules.

“I am confident that they will be able to include such a term into their procurement policies,” he said. “Local Authorities should show the political leadership to back this campaign and put pressure on the larger private companies that are starving cash flow to small and medium enterprises (SMEs) across my constituency and the wider county.”

Clitheroe company James Alpe Limited said managing cash flow was ‘increasingly difficult.’ A spokesman said: “To mandate 30-day terms would make our lives slightly easier.”

Gary Lovatt, FSB regional chairman for Lancashire and Cumbria, said: “Until we can get the supply of money to small businesses flowing effectively again, it is imperative that we encourage businesses and public sector agencies to pay on time.

“Many SMEs have very little room for manoeuvre.”