SMALL businesses in East Lancashire are being strangled by late-payers, figures out today reveal.

Statistics compiled by the Forum of Private Business pressure group estimates that £349 million is owed to privately owned firms in Blackburn alone.

Although the FPB believes around £179 million is owed by small business it still leaves a shortfall of £169 million.

The FSB is calling for legislation to be introduced to force late payers to incur interest on their bills.

A bill is currently before parliament to introduce a system to give firms a statutory right to interest.

"At least we have a real chance of eroding the UK's huge late payment problem," said Nick Goulding of the FPB.

"This is the start of a process which we believe will boost regional economies and hence the national economy."

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