SMALL firms in East Lancashire are in favour of more red tape in a bid to tackle late payment, according to a local bank manager.

A survey carried out by Lloyds Bank, found 75 per cent of small businesses in favour of a statutory right to interest on late payment.

But nearly a third said it wouldn't change the way they pay bills - with almost half admitting they are guilty of late payment themselves.

More than half said money owed to them was a major reason for not paying on time.

"Businesses in Blackburn are clearly in favour of legislation despite their dislike of red tape," said Mike Dearden, business banking manager for Lloyds in Blackburn.

"For them to actually want more bureaucracy must reflect their degree of frustration."

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