THE government moved today to help small firms by declaring war on the slow payers - and hinting at moves to expose the companies who delay settling their bills.

This is a sensible, overdue step.

Cash flow and financial confidence are the key to the survival and growth of businesses on the first rungs of the enterprise ladder.

But though the new measures promised by John Major today are welcome, the drive to help small firms beat the bugbear of late payment would be improved if it was given real teeth.

True, making firms publish their payment policy and finding out whether they live up to it will help - so that small businesses may at least be able to avoid dealing with proven late-payers.

But would not legislation with a fixed time-limit by which business bills must be paid, backed up by automatic steep interest charges if the deadline is passed, help far more than the moral persuasion that the government seems to be reaching for instead?

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