There have been some well publicised examples of Councils paying bills quickly to ease the cashflow on small firms or local firms and thus help them survive the recession. But most Councils are sticking to 30 days according to a survey from the Local Government Chronicle. Despite low interest rates Councils saying paying early would still be expensive.
Worcestershire County Council says it could lose up to £300,000 a year by shortening payments to 10 days. If that simply means higher Council Tax bills is it a benefit? Should Councils instead be offering immediate payment in return for a small discount? When I used to publish a magazine (called The Resident a free magazine that went through peoples letter boxes in Chelsea) the printers offered a 10% discount for payment upfront.