Small businesses are at risk of going bust because of late paying councils, a new study has found. Although the best authorities are settling more than 90% of their bills in 10 days or less and have made concerted efforts to speed up payments to aid local companies, a Freedom of Information investigation by the Forum of Private Business (FPB) revealed vast inconsistencies in the time councils take to pay their suppliers. FPB chairman, Noel Guilford, said cash from local authorities was a lifeline for small businesses and they couldn't afford to be part of a ‘postcode lottery' when waiting for cash. The research comes a year after the Government urged town halls to settle invoices within 10 days to help smaller businesses maintain cash flows during the recession. Mr Guildford said: ‘It's important to emphasise that, while we're disappointed with the inconsistency of payment practices among local authorities, this isn't about ‘council-bashing'. ‘The vast majority of small firms doing business with local authorities can expect to be paid in a fraction of the time that they would when dealing with a typical big company.'