Search
The Department for Business and Trade (DBT) has published the Government response to the late payments consultation, detailing reforms that aim to crack down on late payments.
Late payments cost the UK economy £11 billion each year and lead to the closure of 38 UK businesses every day.
The Government intends to:
- Give stronger powers to the Small Business Commissioner, including the power to investigate businesses suspected of poor payment practices, adjudicate payment disputes outside of the court process, and levy significant financial penalties on businesses that persistently pay their suppliers late.
- Impose maximum payment terms of 60 days, with strictly limited exemptions.
- Require payment of interest on all late payments at 8% above the Bank of England base rate.
- Introduce time limits for raising disputes on invoices.
- Require the boards or audit committees of any persistently late-paying large company to publish commentary on why payment performance is poor and what actions they are taking to fix this.
Time to Pay Up: Government unveils toughest crackdown on late payments in over 25 years - GOV.UK
Consultation outcome: Late payments: tackling poor payment practices - GOV.UK
The Small Business Minister Blair McDougall has written an open letter to large businesses, highlighting the consultation response and the actions businesses can take now to be ready for these changes.
