Last updated: 13 Nov 2023 02:00 Posted in:
The UK government has unveiled tougher measures to address late payment to small businesses ahead of the publication of its Prompt Payment & Cash Flow Review.
In 2022, small and medium-sized enterprises (SMEs) were owed on average an estimated £22,000 in late payments. Improving payment culture in the UK will support smaller businesses and could boost the economy by £2.5 billion annually.
The measures being proposed include:
• Extending the Reporting on Payment Practices and Performance Regulations 2017. Following consultation, the government will take forward legislation to extend payment performance reporting obligations. It will include new metrics for reporting, including a value metric, so businesses and commentators can see the value of invoices, including invoices paid late, and a disputed invoices metric.
• Providing greater advice to small businesses on negotiating payment terms that better suit them, and on how going digital can help them get paid quicker and manage their cash flow.
• Broadening the powers of the Small Business Commissioner, enabling the Commissioner to undertake investigations and publish reports where necessary on the basis of anonymous information and intelligence.
Small Business Minister Kevin Hollinrake said: “Small businesses form a crucial part of large companies’ supply chains. Without them, they couldn’t do business. It’s only right that they should be paid promptly for their services.
“SMEs that are paid on time can do more business, scale up and make more profits, delivering growth for the economy.”
"Small businesses form a crucial part of large companies’ supply chains. Without them, they couldn’t do business. It’s only right that they should be paid promptly for their services."
Kevin Hollinrake, Small Business Minister