Landmark bill targets late payments as ministers back small firms - London Business News | Londonlovesbusiness.com

"The Small Business Protections Bill, formerly the Commercial Payments Bill, will introduce new rules requiring large companies to pay smaller suppliers within strict time limits, along with tougher penalties for persistent late payers. Ministers say the reforms will end what they describe as the "scourge of late payments", which they argue forces small firms to spend significant time chasing unpaid invoices rather than focusing on growth and jobs."

"The legislation will introduce a statutory 60-day cap on payment terms for large firms dealing with smaller suppliers, alongside mandatory interest on overdue invoices set at 8 per cent above the Bank of England base rate. It will also ban the withholding of retention payments in construction contracts and give the Small Business Commissioner enhanced powers to investigate payment practices, resolve disputes and issue fines running into the tens of millions of pounds for repeat offenders."

""Small businesses are the backbone of our economy - run by people who take risks, create jobs and keep communities going. This government is firmly on their side." "Too many small business owners are spending hours chasing money they are owed and when payments don't come through, the cost is personal. It's about whether you can pay your staff, keep the lights on, or invest in your future.""

""Today we're changing that with the toughest action on late payments in a generation, so small businesses get paid on time and get the backing they need to grow, create jobs and serve their communities." The Government said late payments currently contribute to the closure of 38 small businesses a day, a figure it says highlights the scale of the issue facing sole traders, fre"

The Small Business Protections Bill introduces new requirements for large companies to pay smaller suppliers within strict time limits. A statutory 60-day cap will apply to payment terms for large firms dealing with smaller suppliers. Overdue invoices will attract mandatory interest set at 8% above the Bank of England base rate. The bill will also ban withholding retention payments in construction contracts. The Small Business Commissioner will gain enhanced powers to investigate payment practices, resolve disputes, and issue fines that can reach tens of millions of pounds for repeat late payers. The government links late payments to the closure of many small businesses each day, emphasizing the impact on sole traders and small firms.

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