The UK government has unveiled tougher measures in an attempt 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 payment reporting obligations, improving advice available to SMEs on negotiating payment terms, and expanding the powers of the Small Business Commissioner.
Secretary of State for Business and Trade Kemi Badenoch said: “SMEs make up 99 per cent of firms in the UK and are the lifeblood of our economy. I know that late payments are a massive barrier to growth and I am determined to fix that.
“The measures we’re announcing will take a big step towards making sure SMEs get their payments on time, helping firms to grow and prosper.”
