Government Action to Tackle Late Payments

Share Article
Government Action to Tackle Late Payments

The government has launched a consultation aiming to give more power to the Small Business Commissioner surrounding late payments.

Cash flow has a huge impact on the survival of small businesses, with around 50,000 companies forced to close each year due to late payments. With the COVID-19 pandemic still having a huge impact on businesses across the country, this issue has never been more urgent than it is right now.

In response, Small Business Minister Paul Scully has just announced new proposals from the government to ensure UK small businesses are paid on time.  

So, what exactly does this mean?

The consultation, opening on 1st October, is set to run until 24th December 2020. During this time, the government will discuss and consider proposals put forward that look to give new powers to the Small Business Commissioner.

These proposed powers could introduce stricter penalties for companies that don’t pay their partners on time, the ability to launch investigations into suspected bad payment practice without first receiving a complaint, and more.

But what could this change for your business?

The aim of this is to create a culture within UK business where invoices are paid promptly. This means, if you have a partner who isn’t paying your invoices, there would be more that could be done to ensure you get the money you’re owed.

There is currently an estimated £23.4 billion worth of late invoices owed to small firms across the UK. The ultimate aim of this consultation is to reduce this number, helping more businesses to succeed and boosting the economy.

Want to have your say?

Business owners can share their views here.

Timed popup