STORY
The Government has introduced the Small Business Protections Bill as part of a new drive to tackle late payments to smaller firms. Ministers said the legislation would create the toughest late payment regime in the G7 and give small businesses greater certainty over the money they are owed.
The Bill includes a 60-day cap on payment terms for large firms paying smaller suppliers, mandatory interest on late payments and measures to ban retentions in construction contracts. The Small Business Commissioner would also receive stronger powers to investigate poor payment practices, adjudicate disputes and impose fines on persistent late payers.
Prime Minister Keir Starmer said small businesses were the backbone of the economy and should not be forced to spend time chasing unpaid invoices. Business Secretary Peter Kyle said late payments were costing the UK economy £11 billion a year and damaging growth, jobs and business confidence.