Crackdown on late payments to support small business The Small Business Protections Bill (introduced to Parliament on Tuesday) will give the UK the strongest late payments framework in the G7.
The new measures will put a clear duty on large firms to pay smaller suppliers on time, giving small businesses the certainty they need to keep investing, supporting jobs and growing their communities.
Reforms include:
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A 60-day cap on payment terms on all large firms paying smaller suppliers
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Mandatory interest on late payments, set at 8% above the Bank of England base rate -
A ban on the practice of withholding retention payments under construction contracts.
The Prime Minister and Business Secretary welcomed small business owners and Federation of Small Businesses (FSB) representatives to Downing Street to mark what FSB leaders have called an “historic moment for small firms”.
