The UK Government has opened a public consultation on proposed legislative changes to tackle the persistent problem of late payments, as part of its recently announced Small Business Plan.
The consultation, launched by the Department for Business and Trade, sets out measures to strengthen protections for small firms, including enhanced powers for the Small Business Commissioner to act against poor payment practices.
Late payments remain one of the most significant challenges facing small businesses, with recent figures suggesting they cost the UK economy £11 billion a year and force 38 firms to close every day. By seeking views from those directly affected, ministers hope to shape reforms that will improve cashflow for small companies, helping them to invest and grow.
The Department is inviting responses from across the business community, including small business owners, trade associations, finance providers, and larger companies. Stakeholders are encouraged to share their experiences and recommendations to ensure the new framework addresses the realities of day-to-day trading.
Simon Cox, Director of NNBN, urged firms to get involved: “This consultation is a vital opportunity for businesses to have their voices heard. Late payments stifle growth, damage confidence, and put unnecessary strain on owners who are already juggling many pressures. By contributing to this process, businesses can help shape practical solutions that will make a real difference to the way we all operate.”
The consultation is open until 23rd October, and the Government is encouraging as many businesses as possible to participate. Responses can be submitted online, and stakeholders are asked to share the consultation widely across their networks.
For small firms struggling with late payments, this could be the first step toward securing faster, fairer payment terms across the UK economy.
To engage in the consultation, click here.