Proposed New Measures To Ensure Small Business Get Paid On Time
24th June 2019
Small Business Minister Kelly Tolhurst recently unveiled new proposed measures to tackle late payments. Boards of large businesses may be held accountable for payments to small businesses in a drive to increase transparency in the future. This would include disclosure of payment terms and practices, as well as financial penalties and binding payment plans.
The remit of the proposed measures would fall under the Small Business Commissioner, who will be responsible to hold to account the minority of larger businesses who fail to make payments on time.
Kelly Tolhurst said: "The vast majority of businesses pay their bills on time. [...] But as a former small business owner, I know the huge impact a late payment can have on the ability of a small business to plan, invest and grow".
The Small Business Commissioner Paul Uppal said: "The government has a range of measures in place to tackle late payment and this consultation is a further step in the right direction to protect and support small businesses".
The proposal is part of a package that will also include:
- A tough new approach to large companies which do not comply with the Payment Practices Reporting Duty.
- A Business Basic Fund competition of up to £1 million in funding to encourage businesses to use technology to simplify invoicing, payment and credit management.
The Small Business Commissioner’s Office was set up by government in 2017 to tackle the issue of late payments. It has already recovered over £3.8 million and more powers will enable it to tackle this unacceptable culture and do more to champion businesses across the UK.