Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Government targets large firms in crackdown on late payments to small businesses

by September 19, 2024
September 19, 2024
Government targets large firms in crackdown on late payments to small businesses

The UK government is set to introduce new measures aimed at tackling late payments by large firms to small businesses, an issue that contributes to the collapse of 50,000 SMEs every year.

On average, delayed payments cost small businesses £22,000 annually, according to research from the Department for Business & Trade (DBT) and the Federation of Small Businesses.

A consultation has been launched to explore “tough” new laws designed to hold larger companies accountable for late payments, while requiring greater transparency in their payment practices. Under the proposed rules, large firms will be obligated to include payment data in their annual reports, enabling closer scrutiny of their dealings with smaller suppliers.

Previous attempts to address the issue, including the introduction of the “duty to report” legislation in 2017, have seen limited success. Research by the Chartered Institute of Procurement & Supply found only a slight improvement in the payment behaviour of large companies over the past five years, highlighting widespread non-compliance.

Prime Minister Sir Keir Starmer emphasised that eliminating late payments is central to the government’s strategy to support small business growth. “Late payments cost businesses tens of thousands of pounds and are one of the biggest reasons for business failure. We are finally bringing forward the measures that small businesses have been calling for,” he said.

Business Secretary Jonathan Reynolds echoed this sentiment, describing late payments as “simply unacceptable” and stressing the importance of holding larger firms accountable for their payment practices.

In addition to the proposed legal reforms, the government will also enhance enforcement efforts against large firms that fail to report their payment performance as required. Company directors could face criminal prosecution and unlimited fines if they breach the reporting rules. A new fair payment code will be introduced, awarding businesses gold, silver, or bronze status based on their payment standards.

Read more:
Government targets large firms in crackdown on late payments to small businesses

0
FacebookTwitterGoogle +Pinterest
previous post
‘I’ve never seen this’: Top Republican details level of Secret Service ‘lack of cooperation’
next post
Morning Glory: Why I Am Voting For Trump 

You may also like

Socially conscious insurer Lemonade makes entry into UK...

October 3, 2022

How to Protect Marketing Spend with Ad Verification

November 26, 2024

Sainsbury’s launches EV charging business to give ‘smart...

January 12, 2024

Worst factory output fall in 15 years

October 3, 2023

From Front Desk to Founder: How Nupen Patel...

April 3, 2025

Former Barclays boss Jes Staley fined £1.8m over...

October 12, 2023

5 Steps to Booking a Sprinter Van Service

October 25, 2022

15 ideas for your corporate event

February 14, 2025

Converge shatters ‘entrepreneur’ myth as it launches 2023...

January 23, 2023

Rachel Reeves unveils new economic advisory council to...

July 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved