Context
The MP noted that late payments are a significant issue for small businesses in his constituency, impacting their operations and cash flow.
Question
What steps his Department is taking to help tackle late payments for small businesses. Small businesses are at the heart of Altrincham and Sale West, and when I meet them, often alongside the Altrincham district improvement board, they tell me that one of the biggest problems they face is late payments.
Answer from Blair McDougall
This Government are determined to tackle the scourge of late payments, which closes down the equivalent of 38 businesses every day. The Commercial Payments Bill was introduced to Parliament on 19 May and had its Second Reading in the House of Lords on 9 June. This legislation sets out stricter maximum payment terms, mandatory interest on late payments and stronger powers for the Small Business Commissioner to ensure that small businesses are paid on time. That will give the UK the strongest legal framework on late payments in the G7. My hon. Friend always fights hard for small businesses in his patch. This Bill will ensure that purchasers pay suppliers within 60 days and that mandatory interest is paid on late invoices. For too long, large businesses have used small businesses as a source of free credit. That will end under these plans. That will mean better cash flow for businesses in his constituency, more jobs, more economic growth and better high streets.
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