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Measures to tackle late payments and long payment terms

07 October 2024

Proposing MP
Jonathan Reynolds Lab Co-op
Stalybridge and Hyde
Type
Written Ministerial Statement
Department
Department for Business and Trade
View on Parliament.uk -->
TAGS
Economy Employment

At a Glance

Issue Summary

The statement addresses measures to tackle late payments and long payment terms affecting small businesses and the self-employed in the UK.

Action Requested

The government will lay secondary legislation requiring large companies to include information about their payment performance in Annual Reports, launch a public consultation on additional legislative measures, introduce a new Fair Payment Code overseen by the Small Business Commissioner, and amend existing regulations to require disclosure of retention clauses' practices and policies in construction contracts.

Key Facts

  • In 2022, small businesses were owed an estimated £22,000 on average in late payments.
  • Secondary legislation will be laid to make it a requirement for large companies to include information about their payment performance in Annual Reports.
  • A public consultation on additional legislative measures will launch within months.
  • A new Fair Payment Code will replace the existing Prompt Payment Code and will be overseen by the Small Business Commissioner.
  • Secondary legislation has been laid today to amend regulations regarding retention clauses' practices and policies in construction contracts.
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