House of Commons · Written Ministerial Statement
Measures to tackle late payments and long payment terms
07 October 2024 · Department for Business and Trade
Proposed by Jonathan Reynolds Lab Co-op Stalybridge and Hyde
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government will lay secondary legislation to require large companies to report payment performance in Annual Reports.
- A public consultation will be launched to consider further legislative measures to address late payments.
- A new Fair Payment Code will be introduced to be overseen by the Small Business Commissioner.
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.