‘It's time to pay up', says Starmer in late payments crackdown
The commissioner will also receive new powers to enforce a rule that customers must pay their supplier within 30 days of receiving a valid invoice, unless otherwise agreed, with spot checks to help identify breaches.
Upcoming legislation will also introduce maximum payment terms of 60 days, reducing to 45 days.
'From builders and electricians to freelance designers and manufacturers — too many hardworking people are being forced to spend precious hours chasing payments instead of doing what they do best – growing their businesses,' Sir Keir said.
'It's unfair, it's exhausting and it's holding Britain back.
'So, our message is clear, it's time to pay up.
'Through our small business plan, we're not only tackling the scourge of late payments once and for all, but we're giving small business owners the backing and stability they need for their business to thrive, driving growth across the country through our plan for change.'
The crackdown on late payments is part of a wider Government package and sits alongside a move to pump £4 billion of financial support into small business start-ups and growth.
This is set to include £1 billion for new firms, with 69,000 start-up loans and mentoring support.
'This country is home to some of the brightest entrepreneurs and innovative businesses in the world, and we want to unleash their full potential by giving them back time and money to do what they do best – growing our local economies,' Business Secretary Jonathan Reynolds said.
'Our small business plan – the first in over a decade – is slashing unnecessary admin costs, making it easier for businesses to set up shop and giving SMEs (small and medium-sized enterprises) the financial backing they need.'
Andrew Griffith, the Conservative shadow business secretary, said: 'Cracking down on late payments will be welcome for small business but will mean nothing for the 218,000 businesses that have closed under Labour.
'The reality for businesses under Labour is a doubling of business rates, a £25 billion jobs tax and a full-on strangulation of employment red tape.
'Only the Conservatives are on the side of the makers and will support businesses across Britain to create jobs and wealth.'
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