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Daily Mail
31-07-2025
- Business
- Daily Mail
UK companies that pay suppliers late will be fined under new law
Companies that continually pay their suppliers late will face fines under new legislation announced today. Sir Keir Starmer said 'it's time to pay up' as the Prime Minister announced plans to impose fines on large companies that persistently pay suppliers late. As many as 38 businesses shut down each day, partly owing to late payments, according to the Government, with tradespeople, shopkeepers and start-up founders particularly vulnerable. It is estimated that late payments cost the economy £11bilion a year. 'Late payments are one of the biggest barriers to small business growth - causing cashflow problems that stop firms from scaling up and investing in their future,' the Government said. 'Every day, hardworking businesses close their doors because they aren't paid on time.' The small business commissioner will be handed new powers, including carrying out spot checks and enforcing a 30-day invoice verification period to speed up resolutions to disputes. The legislation will also introduce maximum payment terms of 60 days, reducing to 45 days, to ensure businesses are paid on time. Small businesses have been quietly battling late payments, with the issue only worsening since the cost of living crisis. Research by the Federation of Small Businesses trade body in 2023 found if late payments had been made on time, 50,000 business closures could be avoided each year. The definition of prompt payment for a small business suppliers, as per the Prompt Payment Code (PPC), is to pay 95 per cent of invoices from small businesses with fewer than 50 employees within 30 days. However, the code is voluntary and plenty of businesses flout the rules. The Prime Minister said: '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. 'It's unfair, it's exhausting, and it's holding Britain back. So, our message is clear: it's time to pay up.' Tina McKenzie, policy chair of the FSB added: 'Today's plan is an encouraging commitment from the Government to take the side of small businesses in the great growth challenge ahead.' The crackdown on late payments is part of a wider package, including plans to pump £4billion of financial support into small businesses. This includes £1billion for new firms, with 69,000 start-up loans and mentoring support.
Daily Mail
31-07-2025
- Business
- Daily Mail
Companies that pay suppliers late will be fined under new government legislation
Companies that continually pay their suppliers late will face fines under new legislation announced today. Sir Keir Starmer said 'it's time to pay up' as the Prime Minister announced plans to impose fines on large companies that persistently pay suppliers late. As many as 38 businesses shut down each day, partly owing to late payments, according to the Government, with tradespeople, shopkeepers and start-up founders particularly vulnerable. It is estimated that late payments cost the economy £11bilion a year. 'Late payments are one of the biggest barriers to small business growth - causing cashflow problems that stop firms from scaling up and investing in their future,' the Government said. 'Every day, hardworking businesses close their doors because they aren't paid on time.' The small business commissioner will be handed new powers, including carrying out spot checks and enforcing a 30-day invoice verification period to speed up resolutions to disputes. The legislation will also introduce maximum payment terms of 60 days, reducing to 45 days, to ensure businesses are paid on time. Small businesses have been quietly battling late payments, with the issue only worsening since the cost of living crisis. Research by the Federation of Small Businesses trade body in 2023 found if late payments had been made on time, 50,000 business closures could be avoided each year. The definition of prompt payment for a small business suppliers, as per the Prompt Payment Code (PPC), is to pay 95 per cent of invoices from small businesses with fewer than 50 employees within 30 days. However, the code is voluntary and plenty of businesses flout the rules. The Prime Minister said: '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. 'It's unfair, it's exhausting, and it's holding Britain back. So, our message is clear: it's time to pay up.' Tina McKenzie, policy chair of the FSB added: 'Today's plan is an encouraging commitment from the Government to take the side of small businesses in the great growth challenge ahead.' The crackdown on late payments is part of a wider package, including plans to pump £4billion of financial support into small businesses. This includes £1billion for new firms, with 69,000 start-up loans and mentoring support. Michelle Ovens CBE, founder of Small Business Britain said: 'These job creators and economy builders will benefit from a huge boost to funding through the British Business Bank, a boost to skills, support for high streets and a long hoped for legislative backing for getting paid on time. 'We will not see economic growth without small business growth, so I am eager to get on and help the Government deliver on this agenda - and help small businesses regardless of their background start, grow and thrive.'
The Independent
17-06-2025
- Business
- The Independent
Now government unit could let you find out how much your colleague is paid
The government is considering new measures to overhaul equality laws and end pay discrimination, potentially requiring businesses to disclose salary bands in job adverts and inform workers of colleagues ' earnings. A new Equal Pay Regulatory Unit may be established with the power to issue fines, change employment contracts, offer advice, and provide mediation to address gender, race, and disability-based pay discrimination. Business groups have expressed concerns that mandatory salary disclosure could hinder their ability to attract and retain staff, while the government has rejected suggestions that such measures would penalise middle-class individuals. Recruitment site Indeed suggests that job seekers would welcome pay transparency, as it helps employees feel valued, identify better opportunities, and promotes a healthier labour market. The Federation of Small Businesses has cautioned that some proposed measures may not be suitable for small businesses, many of which hire through informal networks and lack dedicated HR departments.
