UK Government Strengthens Late Payment Regulations

New Protections for Small Business Suppliers

The UK Government has announced strengthened regulations targeting late payment practices, with particular focus on large corporations that delay payments to smaller suppliers.

Key Changes

The new regulations include:

• Mandatory reporting - Large companies must publicly report their payment practices
• Supply chain audits - Regular audits of payment performance
• Penalty framework - Fines for persistent late payers

Industry Response

Business groups have largely welcomed the changes, though some have called for even stricter enforcement mechanisms.

The Federation of Small Businesses commented: "These measures are a step in the right direction, but we need to see robust enforcement to change the culture of late payment that has become endemic in some sectors."

Implementation Timeline

The new rules will be phased in over the next 18 months, with the largest companies required to comply first.

Small business owners are encouraged to familiarize themselves with the new reporting requirements and how they can use published data to assess potential customers and clients.