Statement on new measures to protect small businesses from late payments
19 June 2019 (updated on 19 June 2019)
The Department for Business, Energy and Industrial Strategy (BEIS) announced a new policy to ensure small businesses get paid on time.
BEIS released a press release this morning setting out new measures aimed at protecting smaller businesses from late payments. It proposes three main areas in which changes will occur:
- New powers for Small Business Commissioner to tackle late payments, including fines and binding payment plans
- Company boards will be held accountable for supply chain payment practices for first time
- A new fund to encourage businesses to use technology to simplify invoicing, payment and credit management
The measures will apply largely to larger businesses, and aim to drive transparency and accountability.
Introducing the measures in the House of Commons, Parliamentary Under-Secretary, Kelly Tolhurst said;
"The response to the call for evidence and the package of measures that I'm announcing today will tackle the continued issue of late payments and ensure that this happens."
Responding for the Opposition, Shadow Minister Bill Esterson said;
"In broadly welcoming these measures, I hope that the Government's delivery matches the rhetoric."
- Watch Parliament TV: statement on Government response on call for evidence of late payments
- Read Commons Hansard: statement on Government response on call for evidence of late payments
- See latest Commons Library Briefing on Business Statistics
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