Manufacturing & Supply Chain

The UK Government has announced plans for significant reforms aimed at tackling late payments to small businesses – an issue estimated to cost the economy £11 billion annually and contribute to the closure of 38 businesses each day. The proposed measures include giving the Small Business Commissioner stronger enforcement powers, introducing tighter payment deadlines, and requiring large companies to report more transparently on their payment practices. These changes are intended to improve cash flow for small firms and reduce the time spent chasing invoices.

Alongside the reforms, the Government has also outlined a £4 billion finance package, including 69,000 Start-Up Loans, aimed at supporting new and growing businesses as part of its broader economic strategy.

Stephen Phipson CBE (pictured above), CEO of Make UK, commented: “Manufacturers across the country will welcome the Government’s decisive action to tackle late payments. For too long, delayed invoices have drained cash flow, delayed innovation, and damaged businesses, particularly the thousands of small and medium-sized firms for whom late payments are one of the most consistent challenges to their survival and success.

“These reforms, combined with new powers for the Small Business Commissioner, will help create a culture of fairness and accountability across supply chains. Coupled with real enforcement, this Small Business Plan will give manufacturers the confidence and certainty they need to innovate, grow, and create even more high-skill, high-paying jobs in the UK.”