Oral Answers to Questions

Debate between Blair McDougall and Cat Eccles

Thursday 15th October 2026 Commons Chamber

[Cat Eccles (Stourbridge) (Lab)]

7. What steps his Department is taking to help tackle late payments to small businesses.

[The Parliamentary Under-Secretary of State for Business, Innovation, Science and Trade (Blair McDougall)]

The Government are determined to tackle the scourge of late payments, which causes the closure of 14,000 businesses and costs the UK economy almost £11 billion a year. The Commercial Payments Bill currently progressing through Parliament will give the UK the strongest laws in the G7 and represents the most significant reform of payment practices in over 25 years. The Bill will ensure that small businesses spend more time on growing, investing and creating jobs and less time on chasing late payments.

[Cat Eccles]

Late payment destroys thousands of viable small firms each year, and poor practices have seen large firms using small suppliers as a free overdraft. In my constituency, the impact is felt by manufacturers and fabricators, with local metalwork and transport supply sectors facing the longest payment delays in the UK. How is the Minister ensuring that there is a change in payment culture and lifting that burden from small businesses?

[Blair McDougall]

My hon. Friend is absolutely right; I know from personal experience how frustrating it is to have large firms use small firms as a source of free finance. The Commercial Payments Bill will clamp down on late payments by introducing maximum payment terms, providing stronger rights to interest and strengthening the powers of the Small Business Commissioner. She is right about the need for a culture change. The message from Government is that this legislation and this change is coming, and large companies should get their payment practices in order right now.