Asked by: Michael Wheeler (Labour - Worsley and Eccles)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether his Department is taking steps to help small businesses respond to the payment of delayed invoices by larger businesses.
Answered by Gareth Thomas - Parliamentary Under Secretary of State (Department for Business and Trade)
In September 2024 we announced a package of measures to help ensure small businesses are paid promptly by the large businesses they supply.
This included the newly launched Fair Payment Code by the Small Business Commissioner, and upcoming legislation to require that large companies include payment performance reporting headlines within their annual reports.
We will soon launch a public consultation on further measures to address late payments and long payment terms, including strengthened powers for the Small Business Commissioner.
Asked by: Michael Wheeler (Labour - Worsley and Eccles)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether his Department has made an assessment of the potential impact of delayed invoice payments on (a) self-employed individuals, (b) sole traders and (c) small businesses in the construction industry.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
Smart Data Foundry research shows that small businesses, including those in the construction industry were owed on average an estimated £22,000 in late payments in 2022. This represents a significant cash flow challenge for small businesses, undermining opportunities to invest and innovate.
In September 2024 we announced a package of measures to help ensure small businesses and the self-employed are paid promptly to improve the resilience of supply chains and boost economic growth across the UK.
We will soon launch a public consultation on further measures to address late payments and long payment terms, including specific measures to address the construction contractual practice of retention payments.
Source: Smart Data Foundry (2022) – Payment Speed and Timeliness for UK Small & Micro Businesses – https://smartdatafoundry.com/resources/news/payment-speed-and-timeliness-for-uk-small-and-micro-businesses