Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what steps they are taking to address concerns about late payments to small to medium sized businesses.

In April 2017, the Government introduced a duty on large businesses to report on their payment practices, policies and performance. This statutory requirement increases transparency, providing suppliers with better information about the payment practices of large businesses they intend to trade with.

In October 2017 BEIS published two consultations on payment practices within the construction sector. The consultations run in parallel, with a response period of just over 12 weeks, closing on the 19 January 2018. Both consultations and supporting documentation will be used to assess the extent of the issues; and what further intervention is needed.

In December 2017 the Government launched the Small Business Commissioner to help small businesses struggling with late payments. Paul Uppal, the Small Business Commissioner, will play an important role in supporting small businesses to resolve their payment disputes with larger businesses, providing advice, and help bring about a culture change in payment practices and how businesses deal with each other.

In the public sector, the Public Contracts Regulations 2015, mandate that public sector buyers must include 30-day payment terms in new public sector contracts, and requires that this payment term be passed down the supply chain. The Mystery Shopper service will investigate reports of poor procurement practice and late payment, including late payment through the supply chain.

The Government also continues to support the voluntary, industry-led Prompt Payment Code, which remains the gold standard of payment practices.