Following its call for evidence in tackling late payment, the government is to consult on strengthening the powers of the Small Business Commissioner in respect of larger businesses which fail to make payments on time. The new powers could include compelling information and disclosure of payment terms and practices and imposing financial penalties or binding payment plans on large businesses found to have unfair payment practices.

The government is also to take a tough approach to large companies which do not comply with the Payment Practices Reporting Duty, the existing mandatory requirement on large businesses to report payment practice to a national database twice a year. The legislation allows for the prosecution of those which do not comply, and fines may be imposed.

See: broad-new-measures-to-ensure-small-businessesget-paid-on-time