The Government has announced new measures to tackle late payment, with the aim of supporting small businesses and “unlocking their barriers to growth”. It plans to ‘step up’ enforcement of the Reporting on Payment Practices and Performance Regulations and introduce new legislation requiring large businesses to include this information in their annual reports. The guidance to the Regulations has also been updated to include the new reporting requirements on value of invoices paid and disputed invoices, which come into force from 1 January 2025. Build UK has identified some potential inconsistencies in the updated guidance and is working with the Department for Business and Trade to ensure that the required information will be reported correctly.
At a meeting with Business Secretary Jonathan Reynolds last week, attended by Build UK Chair Julie White, it was confirmed that a new Fair Payment Code will be introduced this autumn, replacing the Prompt Payment Code. This will include a number of payment standards for companies to sign up to, and they will be awarded gold, silver or bronze status depending on how quickly they pay their suppliers including small businesses.
Source: Build UK 26.9.24
