IoD welcomes new government measures to crack down on late payments
Responding to the publication of the Government’s response to the 2025 Late Payment Consultation, Liz Barclay, IoD Special Advisor for Small Business and Entrepreneurship and former Small Business Commissioner, said:
“We welcome today’s announcements. New measures to crack down on late payments are a positive and important step in tackling this long-standing issue, which continues to place a significant burden on small suppliers across the UK.
“Too many small firms face delayed payments, either because payments are overdue or because long payment terms have been imposed in contracts by more powerful customers. Poor payment practices undermine cashflow, limit growth, and in some cases, threaten supplier survival. Stronger action from government, including enhanced powers for the Small Business Commissioner and clearer rules around maximum payment terms and transparency of payment performance, reflects a meaningful shift towards greater accountability and the ending of our poor payment culture
“However, so far, this is an outline. The detail that will sit behind the proposals is crucial and implementation is urgent. Real change will also depend on robust enforcement – ensuring there are no loopholes that allow poor payment behaviour to continue unchecked through exemptions or weak compliance.
“We look forward to continued engagement as these proposals are developed to ensure they deliver lasting and effective change.”
