The Government is launching a review into the slow and late payment of small company debts. Business Secretary Grant Shapps is launching the payment and cashflow review to “unshackle small businesses” from “exploitative” payment practices by large companies.
The Government says small firms have over £23.4bn currently owed in outstanding invoices. Ministers say the review will “scrutinise existing payment practices and the measures in place to make sure small firms are not ripped off by their larger clients.” The review will look at the Prompt Payment Code, the rules that force large companies to disclose compliance, and the role and powers of the Small Business Commissioner.
While the Government vowed to tackle the problem of outstanding invoices following a consultation that closed in 2020, there has been little action. Terry Corby, chief executive of Good Business Pays, a campaign to encourage companies to fast-track payments, questioned the decision to launch “yet another review”, saying: “The recession is here and now, not in 2025.”
Read more: Daily Mail
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