Small Business Minister Margot James has released draft regulations which require large companies to publish details on how quickly they pay their suppliers. It has been confirmed by the government that the new regulations designed to encourage greater punctuality of payment will come into force as of April 2017 – ironically a year later than planned.
The “Duty to Report” rule will require large firms and limited liability partnerships to publish biannual reports on their payment practices and performance including the average time taken to pay supplier invoices. It is hoped that this will highlight bad practice and lead to improved standards, particularly in the construction industry.
Ms. James said “On Small Business Saturday, this Government will be celebrating the UK’s record number of small businesses, which are creating jobs and supporting local communities. Unfair payment practices and unnecessary red tape hamper their ability to grow and have no place in an economy that works for all.
“By shining a light on how large businesses pay their smaller suppliers, we want to empower small businesses and drive a real change in payment culture. I want to thank the individuals and business groups who have responded to the consultation and helped shape this policy.”