Ministers announce the introduction of legislation to tackle late payments and protect small businesses

Largest crackdown on late payments in over 25 years as landmark Bill enters Parliament

Headlines

• Small Business Protections Bill introduced to Parliament to back small businesses with the toughest late payment regime in the G7
• Stronger new powers for the Small Business Commissioner to investigate, adjudicate disputes and fine persistent late payers with potential penalties worth tens of millions
• New 60-day cap on payment terms for large firms, mandatory interest on late payments, and action to ban the practice of retentions in construction

Click here to read the full news release issued by central government 19th May 2026