Big firms could be fined for paying suppliers late
Large companies that persistently fail to pay their suppliers on time could face fines under government plans to help smaller businesses.
Draft proposals unveiled on Thursday would also limit invoice terms to a maximum of two months, dropping to 45 days in five years' time.
Business Secretary Jonathan Reynolds unveiled the plans alongside research blaming late payments for the failure of thousands of businesses a year.
Opposition parties welcomed the move, but said firms were suffering under Labour due to National Insurance rises at the Budget.
The government claims the change would mark the biggest shake-up in payment rules since firms gained powers to charge interest on late invoices in the 1990s.
The issue poses a particular problem for small firms, which usually have smaller cash reserves and are more affected by time wasted chasing late bills.
Under the new proposals, which will be subject to a 12-week consultation, the small business commissioner - a post introduced under the Conservatives in 2017 - would gain powers to fine late-paying companies.
