Overview
- The government introduced the Commercial Payments Bill to Parliament on Tuesday, launching a crackdown on large firms that pay small suppliers late in what officials say closes 38 businesses a day.
- The draft law sets a hard 60‑day limit on payment terms from big buyers to smaller vendors.
- Late invoices would accrue mandatory interest set at 8% above the Bank of England base rate.
- The Small Business Commissioner would gain powers to investigate payment practices, resolve disputes, publicly name offenders, and issue fines that could reach tens of millions of pounds.
- The bill also bans retention withholds in construction and requires boards at serial late payers to explain poor records, changes that could reshape cash flow and governance in supply chains as the House of Lords begins line‑by‑line review.