UK late payment rules: Effectively influencing policy change can take many years and requires trusted alliances with and insights from a range of key stakeholders including our members.
A ‘silent killer’
A well-functioning cashflow and trade credit environment is a fundamental feature of a healthy business ecosystem and when absent is a significant barrier to the growth of small and medium sized enterprises (SMEs). SMEs have described late payment as a ‘silent killer’ while UK government research estimates the cost of chasing overdue invoices to be £11bn annually.
ACCA, on behalf of its members, has consistently highlighted the critical importance of this area to the Small Business Commissioner and the UK government.
In short – this matters.
ACCA’s policy in action
For a number of years now, our call to action for policy makers has been clear - concrete measures are needed to support SMEs in tackling the late payment crisis. We have stressed that the approach needs to be practical - balancing business burden and the risk of any negative perceptions of the UK business environment against critical change needed. We have stressed that proposed regulations must be proportionate. At each stage in the ongoing reform process, drawing upon the professional accountancy knowledge of other regulatory regimes, we have suggested constructive and practical solutions to strike the right balance.
Status of the UKs late payment rules
The Small Business Protections Bill (formerly known as the Commercial Payments Bill) was introduced to Parliament on 19 May 2026 - a key milestone in ACCAs advocacy effort to encourage informed government action on this critical issue. A summary of the government proposals is available here and the progress of the bill can be tracked here.
Glenn Collins, head of technical and strategic engagement, ACCA UK, said: ‘It is good to see a government taking such decisive action on the scourge of companies not paying promptly. Importantly the proposed regulation focuses on large businesses not paying smaller businesses rather than a blanket approach to all.’
Partnership in action for policy change
No one said this would be easy – solving a persistent problem takes persistence and partnership. Our work on this issue demonstrates how effective influencing for change can take many years, including building trust and alliances with a range of key stakeholders.
Through consistent engagement by our members on this topic, which is hugely appreciated, we have kept abreast of challenges and obtained invaluable insights to help shape our call to action for policymakers in this key area.
Engagement with members and the Small Business commissioner
ACCA is very proud of the deep and ongoing relationship with the Small Business commissioner (SBC), Emma Jones (and previous SBCs, since the role was established).
Our engagement with members and the SBC has taken many forms - regular surveys, webinars, roundtables (with successive SBCs) and events on this business-critical area. Our work with the SBC has gathered some pace since 2022, the post covid era. We have shared member insights on an ongoing basis, with the office of the SBC in a number of ways; sharing ACCA survey data (including GECS data relating to UK SMEs), insights from members and their clients and arranging webinars and roundtables with the SBC, attended by ACCA members and other stakeholders from across the UK.
Meeting with policy makers and government representatives
We also met with policy makers and government representatives to focus attention on this issue and to set out our views. Government representatives have attended a variety of events, where they heard first-hand from our members. We also highlighted the issue in our responses to government inquiries.
Responding to consultations
We responded to consultations on the matter, most recently in October 2025 - Late payments: tackling poor payment practices (PDF, 266KB). Our response followed engagement with the Department for Business and Trade (‘DBT’) prior to the issuance of the consultation where we set out possible solutions. ACCA also met with DBT representatives to discuss the consultation once it had been issued and heard from a government representative on the proposals.
Convening events
We continue to organise events in this key area. Earlier this year ACCA was proud to work alongside Chambers Wales Southeast, Southwest and Mid, and the Office of the Small Business Commissioner, to offer a practical, solutions-focused event in Cardiff on tackling late payments. The event attracted over 80 attendees from across the SME community, as well as representatives of Government, academia and tech firms.
What’s next after the Small Business Protections legislation?
While the government proposals are a decisive moment in the fight to end late payments our work does not end here.
Glenn Collins, Head of Technical and Strategic Engagement, ACCA UK, said: ‘We look forward to working with the Small Business Commissioner, our members and the wider business community to ensure the required technical, accounting and auditing adjustments are not onerous to implement.’
We expect the legislation will be issued in the coming weeks and are following developments with interest. Our monitoring of this critical area will be ongoing. We are very grateful for member insights, including those shared via our Global Economic Conditions surveys. These inform the measurement of outcomes and any further engagement with the small business commissioner and government officials.
