Measures were published today in the Prompt Payment Review
In his Autumn Statement the Chancellor announced that firms would be excluded from bidding for large (£5m+) government contracts if they have payment times of over 55 days by April 2024, reducing to 45 days by April 2025.
This was part of a range of measures published today in the Prompt Payment and Cashflow Review. The review found that while payment times have come down over the last decade, SMEs were, on average, owed £22,000 in late payments in 2022.
The review contains a number of key points highlighted in ACCA’s submissions to late payment consultations in recent months, including the need to strengthen the powers of the Small Business Commissioner’s Office, improve reporting requirements, enforcement thereof, and better signposting of tools and advice to support small businesses.
Key changes will include: