Government consultation on prompt payments

 

 

The Government is consulting on new prompt payment rules as part of its small and medium business plan.

It proposes

Maximum payment terms of 60 days, with potential to reduce to 45 days

Interest on late payments to be mandatory

More powers for the Small Business Commissioner to undertake own initiative investigations

Additional powers to ensure accuracy of reporting and legally binding arbitration

Financial penalties for persistent offenders

Board level scrutiny of payment practices

Additional reporting on statutory interest payments

 

The BRC will hold a member meeting with the Small Business Commissioner and DBT