The UK will strengthen its Prompt Payment Code (PPC) to push larger firms to pay small businesses quickly.
Under the changes, large companies that have signed up to the code must pay small businesses within 30 days instead of 60.
The government estimates there are £23.4bn worth of outstanding late invoices.
The issue is more prevalent than ever due to the impact of the pandemic.
The small business minister Paul Scully said the changes would help the UK’s economic recovery.
“Our incredible small businesses will be vital to our recovery from the coronavirus pandemic, supporting millions of livelihoods across the UK,” he said, in a media release.
The voluntary code currently has more than 2,800 signatories, who are required to pay 95% of their invoices within 60 days or else be publicly struck off the code until they make substantial changes to their payment practices.
Under the changes, payments to … Read the rest...