meta_id 2996240

On March 24, 2026, the UK government published its response to its consultation on late payments . The consultation response confirms that the following measures will be taken forward, and introduced as new legislation as soon as Parliamentary time allows: Small Business Commissioner (SBC) powers Power to investigate: Providing the SBC with the power to investigate businesses suspected of poor payment practices or inaccurately reporting payment performance. Power to adjudicate: Providing the SBC with the power to settle payment disputes outside of the court process. Power to fine: Providing the SBC with the power to fine businesses, including significant potential fines for large companies that persistently pay their suppliers late or fail to comply with late payment legislation. Wider later payment measures Board-level scrutiny of payment practices: Introducing a requirement for the boards or audit committees of any persistently late-paying large company to publish commentary on why payment performance is poor and what remediatory actions. Maximum payment terms: Imposing maximum payment terms of 60 days, with strictly limited exemptions. Deadline for disputing invoices: Introducing a statutory time limit for raising disputes. Mandatory interest on late payments: Introducing a requirement that all commercial contracts will contain a right to statutory interest at 8% above the Bank of England base rate. Additional reporting on mandatory interest: Introducing a requirement for large companies to report upon interest payments. Retention payments under construction contracts Prohibition of retention payments: Proposing to ban the practice of deducting and withholding of retention payments under the terms of a construction contract. The publication was accompanied by a letter from the Minister for Small Business and Economic Transformation to businesses, MP Blair McDougall, notifying businesses of changes to government policy on late payments.