In our award-winning Fair Pay, Fair Play campaign, we highlighted the late payment epidemic plaguing small businesses across the UK. The Government has been proactive in attempting to end the worst kinds of poor payment practices, responding to FSB asks and most recently tightening up the Prompt Payment Code to get big companies to pay small partners on time.
We’ve made progress, but more must be done, and it must be done now. With the challenges of COVID-19, stronger action is more vital than ever to help small businesses protect their cash flow.
Where are we now?
March 2019
The Chancellor’s Spring Statement Commons Speech announced our Audit Committee recommendation as the first step to a late package reform package. He congratulated “FSB in particular on its tireless campaign on the issue.
June 2019
BEIS press released the full reform package with an FSB quote, confirming our Audit Committee recommendation and our second reform - of the Prompt Payment Code. She offered “great thanks to the Federation of Small Businesses and its Fair Pay campaign, which has campaigned so hard for movement from Government”.
September 2019
No.10 worked with us as the Cabinet Office announced it would implement our third reform. Every strategic supplier to the Government must pay 95% of invoices in 60 days or be struck off winning public contracts.
October 2020
Consultation to strengthen the powers of the Small Business Commissioner to help small businesses tackle late payments.
January 2021
The Government announces reforms to the Prompt Payment Code to ensure larger companies pay their smaller suppliers on time, with payment periods being halved to 30 days.
We're a proud supporter of the Good Business Pays movement
We’ve joined the Good Business Pays movement as part of our ongoing campaigning for shorter payment terms for small businesses – and here’s why you should too.
Small businesses are at the heart of our communities, employing 61 per cent of the workforce. Yet, around 50,000 firms close each year due to cash flow problems. If larger businesses paid smaller suppliers sooner, more small firms have the opportunity to thrive, create new jobs and boost our
economy.
We’re lobbying government to persuade all businesses to adopt better payment practices, but change can only happen if we all play our part.
Make a difference by signing up today, because good business pays.
Please note that when you click on the above link, you will be leaving FSB's website and entering the Good Business Pays portal. We would encourage you to carefully read both the terms and conditions and the privacy policy before you use or sign up to the services and products of Previse and Good Business Pays.
Dealing with late payments?
If late payments are causing you issues, our guides below can help.
How can I
avoid late payments?
Learn the nine strategies you can put in place today to help reduce the risk of late payments in the future, including payment terms and credit references.
Why are late payment letters so important?
Take control of your late payments with our top tips for getting invoices paid, from consistent communication to friendly letters.
What is the process for debt recovery?
Lost count of how many reminders you’ve sent? Find out about the legal action you can take to recover the money owed to you.
Support through your FSB membership
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