Tackling late payments in business-to-business transactions
October 23, 2025
The UK Government’s Late Payment Consultation proposes new legislation to improve payment practices, including stricter reporting requirements for large firms, stronger enforcement powers for the Small Business Commissioner, and potential reforms to construction retentions.
SNIPEF welcomes the renewed focus on addressing late and unfair payments, which continue to undermine small and specialist contractors across the construction sector. However, we highlight that the proposals remain too focused on large companies, with many payment issues arising further down the supply chain among medium-sized subcontractors.
We support statutory payment limits, stronger enforcement, and fairer retention practices, but stress that reforms must be practical, proportionate, and effective for SMEs. A truly fair payment culture must apply across all tiers of the supply chain, ensuring small plumbing and heating businesses are paid on time and can operate with confidence and stability.
