Sullivan
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In a briefing note prepared for ITFA, Sullivan has highlighted the UK Government’s renewed push to address late payments through proposed reforms to the Late Payments Act. First introduced last year, the proposals would cap payment terms at 60 days for transactions involving small and medium-sized enterprises (SMEs). The UK Government says it is aiming to improve cash flow and reduce pressure across supply chains, but which in reality many believe this may disadvantage UK SMEs.

The reforms were confirmed in the King’s Speech to Parliament on 13 May, in line with the Government’s declared commitment to fairer payment practices and stronger support for SMEs. If implemented, the changes could significantly affect contractual arrangements, particularly in industries with complex supply chains.

The firm’s briefing note outlines key elements of the proposals and their potentially significant impact on businesses, including the need to review payment processes, financing structures and supplier relationships.

ITFA says it intends to continue lobbying the UK government to reconsider the details of the proposals.

To read the full Sullivan briefing note on the proposed Late Payment Law Reforms or please contact Geoffrey Wynne for further information.