UK Tightens Rules on Late Payments to Help Smaller Firms
The UK government has announced new measures to address the issue of late payments to small businesses. Under the proposed rules, large companies will be required to pay invoices within 30 days, down from the current 60-day standard. Additionally, the government will have the power to fine firms that repeatedly fail to pay on time, and public sector bodies will be obligated to pay smaller suppliers within 30 days. This move is aimed at supporting smaller businesses, which often struggle with cash flow due to late payments from larger customers. By enforcing stricter deadlines and penalties, the government hopes to improve the financial stability and growth prospects of these smaller firms, which are seen as crucial to the UK's economic development. The measures are part of a broader strategy to create a more favorable business environment and drive economic growth in the country.
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