Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what action the Government is taking to ensure timely payments to small and medium-sized enterprises; and whether he plans to introduce legislation to ensure that payments to small and medium-sized enterprises are timely.

The Government knows how important tackling late payment is, especially for smaller businesses and has previously announced a package of measures to improve payment practices across the public and private sector.

The Reporting on Payment Practices and Performance Regulations 2017 came in to force this year. This statutory requirement increases transparency, providing small and medium-sized businesses with better information about large businesses they intend to trade with.

The Small Business Commissioner, created by the Enterprise Act 2016, will empower small businesses to tackle late payment; providing general advice and information to small businesses on matters such as resolving payment disputes.

The Public Contracts Regulations 2015, mandate that public sector buyers must include 30-day payment terms in new public sector contracts; and requires that this payment term be passed down the supply chain.