Complete Clarity Solicitors


New Powers for Business Groups to Tackle Late Payment

The UK Government has announced its intention to introduce tough new laws and bulk up existing codes of practice to tackle the issues of late payment and other unfair payment practices.

These measures include:

  • consulting on ways to tackle poor payment practices, such as by giving representative bodies greater powers to challenge grossly unfair payment terms and practices,
  • leading by example on public sector procurement,
  • new laws to increase transparency on the payment practices of large and listed companies and help change corporate payment culture,
  • toughening up the Prompt Payment Code, and
  • giving the Groceries Code Adjudicator the power to fine supermarkets for breaching the Groceries Supply Code of Practice.

“Large companies using their economic might to impose unreasonable terms on their suppliers causes real problems for small businesses,” explained Business Secretary Vince Cable. “It is a significant issue and there is agreement that we need to keep the pressure up to bring about real change.”

“This is about making the UK a fairer and more trusted place to do business,” he added.

The Government’s consultation on widening the powers available to representative bodies to challenge grossly unfair terms and practices in relation to late payment covers:

  • who might be covered by a representative claim (individual businesses or groups of businesses),
  • which organisations can bring a claim,
  • options for dispute resolution,
  • the resources available to bring a case, and
  • whether to further refine the definition of ‘grossly unfair’ payment practices.

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