Government drive to support small business will include startup loans for 69,000 companies worth £4bn
Keir Starmer has warned businesses who persistently delay payments to their suppliers that it is “time to pay up” as the government prepares to impose fines and penalties on repeat offenders.
In what Labour has billed as the toughest crackdown on late payments in a generation, the business secretary, Jonathan Reynolds, will say on Thursday that the changes will slash a cost to the economy that has escalated to £11bn a year.
As many as 38 businesses shut down each day partly owing to late payments, the government said, hurting tradespeople, shopkeepers, startup founders and family-run firms.
The planned changes will include handing the small business commissioner powers to impose fines, potentially worth millions of pounds. Established in 2016 to tackle late payments, the watchdog will also be able to carry out spot checks, verify claims and impose deadlines to clear a backlog of disputes.
