Small Business News
FSB Welcomes Historic Late Payment Reforms in King’s Speech
The Federation of Small Businesses has welcomed new legislation aimed at tackling late payments, calling it an historic moment for small firms across the UK.
The Federation of Small Businesses has welcomed the Government’s formal commitment to introduce stronger legislation aimed at stamping out late payment practices that have long affected small firms.
Responding to the King’s Speech, FSB Policy Chair Tina McKenzie described the announcement as an “historic moment” for small businesses, following years of campaigning for fairer payment practices.
“Late payment destroys thousands of viable small firms a year, damages growth, hits confidence, and keeps hardworking business owners up at night.”
Why late payment matters
Late payments create serious cash flow challenges for small firms, making it harder for business owners to pay wages, manage bills, meet tax obligations and invest in future growth.
FSB has argued that larger businesses have too often relied on smaller suppliers as a form of free credit. The proposed legislation is expected to help create a fairer trading environment for SMEs.
Energy brokers and tourism also highlighted
The King’s Speech also included proposals to regulate third-party intermediaries such as energy brokers and consultants. FSB welcomed the move, saying it could help end hidden commissions and unfair sales tactics.
However, the organisation raised concerns around proposals to increase visitor levies in England, warning that any future legislation must be carefully designed to avoid placing additional pressure on tourism and hospitality businesses.
A step forward for small firms
FSB says the reforms show that the challenges facing small firms are being recognised at the highest level, with stronger protections needed to support growth, confidence and fair business practice.