Government Tightens Prompt Payment Requirements for Suppliers
Published on: 14 November 2024
In a significant move announced at the Autumn Statement 2024, the UK Government is taking steps to address a longstanding issue impacting small and medium-sized enterprises (SMEs): late payments. Starting from 1 October 2025, the average invoice payment days threshold for Government suppliers will be reduced from 55 days to 45 days. This policy adjustment aims to unlock £20 billion tied up in unpaid invoices and support improved cash flow for SMEs across the UK.