LCCI Welcomes Government Crackdown on Late Payments

Tuesday 24 March 2026

Late payments remain one of the most damaging and persistent challenges facing SMEs across London. The scale of the issue cannot be overstated, with an estimated £11 billion lost to the economy every year, and around 38 businesses forced to close each day due to cashflow pressures caused by overdue invoices. For many micro and small firms, delayed payments are an existential threat that limit their ability to invest, grow and, in some cases, survive.

The London Chamber of Commerce and Industry (LCCI) and the capital’s small businesses welcome the Government’s decisive crackdown on late payments. Strengthening the powers of the Small Business Commissioner, introducing significant fines for persistent late payers, capping payment terms and increasing board-level scrutiny, represent a vital step forward and send a clear signal that this issue can no longer be ignored.

The announcement is particularly timely given the current challenges facing SMEs including sustained pressure from inflation, rising taxes and increasing regulatory burdens, which continue to dampen confidence. Ensuring prompt and reliable payments will provide a vital boost to cashflow and confidence across the small business community.

To ensure the legislation is effective, the Government must prioritise consistent enforcement, proportionate penalties and clear communication so that poor practices are firmly addressed.

This is an opportunity to reset the UK’s payment culture and LCCI stands ready to work closely with the Commissioner’s office to support the delivery of the new framework. Moving from late payment being an entrenched norm to on-time payment becoming standard practice will unlock growth, drive innovation and support a stronger, more resilient economy.

ENDS