The Government Introduces Fines for Delayed Payments to Suppliers

• Fines are being introduced for companies for delayed payments
• Small businesses will receive new allowances
• 4 billion pounds have been allocated for financial support for startups

The government of Great Britain is preparing new measures to combat delayed payments, which harm small businesses. The leader of the Labour Party, Keir Starmer, emphasized that businesses that consistently delay payments will be subject to fines, which can reach millions of pounds.

Alongside the new initiatives, small businesses will receive expanded allowances for the imposition of fines on large companies for overdue payments. It is also planned to introduce a maximum term for payments of 60 days, with a subsequent reduction to 45 days.

Keir Starmer noted that many workers are forced to spend time on chasing payments instead of developing their businesses. Every day, around 38 businesses close due to delayed payments, which causes harm not only to the entrepreneurs but also to the economy as a whole.

As part of a broader support program for small enterprises, 4 billion pounds will also be allocated for startups, which includes 69 thousand loans for initial operations.

Business Minister Jonathon Reynolds emphasized that this plan is the first in the last decade and aims to improve the business environment and provide small and medium enterprises with the necessary financial support.

Tags: Europe/Politics/Economy