Late payments data shows improvements ahead of new legislation

New official statistics have revealed large businesses are improving payment practices and the time taken to pay suppliers ahead of new legislation to strengthen protections for small businesses against late payments.

Since data began being collected by government in 2018, the time large businesses take to pay their suppliers has decreased and the proportion of invoices paid late by large businesses has been steadily decreasing. In 2025, large businesses paid 15% of invoices late, down from 25% in 2018, a 10 percentage point decrease.

The statistics are based on data reported by businesses under?The Reporting on Payment Practices and Performance Regulations 2017, which require large UK businesses to report on their payment practices, policies and performance twice-yearly.

Challenges however remain with the manufacturing sector consistently reporting the longest payment times as well as the highest proportions of invoices paid late, compared with other sectors across the UK. There were also regional disparities: businesses in the capital have the shortest payment times and among the lowest proportions of invoices paid late, compared with other regions and nations.

The publication of data from 2025 comes as the government introduces the Commercial Payments (Late Payments) Bill to tackle late payments and support small businesses. The legislation proposes the most significant reforms to payment practices in over 25 years, aiming to ensure businesses are paid on time and to strengthen accountability across supply chains.

Every year, late payments cost the economy £11 billion and result in thousands of business closures. For many business owners, the impact is immediate, affecting whether they can pay staff, cover costs, and invest in growth. Emma Jones, Small Business Commissioner, commented:

“Small firms tell me, and our research has shown, that they spend too many precious hours chasing debt. This is limiting capacity to focus on growth, and we want to change that. These figures show that businesses have made a conscious effort to change and improve their payment practices and that should be recognised and celebrated. But the data also shows the need for improvement in key sectors for our economy. I therefore welcome the Commercial Payment Bill and the measures it will take to improve payment performance across the country.”