The Department for Business, Energy and Industrial Strategy (BEIS) has published a consultation on new powers for the Small Business Commissioner to tackle the ongoing issue of late payments.
In March 2020, responsibility for the voluntary Prompt Payment Code moved to the Small Business Commissioner following the Government’s call for evidence on how to create a responsible payment culture for small businesses (see our blog post for further details).
The current consultation seeks views on proposals to strengthen the Commissioner’s ability to assist small businesses, by enabling them to get redress in respect of late payments. The proposed additional powers for the Commissioner include the ability to:
- consider complaints from small businesses about other small businesses;
- take enforcement action against businesses that do not comply with information requests; and
- take enforcement action against businesses that are found to have poor or unfair payment practices towards small businesses.
The consultation will close on 24 December 2020.