Big firms could be fined for paying suppliers late

Government plans to fine large companies for persistent late payments to suppliers aim to support smaller businesses, limiting invoice terms to a maximum of two months, decreasing to 45 days in the future. Late payments have led to thousands of business failures annually, with small firms particularly affected due to limited cash reserves. Under the proposed changes, companies failing to pay a quarter of invoices on time may face fines double the late-payment interest owed, offering relief to the estimated 1.5 million affected businesses.