Businesswoman 'honoured' to attend 10 Downing Street to celebrate as new late payments laws announced

A Staffordshire businesswoman was among business leaders invited to Westminster today (May 19) to celebrate the introduction of legislation to tackle late payments and protect small businesses.

Ministers announced the introduction of the landmark legislation to end the scourge of late payments and help millions of sole traders, freelancers and family firms across the country that have been left chasing money they are owed.

The Small Business Protections Bill (formally known as the Commercial Payments Bill) delivers the toughest crackdown on late payments in a generation – putting a duty on large firms to pay smaller suppliers on time and giving small businesses the certainty they need to keep investing, supporting jobs and growing their communities.

Among those delighted to see the new legislation introduced was Helena King, who runs family business Euro-Matic in Cannock. Staffordshire. The business, a multi-award-winning manufacturer and global leader in hollow plastic balls - including playpen balls.

She was among small business owners owners and Federation of Small Businesses (FSB) representatives invited to Downing Street to mark what leaders have called a “historic moment for small firms”.

Prime Minister Sir Keir Starmer and Business Secretary Peter Kyle hosted the event to celebrate the change in the law which will back small businesses with the toughest late payment regime in the G7 and introduce a 60-day cap on payment terms for large firms, mandatory interest on late payments - set at eight per cent above the Bank of England base rate, and action to ban the practice of withholding retention payments under construction contracts.

It will also mean stronger new powers for the Small Business Commissioner to investigate poor payment practices, adjudicate disputes and fine the worst offenders - with potential fines that could be worth tens of millions for persistently late payers. 

The Prime Minister said the change would bring about the “toughest action on late payments in a generation, so small businesses get paid on time and get the backing they need to grow, create jobs and serve their communities”.

Business Secretary Peter Kyle said:  “Costing the UK economy £11 billion every single year, late payments choke growth, cost jobs, and force too many good businesses to close. That ends today.

“Through this landmark bill we are delivering the toughest payment reforms in over a generation, to give the UK the strongest legal framework in the G7, and back small businesses with the certainty they need to grow and thrive.”

Helena King, who runs Euro-Matic with her husband Paul, welcomed the new legislation after a trip to London where she got to highlight the plight of businesses directly to the Prime Minister and Business Secretary.

She told the Express & Star she has sometimes had to pay salaries from her savings to stay afloat while waiting for payments.

Mrs King said: “Late payments are something that affect us personally as a smaller business. Like many SMEs, cash flow can sometimes become incredibly challenging, to the extent that we find ourselves juggling personal finances simply to ensure payroll is covered and the business keeps moving forward.

“So when the Federation of Small Businesses got in touch asking whether I would like to attend a celebratory event at Number 10 following last week’s King’s Speech announcement regarding new legislation to protect small businesses from late payments, I was absolutely delighted to attend on behalf of small businesses everywhere.

“It was also reassuring to spend time with a number of other business owners who all shared very similar frustrations and experiences. Different industries, different businesses, but so many common challenges.”

She told of an instance where she was owed £70,000 to £80,000 over 100 days and said this meant she had to take personal money from her savings accounts to make payments and cover rent.

Large businesses often don’t realise the “human impact” of late payments that keep small business owners up at night worrying about how they will pay their bills and their staff, she said.

It was “an honour” to be asked to attend Westminster for the announcement with the Prime Minister in attendance, she said - adding: “It was very surreal meeting everybody and I managed to talk to other small business owners. It was a great experience, although there’s so much more they (the government) could do for local businesses.”

She was chuffed to have the chance to explain to the Business Secretary about Euro-Matic’s water-filled floating ball technology and how it could potentially transform parts of the UK water system through improved water quality and reduced evaporation, and then shocked to see Sir Keir Starmer walk into the room as she was mid-conversation.

She added: “Sir Keir spoke with the group for a short while and, importantly, it felt like everyone was genuinely able to speak openly about the realities and challenges of running a business.”

She and other small business owners also had a chance to talk to the Business Secretary about how government support could help UK businesses grow internationally and some of the challenges businesses are navigating - and she said afterwards that it was “an experience I will never forget”.

The Bill, part of a broader government plan to back small businesses, builds upon and strengthens legislation first laid out in the 1998 Late Payment of Commercial Debt Act, more than 25 years ago, to give the strongest legal framework on late payments in the G7.

This should help to turn the tide on late payments which close 38 UK businesses every single day because they are not paid on time - the equivalent of 266 a week, and over a thousand in any given month.