The British Printing Industries Federation (BPIF) has welcomed news that the Government intends to strengthen legislation in order to tackle the UK’s poor payment culture.
Late payments and long payment terms continue to place significant strain on businesses across the printing industry, particularly SMEs. The BPIF has consistently called for stronger measures to ensure fairer payment practices – including in its recent Priorities for Print 2025-27 lobbying document – based on the views of its membership.
Under the proposals – to amend the Late Payment of Commercial Debts (Interest) Act 1998 – payment terms would be capped at 60 days for all businesses. Following further consultation, the Government plans to reduce the cap to 45 days over the next five years. The legislative changes also include a 30-day deadline for raising invoice disputes and mandatory statutory interest on late payments.
A new piece of legislation will also be introduced to give the Small Business Commissioner powers to issue financial penalties to businesses who persistently pay their suppliers late.
While the Federation welcomes the action, it stresses the need to get the proposals right. The consultation period will be crucial to ensure the legislation delivers meaningful improvements without unintended consequences, including the risk that businesses currently providing shorter terms may be encouraged to extend them to the new statutory limit.
The Federation will consult its Regional Boards, Policy & Public Affairs Committee and wider membership to gather views to feed back to the Department for Business & Trade. The consultation is open until 23 October 2025.
BPIF CEO Charles Jarrold said: “This is a positive step forward for our members and for the wider business community, and we are pleased the Government has listened and plans to take legislative action. Late payments and long payment terms – sometimes up to 120 or 180 days – can seriously impact cash flow, investment plans and growth. We intend to work with policymakers to ensure the proposals are effective, and to minimise any adverse impacts. We look forward to engaging closely with our members to help shape that response.”
