Made in Britain extends the UK government’s invitation to respond to the open consultation on tackling late, long, and disputed business-to-business payments, as well as the use of retention clauses in construction contracts.
Led by the Department for Business and Trade (DBT), this is set to be the most significant legislation on late payments in over 25 years, aiming to strengthen cash flow, protect jobs, and support sustainable growth, particularly for small and medium-sized enterprises (SMEs) across the UK.
Prompt and fair payment practices align closely with the Social Value priorities in public procurement. The Environmental & Social Value (ESV) Certification recognises and promotes members’ positive contributions to the UK economy.
Why it matters for manufacturers
Late or long payment terms can put significant pressure on SMEs, which often have less cash in reserve to buffer delays. Disputed or withheld payments disrupt supply chains, reduce investment in innovation, and can result in business failures. For the construction sector, retention clauses can tie up working capital and create additional risk.
The consultation seeks views on legislative measures to address:
- Late payments: when invoices are not paid within agreed terms (30 days where no terms are specified)
- Long payment terms: agreements that extend beyond 60 days
- Disputed payments: delays or reductions due to disagreements over goods or services supplied
- Retention payments in construction: where retained funds are lost through insolvency or delayed/non-payment
How to respond
Deadline: 23 October 2025
Complete the consultation survey here
Made in Britain encourages members to respond directly and also to contact us if you would like to share your experience of late payment practices or collaborate on a collective response. Your insights will help ensure the voice of British manufacturers is heard.
Get in touch: trade@madeinbritain.org
By Made in Britain 1 day ago | Government & Supply Chains