A record number of large firms in the UK are delaying payments to suppliers, with small businesses facing waits of more than two months on average to be paid, according to new analysis by campaign group Good Business Pays.
The review of nearly 5,000 company filings under the UK’s Payment Practices and Performance Regulations found that between January and September, businesses paid a staggering £109.2 billion in invoices late. More than half of all invoices were settled after their due dates, while 127 companies admitted taking more than 80 days on average to pay suppliers — up from 85 earlier this year.
The delays are having a devastating impact on small and medium-sized enterprises (SMEs), which rely heavily on prompt payments to manage cash flow. Government estimates suggest that late payments affect 1.5 million SMEs across the UK, stifling investment and costing thousands of jobs.
High-profile offenders
The study highlighted several well-known names among the worst offenders. Food producer Baxters reported that 90% of its invoices were paid late, while broadband provider Hyperoptic disclosed an average payment time of 158 days. Hyperoptic later claimed the figure was a filing error.
BMW UK was also cited, with nearly £2.3 billion worth of payments flagged as delayed. However, the company said the figures represented internal transactions rather than overdue supplier invoices.
Terry Corby, chief executive of Good Business Pays, said the situation had deteriorated significantly since monitoring began in 2023. “This year has been worse than at any point since we started. We must now see real accountability and real consequences for poor payment practices,” he said.
He pointed to Coca-Cola Europacific Partners, which previously faced criticism for taking 110 days to pay suppliers but has since introduced faster payments for small businesses, as a model other firms should follow.
Weak enforcement and government response
Large companies and LLPs have been legally required since 2017 to publish their payment practices. Yet the Department for Business and Trade estimates that only 50–60% of eligible firms actually comply.
Small business commissioner Emma Jones acknowledged that her office has limited power, lacking the authority to fine persistent offenders. Enforcement capabilities are not expected to be introduced until 2028, leaving many SMEs vulnerable in the meantime.
The government has described late payments as a “scourge” on the economy, costing nearly £11 billion a year. Official data shows that 38 small businesses are forced to close every day due to cashflow pressures linked to late payments.
In a bid to tackle the problem, new procurement rules introduced this week require government contractors to pay suppliers within 45 days. Business groups, however, argue that far stronger action — including financial penalties for non-compliance — is needed to protect SMEs.
