To motivate large companies to pay small firms and suppliers promptly, the UK government will conduct the Payment and Cash Flow review and scrutinize existing payment practices. Announcing this, Secretary of State for Business, Energy and Industrial Strategy Grant Shapps said that late payments by large businesses to small firms not only lead to cash flow problems but the latter have to spend a lot of time and resources chasing late payments from the companies they supply. The review will consider steps to combat late payments and also include a thorough examination of the existing payment reporting regulations and the Prompt Payment Code.
