The King’s Speech puts late payments firmly back on the business agenda. But the real test will be whether new rules ensure large organisations take accountability for how and when they pay suppliers or just pay the fines.

Late payments aren’t an unavoidable fact of life; they are often a failure of governance, accountability and outdated payment processes. Ultimately, paying late is a symptom of an organisation having no control over its spend — and with greater scrutiny now on the table, that lack of control is harder for businesses to ignore.

Delayed payments go far beyond cash flow management. They strain trusted supplier relationships, disrupt supply chains and, in severe cases, push smaller suppliers to the brink.

That is why the government’s measures to tackle late payment should be closely aligned with its commitment to driving e-invoicing adoption announced in the 2025 Budget. Together, these two measures will help force bad payers to modernise their payment processes.

Regulatory change will help, but enforcement alone will not eliminate late payments if businesses continue relying on fragmented and manual invoicing processes. Without total visibility of cash flow and suppliers, payments will continue to be late and organisations risk non-compliance, with the Small Business Commissioner now able to investigate and fine businesses with poor payment practices.