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23 Oct 2025

We will work with Scottish Government to tackle late payments – Murray

We will work with Scottish Government to tackle late payments – Murray

UK ministers will work with the Scottish Government to crack down on companies which persistently pay their suppliers late, the Scottish Secretary said.

Companies responsible for repeated late payments could face fines running into the millions under a crackdown planned by the UK Government.

As part of a series of measures intended to help small businesses, legislation to tackle late payments will be introduced.

As the issue could touch on areas devolved to Holyrood, Sir Keir Starmer’s Government is offering to legislate on a UK-wide basis with the consent of MSPs.

This usually requires MSPs to pass a legislative consent motion.

Scottish Secretary Ian Murray said: “As someone who ran a number of small businesses before entering politics, I know these enterprises are the backbone of our economy, and often the heart of local communities the length and breadth of Scotland.

“Crucially, we are taking action to tackle late payments, ensuring vital cashflow for small businesses.

“It is imperative that businesses in Scotland also benefit from these reforms, so we will work with the Scottish Government to ensure these new protections are UK-wide.”

Guy Hinks, chairman of the Federation of Small Businesses (FSB) Scotland, said: “Late payment is a blight on thousands of small businesses across Scotland.

“Our latest research shows two-thirds experienced problems in the last quarter and nearly four in 10 found the situation was getting worse.

“We’re pleased to see ministers have listened to what FSB has been saying and are taking firm action to tackle the problem.”

A Scottish Government spokesperson said: “The Scottish Government welcomes efforts to tackle late payments, which are a particular challenge for small and medium-sized enterprises.

“We will continue to work with the UK Government on developing these measures as part of our commitment to creating stability in the business regulatory environment.

“Small businesses in Scotland benefit from a non-domestic rates relief package worth an estimated £733 million and the Small Business Bonus Scheme.”

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