Consultation outcome

Business payment practices and policies: duty to report

This consultation has concluded

Download the full outcome

Detail of outcome

This document sets out the government response to the consultation responses received. It explains:

  • which businesses will be in scope of the duty
  • the ‘metrics’ against which businesses will need to report
  • how and when businesses will need to report
  • the sanctions for not reporting

It also includes revised draft regulations.

Feedback received

Detail of feedback received

We received 59 responses to the consultation. These mainly came from:

  • business representative bodies
  • trade organisations
  • professional bodies

We also had responses from large businesses in the retail and construction industries. A full list of respondents is available in Annex 1 of the summary of responses.

Next steps

On 20 March 2015 we published plans for implementing the new report requirement.

Original consultation

This consultation ran from to

Summary

We’re asking for views on our proposals to make companies report on their payment performance to help create responsible payment practices.

Documents

Annex E: duty to report on payment practices and policies - impact assessment

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Consultation description

We want to know if we should ask companies to report on a series of measurements that will tell us about their payment performance. We propose to include the:

  • proportion of invoices that are paid beyond the payment terms
  • proportion of invoices paid within 30 days
  • proportion of invoices paid over 30, 60 and 120 days
  • the average time taken to pay invoices

We also want your views on whether companies should also provide a statement that would help the supplier understand the company’s payment practices and performance.

These proposals would allow suppliers to compare different customers against a standardised time frame of payment. The reporting procedure would be easy for companies to understand and straightforward to complete. It would also provide useful data for suppliers to use.