(Commonwealth_Europe) The Association of Chartered Certified Accountants (ACCA) has called on the UK government to take stronger and more practical action to tackle the long-standing issue of late payments that continue to burden small businesses across the country. The organisation says that the government’s consultation on late payment practices is a step in the right direction, but what’s now needed are measures that are realistic, easy for businesses to adopt, and capable of delivering real change.
According to ACCA’s latest research, carried out in September 2025, more than a third, about 35.6%, of small and medium-sized enterprises (SMEs) in the UK have faced problems getting paid on time. These delays, the group says, are more than just an inconvenience; they stifle growth, drain cash flow, and make it harder for small firms to plan and invest for the future.
ACCA expressed broad support for the government’s ongoing consultation but urged ministers to focus on clear, workable solutions. One of its key suggestions is that large companies should be held directly accountable for their payment practices, either through their audit committees or a responsible senior executive where such committees don’t exist. This, ACCA says, would help improve transparency and allow suppliers to make more informed decisions about who they do business with.
The organisation has also pushed for a faster rollout of the proposed 60-day maximum payment term for UK businesses. However, it wants this to be introduced in a way that doesn’t overburden companies or slow down implementation. Glenn Collins, ACCA UK’s head of technical and strategic engagement, said that adopting a “comply or explain” rule would strike the right balance. “This is a more pragmatic approach, as exceptions will be inevitable,” he explained. “Such an approach will help avoid creating a negative perception of the business environment while still ensuring that suppliers are fully informed before entering contracts.”
ACCA also wants to see the Small Business Commissioner (SBC) given greater authority to deal with persistent late payers. Joe Fitzsimons, ACCA’s policy lead for the UK and EEMA, said that meaningful change could only happen if the commissioner is given stronger powers and the resources to use them. “It’s clear change is needed to tackle the late payment issue,” he said. “This would be best achieved by giving the SBC greater power. However, any additional powers must be matched with adequate resourcing. Adopting the Polluter Pays Principle, where persistent late payers bear the costs of the SBC’s investigative work, would clearly help.”
At the same time, ACCA has urged caution over introducing mandatory statutory interest on overdue payments right away. It believes that the focus should first be on strengthening the SBC and implementing other reforms. The group says that mandatory interest should only be considered after these measures are in place and reviewed, and only if no real progress is seen.
Collins encapsulated the ACCA’s stance, asserting that the era of partial solutions was over. “The issue of late payments has gone on too long. We need to ensure this doesn’t get bogged down again. We’ve made practical suggestions to the Department for Business and Trade that meet the needs of businesses of all sizes. The government should act quickly to put these solutions into place and help kickstart growth.”
In a separate development, ACCA recently signed a memorandum of understanding with the Association to Advance Collegiate Schools of Business (AACSB International). The partnership aims to support business education and strengthen ties between professional accountancy and academia, another step, ACCA says, toward building a stronger and more sustainable business environment in the UK and beyond.
