Late payments bill progress in Lords

The Commercial Payments Bill cleared committee stage in the Lords this week. Late payment kills viable businesses and drags on the whole supply chain, so this is a meaningful step forwards.

For HGV, coach and van operators, this is a cash flow issue above all. Many firms pay for fuel, wages and tolls up front, then wait months to be paid for work already done. All of that against a backdrop of low margins, rising costs and insolvency rates remaining high.

Companies in road transport are run by working people. Many are small and medium-sized firms, often family-owned and economic anchors in their communities. They cannot afford to act as a bank for larger customers. Public bodies should set the example. If businesses are being asked to pay on time, every authority contracting with industry should meet the same standard.

If implemented and enforced effectively, through continued dialogue with industry, the measures in this bill could improve financial resilience. We will keep engaging with government, MPs and Peers through report stage when Parliament returns in September. There's more to do, but this is a positive step.