New measures to tackle late payments, including levying financial penalties against large businesses who are persistent late payers could have gone further, according to hauliers.
The government said the small business commissioner would be given new powers, including the ability to settle late payment disputes out of court through a new adjudication function.
Other actions to clamp down on late payments included a 60-day cap on payment terms to be imposed on all large firms when paying smaller suppliers.
Mandatory interest will be added to late payments, with a requirement for all commercial contracts to include statutory interest set at 8% above the Bank of England base rate.
Emma Jones, small business commissioner, said: “I am on a mission to make life easier for small firms by getting money moving faster through the economy by tackling late payments.
“The measures the government has announced today will strengthen the role of my office in taking on the worst payers alongside ensuring small businesses have a stronger voice on payment terms and late payment interest.”
The RHA welcomed the crackdown on what it described as a “late payment culture” blighting businesses.
RHA MD Richard Smith said: “Late payments costs the UK economy an estimated £11bn every year and puts small businesses at a competitive disadvantage.
“We’ve long called for stronger safeguards on payment terms to protect business against unscrupulous practices.
“This measure will offer some relief to haulage, coach and van operators grappling with huge fuel price increases, but ministers could have gone further and set the cap at 30 days to further ease their cashflow challenges.”
