UK Commercial Payments Bill: 60-day cap on payment terms for small suppliers

The government's Commercial Payments Bill, described as the largest late-payment crackdown in over 25 years, imposes a mandatory 60-day cap on the payment terms large firms can set for smaller suppliers, requires statutory interest at 8% above the Bank of England base rate on late payments, and bans withholding of retentions on construction contracts. It also gives the Small Business Commissioner new powers to investigate, adjudicate disputes outside court, and fine persistent late payers. The bill passed its House of Lords Second Reading on 9 June 2026, with a lead-in period before the rules take effect.