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Consultation launched on EU late payment measures

A consultation on EU legislation to combat the issue of late payment to British businesses has been published by the Government.

Business and Enterprise Minister Michael Fallon hopes that implementing the EU Directive will create a level playing field for UK businesses trading across member states.

Mr Fallon said: “The UK already has some of the strongest late payment laws in Europe which are now being copied across Europe. This will give a real boost to UK business by providing them with the confidence and certainty they need to work with overseas suppliers.

“But legislation alone cannot deal with the issue of late payment. Businesses need to make sure they have suitable measures in place to help themselves.

“Tackling late payment will free up millions of pounds in the supply chain, helping to boost the economy and safeguard the future of thousands of UK companies.”

The Directive states: public authorities will be required to pay suppliers within 30 calendar days of receipt of an undisputed invoice; businesses to business payment contracts should not exceed 60 days unless otherwise expressly agreed; default payment periods where terms have not been agreed will be 30 days; and compensation will by €40 minimum.

The consultation will run until October 19 2012, and transposition of the EU late payment directive is due to take place on March 16 2013.

This was posted in Bdaily's Members' News section by Tom Keighley .