Late payments continue to be one of the most damaging issues facing small and medium-sized enterprises (SMEs), and the UK Government is now taking further action to address this persistent problem.
The Department for Business and Trade has launched a public consultation on new legislative proposals aimed at strengthening protections for businesses—especially SMEs—against poor payment practices. These proposed changes could have a major impact on the financial health and sustainability of local businesses here in Omagh and the wider Fermanagh and Omagh District.
Why Late Payments Matter to Local Business Owners
When a business isn’t paid on time, it creates a ripple effect. Cash flow dries up, suppliers go unpaid, staff wages are put at risk, and the business may even be pushed toward closure. This is particularly true for smaller businesses and start-ups that don’t have large reserves to fall back on.
In rural economies like ours, where businesses often operate on tighter margins and rely on personal relationships with suppliers and clients, late payments can spell disaster. That’s why this consultation is calling for real change.
What’s Being Proposed?
The consultation explores a legislative package to address four critical areas:
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Late Payments
Tackling situations where invoices are not paid within agreed timeframes. While the standard benchmark is 30 days (if not otherwise stated), many businesses experience far longer waits. -
Long Payment Terms
Challenging the increasing trend of contracts with excessively long payment deadlines—often beyond 60 days—making it difficult for smaller firms to stay afloat. -
Disputed Payments
Addressing the problem of delayed payments due to disagreements over goods or services, and encouraging more transparent dispute resolution processes. -
Unfair Retention Practices
Particularly within the construction sector, where withheld payments—intended as security—can be lost entirely if a contractor or client higher up the supply chain becomes insolvent or defaults.
What’s Next?
Alongside the consultation, the Department has published an Options Assessment to evaluate the likely impact of different policy options. This is your chance to weigh in on what works, what doesn’t, and what changes are truly needed to support smaller enterprises across the UK.
The government is seeking input from business owners, freelancers, trade bodies, and individuals—especially those directly affected by late or withheld payments.
Omagh Businesses: Your Voice Matters
If you run a business in Omagh, whether it’s a high-street retailer, a self-employed tradesperson, or a growing social enterprise, this consultation is your opportunity to help shape the rules that will protect your cash flow and give you fairer terms.
📅 The deadline to submit your views is 11:59pm on Wednesday, 23 October 2025.
For more details and to respond, visit the consultation page on GOV.UK.
