In an effort to boost the economy, the Government has announced new measures to tackle late payment to small and medium sized enterprises ("SMEs").
As part of the Prompt Payment & Cash Flow Review, the Government will be introducing new regulations that will include new metrics for reporting and extend payment performance reporting obligations.
This will include reporting on the value of invoices, the value of disputed invoices and retention payments for businesses in the construction sector.
The aim of the measures is to foster "a stronger payment culture and providing businesses with more predictable and reliable cash flow".
The Government has not yet confirmed what those reporting obligations will involve, but it has published a consultation asking for views on whether contractors should share data on how much retention monies they hold, and whether they should report on their standard retention terms.
