The UK government is set to introduce new legislation aimed at tackling late payments from large firms to small businesses, which cost SMEs an average of £22,000 annually and contribute to 50,000 closures each year. The proposed measures include mandatory payment reporting in annual reports for large companies, enhancing transparency and accountability regarding their payment practices. Enforcement will be strengthened, with responsible directors facing potential criminal prosecution and fines for non-compliance. Prime Minister Sir Keir Starmer emphasized that addressing late payments is a critical part of supporting small business growth, while Business Secretary Jonathan Reynolds labeled the current situation as 'simply unacceptable'. A consultation on further policy measures will be launched in the coming months, aiming to create a fairer payment environment. The government hopes these actions will unlock cash flow and foster economic growth.