§ Mr. SayeedTo ask the Secretary of State for Trade and Industry what plans the Government have to introduce legislation on late payment of accounts by companies. [124749]
§ Ms HewittThe Late Payment of Commercial Debts (Interest) Act 1998 was introduced on 1 November 1998 and provides businesses with a statutory right to claim interest on late payment of commercial debt. The legislation is phased and for the first two years—1 November 1998 to 31 October 2000—small businesses can claim interest from large businesses and the public sector.
The Government propose to extend the right to claim interest from 1 November 2000 to 31 October 2002, so that small businesses will also be able to claim interest from other small businesses on debts incurred under contracts agreed after that date. From 1 November 2002 it is proposed that all businesses and the public sector will be able to claim interest from all businesses and the public sector on debts incurred under contracts agreed after that date.