Late payments and SMEs

That this House recognises how poor payment practices impact on small to medium sized businesses; notes that late payments of invoices beyond 30 days can make or break an SME in terms of the knock on effect on payment of staff, paying suppliers, operating costs and servicing debt, not to mention detriment to mental health and, in the worst cases, going out of business as a result; further recognises that SMEs are already struggling in a hugely difficult economic environment due to the cost of living and energy crisis, recovery from the pandemic and Brexit; further notes that research has shown that late payment of invoices has worsened since the pandemic; believes that the Government's Prompt Payment Code does not go far enough; and further believes that in order to provide stability and security for SMEs, the very backbone of our economy in the UK, these businesses need effective payment structures to nourish an ethical and more transparent business environment and consequently allow more small firms to survive and grow.