The Budget is on 28 October, the late payment bill reaches its last stage in the Lords, and late-payment interest stays at 11.75% a year until the end of December.
This is an earlier briefing, kept as it was published. Some of it may be out of date: see the latest.
The Chancellor has set the Budget for 28 October 2026. Budgets are where changes to tax reliefs are usually announced.
For raising money, the things to watch are the limits of the SEIS and EIS schemes for investors, the rules for R&D tax relief, and the plan for e-invoicing. The Government has said it will publish that plan at the Budget.
The Commercial Payments Bill has finished its report stage in the House of Lords. Its third reading there is listed for 20 October 2026, and Parliament says future dates may change. After that it goes to the House of Commons. It is not law yet.
When the bill was introduced, the Government said it would cap payment terms for large firms at 60 days and make late-payment interest mandatory. Until it passes, the current rules on interest and compensation apply.
Routes: Statutory late-payment interest and compensation, Supplier trade credit (negotiated payment terms), Invoice factoring
Calculator: Late-payment interest and compensation
Interest on a late business payment is 8% a year plus the Bank of England base rate on 30 June or 31 December. The base rate on 30 June 2026 was 3.75%, so a debt that became late between 1 July and 31 December 2026 runs at 11.75% a year.
The next reference date is 31 December 2026. The Bank's next two rate decisions are on 5 November and 17 December.
Routes: Statutory late-payment interest and compensation
Calculator: Late-payment interest and compensation
In September the FCA published a review of business lending of £25,000 or less to sole traders and small partnerships, which its consumer credit rules cover. It found no evidence that its regulation is a major barrier to small businesses getting finance.
The Treasury is reforming the Consumer Credit Act, and the FCA will consult on new rules after that. Lending to limited companies, and business loans above £25,000, are outside the FCA's remit.
The Government has decided to improve bank referrals for turned-down businesses through action by the industry, not new laws for now. It has asked the industry for a single set of proposals by 18 December 2026. The Bank Referral Scheme's rules stay as they are.
As of 10 October 2026. Dates set by others can move.
Commercial Payments Bill: third reading in the Lords (listed; may change) (source)
Bank of England rate decision (source)
Bank of England rate decision (source)
Bank Referral Scheme: industry proposals due (source)
The base rate on this day sets late-payment interest for debts late from 1 January 2027 (source)