The Department for Business and Trade (DBT), which supports UK economic growth by promoting trade, investment and business innovation, recorded £28.2 million in late payments over the past three years.
The news comes amid major changes to the machinery of government, including departmental restructures and a renewed focus on economic growth at the centre of the government strategy.
The data came from a Freedom of Information (FOI) request and was analysed by the Parliament think tank, which tracked the department’s total number of late invoices and the total amount of those payments between April 2023 and May 2026.
Over this period, the DBT recorded 1,449 late invoices, including 565 invoices between April 2023 and March 2024 worth £9,643,117.20, which then rose to £11,410,939.48 between April 2024 and March 2025, despite the number of invoices falling to 499.
In the most recent year, April 2025 to March 2026, 369 invoices were late, totalling £6,900,424.57, and a further 16 invoices were late between April and May 2026, totalling £220,388.39. Across the three years, these payments totalled £28,174,869.64.
Responding to the data, Kenny MacAulay, CEO of accountancy software firm Acting Office, said: “The UK economy simply can’t function if people don’t get paid on time. Every payment triggers another one, and when money doesn’t arrive, the whole chain starts to break.
“Small businesses are hit hardest because they rely heavily on cash flow to cover wages, rent and basic running costs. People expect to receive money on time and will have outgoing payments waiting behind it. All it takes is one late payment for things to quickly turn into a string of missed deadlines and financial pressure.”
“Late payments limit small businesses capacity to focus on growth as they spend too many precious hours casing debt. It is a basic business courtesy to pay on time, which the government should be leading the way on. Government procurement is an excellent way to build up a small business but it is critical that those working with government are confident they will be paid on time. I am speaking to the Cabinet Office who oversee government payments to look to find a solution which delivers for business.”
Emma Jones, Small Business Commissioner
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