BALI lobbying efforts contribute to small business win as government unveils Late Payment Reforms

The British Association of Landscape Industries (BALI) has welcomed the UK government’s newly unveiled Small Business Plan, which promises the most comprehensive crackdown on late payments in a generation – an issue that has long plagued landscaping businesses and other SMEs across the UK.

The legislative overhaul, described as the toughest in the G7, comes after persistent lobbying efforts from BALI and other industry voices, who have highlighted the damaging impact of delayed payments on landscaping firms’ cashflow, planning, and ability to grow.

Among the key measures announced:

• Stronger enforcement powers for the Small Business Commissioner, including the ability to levy multi-million-pound fines on large firms that consistently pay late.
• Mandatory payment terms capped at 60 days, with an ambition to eventually reduce this to 45 days.
• Audit committees of large companies to be legally required to review supplier payment practices at board level.
• Interest charges to be made mandatory on overdue invoices.
• Spot checks and enforcement of a 30-day invoice verification period to help resolve disputes faster.

These changes will offer greater financial security for the UK’s landscape contractors, many of whom operate on thin margins and rely on timely payment to fund labour, materials, and equipment. Currently, late payments are responsible for the closure of 38 UK businesses every day, a trend BALI has repeatedly warned undermines not only small businesses but the broader built environment supply chain.

Head of Policy and Public Affairs at BALI, Amy Cobbett, commented:

“This is a welcome development for our industry. Late payments have long been a hidden tax on small landscaping businesses, many of whom are sometimes waiting months to be paid for work that has been completed. We’ve pushed for stricter laws and real accountability, and we’re pleased that the government has listened. These reforms will give landscaping businesses the predictability they need to hire, invest, and grow.”

Broader Benefits for SMEs in Landscaping

In addition to late payment reforms, the Small Business Plan includes:

• A £4 billion finance package to support growth, including £1 billion in Start-Up Loans and mentoring, which will be especially beneficial for new entrants to the landscaping profession.
• A £3 billion boost to the British Business Bank, improving access to affordable credit through better loan terms.
• New efforts to cut administrative burdens by 25% and support high street rejuvenation - key issues for BALI members working in urban greening and town centre regeneration.

BALI is committed to ensuring members are well-informed and well-positioned to take advantage of these reforms. We will continue to liaise with the Small Business Commissioner’s office, government departments, and other trade bodies to ensure the landscaping industry’s voice remains central in the implementation phase, including responding to the Late Payments Consultation.