The Government recently carried out a statutory review of the Reporting on Payment Practices and Performance Regulations 2017 and the Limited Liability Partnerships (Reporting on Payment Practices and Performance) Regulations 2017 (“the Regulations”).
The review concluded that the policy remains appropriate. There is an ongoing need to ensure greater compliance in terms of prompt payment and to increase awareness of the payment performance of large businesses. Having considered alternatives that may impose less regulation, the review concluded that the Regulations were the appropriate mechanism to address the policy objectives.
Following on from this we issued a consultation running from 30 January 2023 to 28 April 2023, including the specific question as to whether the Regulations should be extended beyond their current expiry date of 6 April 2024. As part of this, we consulted on other potential amendments and improvements to the Regulations resulting from the views expressed by those who responded to the recent review. The response to this consultation forms part of the wider payment and cash flow review.