A year into the job, Britain’s Small Business Commissioner is about to be handed real teeth, and she intends to use them.
Emma Jones CBE has marked her first anniversary as the UK’s Small Business Commissioner, capping twelve months of hard campaigning on behalf of the country’s 5.5 million small firms with the prospect of the most far-reaching shake-up of payment law in a generation. Since taking up the role, the Enterprise Nation founder has trained her attention on speeding up payment times, putting digital tools to work for small traders, and protecting the cash flow that keeps the nation’s smallest businesses alive.
The timing is no accident. Her milestone arrives just as the government’s Commercial Payments Bill, also referred to as the Small Business Protections Bill, completes its passage into Parliament. The legislation is designed to give Britain the toughest late payment regime in the G7 and, crucially, to convert the Office of the Small Business Commissioner (OSBC) from a mediation service into a genuine enforcement body with the power to investigate and to fine.
For anyone who has run a small business, the problem it targets needs little explanation. Late payment drains an estimated £11 billion from the economy every year, and the human cost behind that figure is what Jones returns to again and again.
“Having started, scaled, and sold businesses myself, I know first-hand how draining it is to chase the money you have already rightfully earned,” she said, reflecting on her first year. “This year, our small but mighty team has focused heavily on reducing the hours business owners waste on non-productive tasks so they can reinvest that energy back into growth.”
She is blunt about the scale of the drag. “Late payment isn’t just an administrative inconvenience, it is a massive barrier to excelling,” she said. Joint research from the Department for Business and Trade and the OSBC, she noted, shows UK small businesses lose a staggering 133 million hours of staff time every year purely chasing overdue invoices, an average of 86 hours for every affected firm. “This is time stolen directly from product development, training, and expanding operations. As we look to the year ahead, the new legislation represents a monumental shift. It gives us the teeth we need to end this culture of delay and unlock the full potential of our small business community.”
Jones has spent her opening year reshaping how the OSBC reaches and supports small firms. Acting as an independent advocate for micro-businesses and SMEs squeezed by large corporate supply chains, her office has clawed back £1.5 million for small businesses caught out by late payment, building on the Commissioner’s wider track record of recovering money owed to suppliers.
On the digital front, she has published fresh guidance alongside a payment pledge signed by major UK eCommerce marketplaces including eBay, Temu, PayPal and SumUp, and produced AI advice tailored to small firms. Behind the scenes, she has worked closely with the Department for Business and Trade and research partners to lay the groundwork for the incoming Bill, drawing on international best practice to shape it.
Cultural change has been a constant theme. More than 600 businesses across the UK have now signed up to the Fair Payment Code, among them HSBC, Barclays, NatWest, Nationwide, Heathrow Airport, Amey, Kier, AXA, Boeing, BT and Welsh Water. Jones has also grown the office’s social media reach and launched an interview series, ‘Get the money moving’, with leading voices in the fair payment space. In person, she has met more than 5,000 people and run monthly SME Safaris, sending civil servants out to meet founders in their real trading environments.
The year ahead will be defined by readying the business community for the Commercial Payments (Late Payments) Bill now making its way through Parliament. The government has billed the package as the toughest crackdown on late payments in over 25 years, and the detail bears that out.
Under the reforms, the Commissioner will gain powers to investigate the persistent poor payment practices of larger businesses, adjudicate disputes outside the court system, and levy financial penalties on repeat offenders that could run into tens of millions of pounds. The OSBC will also be able to act on anonymous complaints, shielding small suppliers from the threat of corporate retaliation when they speak up.
Two further measures go to the heart of the cash flow problem. Large companies will be capped at a maximum of 60 days’ payment terms when dealing with smaller suppliers, and statutory interest of 8% above the Bank of England base rate will apply automatically to overdue invoices, stripping away a firm’s ability to contract out of late fees. The new powers for the Commissioner were confirmed when the Bill was introduced to Parliament, alongside the wider crackdown on firms that pay late.
Before the legislation takes effect, Jones is focused on keeping the quality of casework and support high, welcoming more firms onto the Fair Payment Code, and exploring a future in which the office covers some of its own costs while positioning the UK as a global leader in the shift to a prompt payment economy.
After a year of persuasion, in other words, the Commissioner is preparing for a year of enforcement. For the 5.5 million small businesses she represents, the difference could be measured in both hours and pounds.