BMW UK Cited for £2.3B Delayed Payments as Late Payment Crisis Escalates
BMW UK has been cited for delaying nearly £2.3 billion in payments, attributing the issue to internal transactions. This comes amidst a wider concern over late payments, with the government estimating an annual cost of £11 billion to the economy and 38 small businesses closing daily due to cash flow crises.
The issue of late payments has been escalating. In the first nine months of 2025, over £100 billion in overdue invoices were logged by UK companies. This is a significant increase from previous years, with 127 firms now taking more than 80 days to pay invoices, up from 85 earlier in the year. Terry Corby, chief executive of Good Business Pays, has described the situation as 'worse than at any point' since 2023.
Late payments are not just a problem for large corporations. They affect an estimated 1.5 million SMEs, holding back investment and job creation. A record number of large firms admitted paying more than half their invoices late in 2025, leaving suppliers waiting an average of over 50 days for payment. However, it's important to note that only 50-60% of firms that should file payment performance reports actually do so, making the full extent of the problem difficult to quantify.
The government is taking steps to address this issue. New procurement rules mandate government contractors to pay suppliers within 45 days. However, with BMW UK's recent citation and the escalating problem of late payments, more action may be needed to protect small businesses and boost the economy.
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