One in four invoices received by large businesses are paid late and there has been no improvement in the average time it takes to pay suppliers, according to analysis of UK government data by the Chartered Institute of Procurement & Supply.

The findings, which come ahead of the findings of a government review into payment practices, reveal only a slight improvement in the number of late payments over the last five years. On average, 31% of payments were late in 2018. By 2022, that figure had dropped to 26% and it remains at that level so far this year. The numbers mean that large UK businesses are regularly missing their own contractual deadlines to pay suppliers.

The figures come from an analysis of the data submitted as part of the government’s reporting on payment practices and performance regulation. Large UK businesses that fall within scope of the legislation are required to submit data on their UK payments twice a year. Despite this being a legal requirement, the number of submissions to the database has fallen every year since 2019, with 15,087 submissions in 2019 but only 12,829 last year.

A government consultation and review of current payment regulations was completed this year and is due to report shortly. One suggestion being considered is whether businesses should have to report on the total value of their late payments, as well as the number of payments. This would reveal the financial impact poor payment practices are having on the UK economy and address concerns that the data is being distorted by businesses paying smaller invoices quickly whilst delaying larger ones.

Nick Welby, CEO at CIPS, said: “The unprecedented disruption businesses and consumers around the world have witnessed in the last four years has taught us that when supply chains break down, the economy and consumers suffer.

“For supply chains to work well, everyone needs to be paid on time and within agreed terms. Failure to do so can result in a domino effect, rippling through the supply chain with each subsequent link at risk. Suppliers should not be expected to bankroll their customers and a culture of ‘buy now, pay at some point’ is not acceptable. Paying suppliers promptly not only strengthens relationships but can lower costs and, crucially, build resilience across supply chains – something that has been severely tested in recent years.”

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