The Crown Jewels were out, the robes were on, and King Charles III stood up to tell us what the government has planned for the next year. It’s all very grand, isn’t it? But for those of us running small businesses or freelancing in London, the pomp and circumstance matters far less than the bottom line. Buried within the 37 Bills outlined in the King’s Speech 2026, there was actually a nugget of gold for the little guy.
The Small Business Protections (Late Payments) Bill
Finally, someone in Westminster has realised that cash flow is the lifeblood of the economy. The new Small Business Protections (Late Payments) Bill is a direct shot across the bow of big corporations who treat paying small suppliers like an optional hobby. We’ve all seen it—massive firms sitting on invoices for 90, 120 days, whilst the freelancer down the road struggles to pay the rent. It’s not just bad manners; it’s economic bullying.
The government announced that the legislation will include giving the Small Business Commissioner, currently entrepreneur Emma Jones, the ability to impose financial penalties on persistent late-paying big businesses. It is about time the Commissioner had some teeth. The Bill also proposes a new adjudication function to settle disputes out of court, saving small business owners the cost and stress of legal action.
Penalties, Interest, and the 60-Day Cap
The specifics are quite telling. There is a proposal to ban the withholding of retention payments under the terms of construction contracts, which will be a relief to many in the trade. Most significantly, we are looking at a 60-day cap on payment terms for large firms when paying smaller suppliers.
"All commercial contracts will need to include statutory interest set at 8% above the Bank of England base rate."
This forces big business to put their money where their mouth is. If they want to drag their feet, they will have to pay for the privilege. Additionally, boards or audit committees of persistently late-paying large companies will be required to publish explanations for their poor performance. Nothing quite like a bit of public shaming to focus the mind, is there?
Regulating for Growth and European Partnerships
Of course, it wasn’t all about chasing debts. The Regulating for Growth Bill aims to make the UK’s regulatory system fit for the future. It promises to elevate consideration of growth in regulatory decision-making without undermining core objectives like safety. We shall see about that. There is also talk of cross-economy ‘sandboxing powers’ so businesses can test new products safely. Then there is the European Partnership Bill, designed to smooth things over with the EU regarding trade and electricity. It is all very sensible, but frankly, I want to see how it plays out in the real world before I pop the champagne.
Don’t Wait for the Law to Save You
Whilst these legislative changes are welcome—and frankly overdue—Parliament moves at a snail’s pace. You cannot afford to wait for a Bill to pass before you protect your cash flow. You need to be proactive right now. This is where technology steps in where legislation drags its feet. You need to ensure your invoices are professional, prompt, and impossible to ignore.
I’ve been looking at tools that streamline this process, and Invoice Gini is particularly sharp. It’s an AI finance assistant designed precisely for this sort of headache. You just say it, and your invoice is ready. It auto-generates professional PDFs and tracks payments intelligently. You focus on the work; let Gini handle the money. The King’s Speech offers a glimmer of hope for fairer payment practices, but hope doesn't pay the bills. Smart invoicing does.
Source: King's Speech 2026: What small business owners need to know