The Small Business Protections Bill – what the proposed changes could mean for construction

Late payment has long been a major issue across the construction industry – particularly for small and medium-sized businesses and subcontractors – often creating significant pressure on cash flow and overall financial stability.

That is why the government’s proposed Small Business Protections Bill is attracting significant attention across the sector. The Bill, which entered Parliament today (19^th May), is being described as the biggest crackdown on late payments in more than 25 years. Keep reading this week’s blog to find out more about what the proposed changes involve and what this means for construction and the wider economy.

Why late payment matters in construction

Construction is heavily reliant on subcontractors and specialist trades, many of which are small or medium-sized businesses operating within complex supply chains.

When payments are delayed at any point in the chain, the impact can quickly spread across multiple organisations. Businesses may struggle to manage wages, materials, supplier costs and day-to-day operations, even when projects themselves are progressing successfully. In some cases, businesses may be carrying out work correctly and on time, only to wait months before receiving payment.

In a sector already facing wider challenges around costs, labour availability and market uncertainty, improving payment practices is increasingly seen as an important part of creating a healthier and more sustainable industry.

What is the Small Business Protections Bill?

The proposed legislation, introduced to Parliament on 19^th May, is intended to strengthen protections for small businesses and self-employed people by tackling unfair payment practices.

Key measures include:

A clear 60-day cap on payment terms on all large firms paying smaller suppliers.
Mandatory interest on late payments, set at 8% above the Bank of England base rate.
A ban on the practice of withholding retention payments under construction contracts.

In addition, the Small Business Commissioner will receive significant new powers to investigate poor payment practices, adjudicate disputes and fine the worst offenders.

The overall aim is to create a fairer environment where smaller businesses are not left carrying disproportionate financial risk while waiting for payments to arrive.

Minister for Small Business and Economic Transformation, Blair McDougall said:

“I’ve spoken to too many business owners who do everything right and are still left lying awake at night wondering how they’ll pay their staff or cover their bills because they haven’t been paid what they’re owed.

“Introducing this Bill is about standing up for those people, to restore fairness, dignity and security for small business owners and the self-employed, so they can focus on doing what they do best: growing their businesses and the economy.”

What could this mean for the construction sector?

For construction businesses, stronger payment protections could have several positive implications.

More reliable payment practices can help improve cash flow stability, giving businesses greater confidence when planning workloads, investing in staff and managing supplier relationships.

The proposed changes may also encourage greater transparency and accountability across supply chains, helping reinforce good commercial practices throughout the industry. For many businesses, this is not simply a financial issue – it is about creating greater stability, supporting long-term growth and giving smaller companies more confidence and security.

However, as with any major legislative change, the success of the Bill will ultimately depend on how effectively the measures are implemented and enforced in practice.

Final thoughts

Late payment remains one of the most significant challenges facing many small businesses across construction and beyond. The proposed Small Business Protections Bill represents an attempt to address some of these long-standing issues and improve confidence across supply chains.

While the long-term impact of the legislation will depend on how it is delivered in practice, the focus on fairer payment practices is likely to be welcomed by many businesses across the sector.

What are your thoughts on the proposed changes and the issue of late payments in construction? We would love to hear your views – join the conversation with us on our Facebook or LinkedIn pages.

19.05.2026

Feature image: Magnific

Taking action for Mental Health Awareness Week

With 1 in 4 people experiencing a mental health problem every year and 1 in 6 working-age adults experiencing symptoms associated with mental ill health, increasing awareness of this issue and taking action to address it couldn’t be more important.

That’s why this year’s Mental Health Awareness Week is themed ‘Take Action – for yourself, for others and for all of us’. Keep reading this week’s blog to find out more about the campaign and what we’re doing at Sheriff this week and beyond.

Three construction workers on site, talking to each other face-to-face, representing effective communication

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5 May 2026

Deaf Awareness Week – creating more inclusive workplaces in construction

Deaf Awareness Week (4 – 10 May) is an important opportunity to recognise the experiences of people who are deaf or have hearing loss, and to reflect on how we can create more inclusive environments in everyday life and at work.

Last year, we marked this week by sharing a blog on communication challenges in construction and how simple changes can make a big difference. That piece led to something far more meaningful than we could have anticipated – it connected us with a local college and Rehan, a student looking for an opportunity in the industry. Read on to learn more about Deaf Awareness Week, Rehan’s story and how we can all communicate more effectively.

Construction worker on site, crouched down, pointing at a worn plank of wood over a hole in the ground, holding a clipboard. Representing a near miss being identified on site.

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28 April 2026

Near misses in construction – why reporting them matters more than you think

In construction, not every safety incident results in injury or damage. Sometimes, something goes wrong – but no one gets hurt. It is easy to see these moments as ‘lucky escapes’ and move on.

However, these incidents, known as near misses, are often the most important warnings a site will ever get. Whether it is a tool falling from height but missing someone or a vehicle reversing too close to a pedestrian, near misses highlight where things are starting to go wrong. Left unaddressed, the next time may not end so well. Keep reading this week’s blog to understand what near misses are and why recording them is essential for improving safety.

Small group of people looking over a 3D model of a town plan on a table

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7 April 2026

From housing targets to real communities – what the new towns programme could mean for our region

The government has recently set out proposals to support the development of a new generation of towns across England, marking one of the most ambitious approaches to housebuilding in decades.

While the headlines focus on housing numbers, the wider ambition is clear. These developments are intended to go beyond simply delivering homes, instead creating well-planned communities that benefit from the infrastructure, services and amenities needed to support long-term growth. Keep reading this week’s blog to understand what the new towns programme involves and what it could mean in practice.

Two model houses on a work surface with one showing an energy efficiency rating card. Both models are reflected in the shiny surface. An office environment is blurred in the background.

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31 March 2026

The Future Homes Standard explained – what’s changing for new build housing

The Future Homes Standard has been widely discussed across the construction and housing sectors in recent months, as government sets out plans to improve the energy performance of new homes.

While much of the focus has been on timelines and policy changes, the core message is clear. The way new homes are designed and built is evolving, with a stronger focus on energy efficiency, lower carbon emissions and long-term affordability for homeowners.

Take a look at this week’s blog to understand what the Future Homes Standard involves and what it could mean for the future of housebuilding.

Image of a man on a construction site, sitting down with his head in his hands, looking stressed.

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23 March 2026

Managing work-related stress: understanding the pressures and how to respond

Whether you are working on site or in an office-based role, the demands of the construction industry are constant. Deadlines are tight, programmes need to be met, quality standards must be maintained and safety is always a priority. With so many moving parts, the stakes are high – and that can create significant stress if not managed effectively.

Understanding the key pressure points is the first step in addressing work-related stress, particularly in fast-paced environments like construction. Keep reading to explore what these are and what they mean in practice.

Image of a man standing in a park holding a giant clock. The man is on the right hand side of the image and only his torso and legs are visible. There is a large tree in the background to the left side of the image.

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17 March 2026

Managing your time: seven practical tips for busy construction professionals

From managing complex programmes and coordinating subcontractors to handling safety, budgets and client relationships, the day-to-day reality of construction is a constant balancing act. While we cannot create more hours in the day, we can make better use of the time we have.

Effective time management in construction is not just about productivity. It directly impacts a company’s ability to deliver successful projects. Get it right and work runs smoothly. Get it wrong and delays, inefficiencies and avoidable costs quickly follow. Here are seven practical tips to help construction professionals manage their time more effectively.

Selection of construction-related PPE set against a hard wooden floor. Items include a hard hat, boots, ear defenders and gloves.

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11 March 2026

Focus on safety: PPE – your last line of defence

Personal protective equipment, or PPE, remains one of the most visible and recognisable elements of construction site safety. Hard hats, high-visibility clothing, safety glasses and protective footwear are all part of everyday working life on site.

But while PPE may feel routine, it should never be taken for granted. It is often described as the last line of defence – the final protective layer when other control measures cannot fully eliminate safety risks. Used correctly, PPE helps prevent serious injury; using it incorrectly or while damaged can give a false sense of security.

In this week’s Focus on Safety feature, we look at why PPE is so important, when it is required, and how to ensure it is properly fitted, maintained and inspected.