£62m of late payments hit HM Treasury despite largest crackdown in over 25 years
HM Treasury, the UK’s economics and finance ministry, has recorded more than £62m in invoices paid late over the past three years, despite the announcement of the landmark reform to crackdown on late payments earlier this year in May.
The data obtained via a Freedom of Information request and analysed by the Parliament think tank revealed over the period of April 2023 and May 2026, the HM Treasury recorded 1264 invoices worth £62,726,618.68 paid late.
In 2023, the largest volume of invoices was failed to be paid on time, totalling £27,807,777.64. This was followed by 350 invoices worth £14,852,139.18 in 2024 and 417 invoices totalling £20,066,701.86 in 2025.
HM Treasury oversees how government departments spend public money and sets the direction for the UK economy with its performance is seen as a benchmark for financial discipline across the public sector.
In May 2026, the UK government launched the Small Business Protections Bill introduced to Parliament to back small businesses with the toughest late payment regime in the G7. The new legislation aimed to provide stronger powers for the small business commissioner to investigate disputes and give fines to persistent late payers with the potential of tens of millions worth of penalties.
Late payments cost UK businesses £11bn every year, with 38 businesses being forced to close every single day as a result of poor cashflow.
Responding to the data, Kenny MacAulay, CEO of accountancy software firm Acting Office said: “Late payments send a damage wave through the entire economy if organisations aren’t paid on time, particularly when it’s to the tune of tens of millions of pounds. While larger organisations can absorb the hit, for smaller businesses who operate on tight margins, it can only take one late payment to be make or break.”
“At a time where the UK economy is forecast sluggish growth, the government must lead by example when it comes to on-time payments, supporting cash flow across its supplier network and, in turn, facilitating a healthier and more stable economic environment.”
The Treasury’s late payment record follows the HMRC confirming significant compliance challenges with an estimated one million people failing to file their tax return, sparking concern across the UK’s financial sector.
In April 2026, the UK government launched Making Tax Digital, a new digital transformation programme to tax filings to make it easier for individuals and businesses to get their tax right. However, in the first filing on the 7th August, 428,000 self-employed, sole traders and landlords missed the first quarterly deadline.