UK businesses more upbeat as late payments ease – Pre budget comment
John Payne, senior economist at Dun & Bradstreet, comments ahead of the UK Autumn Budget. “Our data suggests businesses are heading into this year’s Budget in a more upbeat frame of mind than a year ago. Late payments have been one of the key issues weighing on business confidence, but our figures show the share of payments running more than 30 days late fell to 12.4% over the 12 months to September, down from 14.7% a year earlier. That easing in payment pressures should give businesses a little more breathing room on cashflow, supporting confidence and their ability to invest, hire and grow. It is an encouraging sign of resilience across the UK business sector ahead of the Budget.
“However, the improving headline picture masks significant differences in payment behaviour. Larger firms continue to pay their suppliers much more slowly than smaller businesses, with almost 19% of payments from larger firms running more than 30 days late, compared with under 12% for SMEs. Persistent delays can steadily erode cash flow and working capital, leaving firms more vulnerable to financial stress. That matters at a time when, despite being lower than a year ago, UK company failures are still almost 30% above pre-pandemic levels.
“With the Budget likely to create both new opportunities and risks for UK businesses, now is a good time for firms to reassess who they trade with, how quickly customers are actually paying and where their credit exposure is concentrated. With financial pressures still uneven and an uncertain global outlook adding to the risks facing the UK economy, changes in payment behaviour can provide an important early signal of emerging financial stress, giving businesses more time to protect cash flow and strengthen their resilience.”
All data in this commentary is from the Dun & Bradstreet UK Active Universe Trade Payment Report (12 months to September 2026) and the D&B UK Failures By Industry, Q3 2026 Update (12 October 2026)