Department for Business and Trade Records Over £28.2 Million in Late Payments

The Department for Business and Trade (DBT) has recorded over £28.2 million in late payments to suppliers over a three-year period, according to new Freedom of Information data. For fintech professionals, this highlights a critical systemic failure within the very government body tasked with fostering UK economic growth and supporting small business innovation.

What was announced

Data obtained via a Freedom of Information (FOI) request and analysed by the Parliament think tank reveals that the Department for Business and Trade failed to pay 1,449 invoices on time between April 2023 and May 2026. The total value of these overdue payments reached £28,174,869.64, a figure that raises serious questions about the department's internal financial operations during a period of significant departmental restructuring.

The analysis breaks down the fiscal years to show a fluctuating but persistent problem. Between April 2023 and March 2024, the DBT recorded 565 late invoices worth approximately £9.64 million. In the following year, April 2024 to March 2025, the number of late invoices actually decreased to 499, yet the total value of those late payments rose to more than £11.41 million. The most recent full year, April 2025 to March 2026, saw 369 late invoices totalling £6.9 million. An additional 16 late payments worth £220,388.39 were recorded in the two months between April and May 2026.

These findings come at a time when the UK government is placing a renewed focus on economic growth at the centre of its strategy. However, the data suggests that the "machinery of government" changes and restructures may have contributed to administrative friction, resulting in millions of pounds being withheld from the private sector beyond agreed terms.

"Small businesses are hit hardest because they rely heavily on cash flow to cover wages, rent and basic running costs. People expect to receive money on time and will have outgoing payments waiting behind it. All it takes is one late payment for things to quickly turn into a string of missed deadlines and financial pressure."

Kenny MacAulay, CEO at Acting Office.

The companies involved

The Department for Business and Trade (DBT) is the central UK government body responsible for promoting British trade across the globe and attracting inward investment. It plays a pivotal role in negotiating trade deals and supporting business innovation, making its own record of late payments particularly sensitive for the UK's commercial reputation.

Acting Office is an accountancy software firm that provides digital tools designed to streamline financial management for businesses. Under the leadership of CEO Kenny MacAulay, the company has focused on addressing the administrative burdens that lead to cash flow volatility. The Parliament Street Think Tank, which conducted the analysis of the FOI data, is a research organisation that focuses on technology, business, and political reform, often highlighting inefficiencies within public sector operations to drive policy change.

What FF News has reported before

FF News has closely followed the expansion of Acting Office as it scales its operations to meet the needs of UK businesses. We recently reported on the company’s leadership growth in Acting Office Appoints Industry Veteran Matt Barnes as CRO to Lead UK Growth Drive. This followed another significant C-suite addition, which we covered in Acting Office Appoints Wendy Rowe as Chief Strategy Officer to Lead AI-Driven Enterprise Expansion. Beyond individual corporate moves, FF News has tracked the broader economic environment for SMEs, including Ebury Analysis: UK SMEs Drive Export Growth Amid Rising Need for FX Risk Management and government-led initiatives such as the OPDA Urges Industry Action on UK Government Smart Data Consultation for Property.

What this means

This is a damaging revelation for a department that exists to champion business interests. When the state becomes a primary offender in the late payment crisis, it undermines the credibility of any government-led "Prompt Payment" initiatives. The fact that the value of late payments rose even as the number of invoices fell suggests a failure in processing larger, perhaps more complex, contracts that SMEs rely on for survival.

Fintech providers in the accountancy and cash-flow forecasting space are under pressure to solve a problem that is being exacerbated by the public sector. Watch for increased demand for automated chasing tools and supply chain finance as businesses seek to insulate themselves from government administrative delays.