Britain’s biggest companies are getting quicker at paying their bills. New official statistics show the time large businesses take to pay their suppliers has fallen, and the proportion of invoices paid late dropped to 15 per cent in 2025, down from 25 per cent when records began in 2018.

For the small firms that sit at the bottom of long supply chains, the numbers represent rare good news on an issue that has dogged the sector for decades. Late payments cost the economy £11 billion every year and result in thousands of business closures, with the immediate impact falling on owners’ ability to pay staff, cover costs and invest in growth.

The figures, published by the Government this week, draw on data reported under the Reporting on Payment Practices and Performance Regulations 2017, which require large UK businesses to disclose their payment practices, policies and performance twice a year. The information is publicly available, meaning any small supplier can check a prospective customer’s payment record before signing a contract.

The picture is not uniform. London has consistently recorded the shortest payment times and among the lowest proportions of invoices paid late of any region or nation. Manufacturing, by contrast, has consistently reported the longest payment times and the highest proportions of late invoices of any sector, a sore point for the thousands of SMEs supplying parts and services into industrial supply chains.

The improvement comes as the Government’s Commercial Payments (Late Payments) Bill makes its way through Parliament, promising the toughest payment regime in the G7 and the most significant reforms to payment practices in more than 25 years. Business Secretary Peter Kyle has already vowed the legislation will not be watered down in the face of corporate lobbying.

Emma Jones, the Small Business Commissioner, who marked her first year in the role last month, said the figures showed businesses deserved credit for changing their behaviour, but that the job was far from finished.

“Small firms tell me, and our research has shown, that they spend too many precious hours chasing debt. This is limiting capacity to focus on growth, and we want to change that. These figures show that businesses have made a conscious effort to change and improve their payment practices and that should be recognised and celebrated. But the data also shows the need for improvement in key sectors for our economy. I therefore welcome the Commercial Payment Bill and the measures it will take to improve payment performance across the country.”

Her office also manages the Government’s Fair Payment Code, a tiered awards scheme designed to drive best practice and improve payment performance. Signatories include HSBC, Barclays, NatWest and Lloyds, alongside Heathrow Airport, AstraZeneca, Aviva, AXA, BT and Welsh Water.

The direction of travel is encouraging, though few business owners will be breaking out the bunting just yet. Even at 15 per cent, roughly one in every seven invoices sent to a large customer is still settled late, and UK firms logged record levels of overdue invoices last year, leaving SMEs more than £100 billion out of pocket. The test of the new regime, when it arrives, will be whether that stubborn final seventh can be shifted too.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

London’s business community has given the Chancellor’s Mansion House speech a warm reception on paper and a stark warning in the small print: almost half of the capital’s firms believe the Government’s current approach will make economic growth worse, not better.

Rachel Reeves used her third Mansion House address on Tuesday evening to unveil a package aimed squarely at smaller firms, including a new UK Export Finance guarantee scheme to help small businesses start exporting and an expansion of the British Business Bank’s Growth Guarantee Scheme, more than doubling the SME lending it supports to £3.5 billion a year and increasing the number of businesses helped from 8,000 to 20,000. Lloyds, NatWest and Allica Bank have each committed £1 billion of SME lending over the next three years on the back of the changes.

For the London Chamber of Commerce and Industry, that is the right medicine. Whether it arrives in time, and survives a change of government, is another matter.

Karim Fatehi OBE, the LCCI’s chief executive, said the Chamber “welcomes measures to improve access to finance for businesses, encourage innovation and strengthen the UK’s position as a global financial centre – positive steps which recognise the vital role London’s business community and economy plays in driving growth in every postcode.”

But the underlying mood among members is far from buoyant. According to the LCCI’s latest survey data, 49 per cent of London businesses believe the Government’s current approach to the economy will worsen UK economic growth.

“The Chancellor was right to emphasise the importance of economic stability,” Fatehi said. “As the country prepares for a new government, maintaining business confidence is critical. The next government must provide early certainty businesses need to plan for the future.”

The focus on SME finance will resonate well beyond the capital. Many smaller firms have ambitious plans to invest and export but, as Fatehi put it, “continue to face significant barriers to securing finance”, a problem compounded by pandemic-era borrowing that has left the average small business debt load at double pre-Covid levels, hampering access to new finance.

The Chamber’s sharpest message, though, was reserved for whoever occupies Downing Street next. “The next government must avoid further increases to the cost of doing business,” Fatehi said, “giving firms the confidence that they will not face additional tax or regulatory burdens, and delivering meaningful business rates reform rather than further delay. Sustainable growth cannot be achieved if rising costs continue to undermine businesses’ ability to operate.”

That call lands on well-trodden ground. Reeves has long acknowledged the case for overhauling a system she admits leaves the economy feeling “stuck”, promising to remove the cliff edges in business rates that penalise small firms taking on a second site. Business groups argue delivery has yet to match the rhetoric.

On Europe, the LCCI backed the Chancellor’s push for deeper ties with the EU, with Fatehi arguing that “London’s internationally connected economy needs a pragmatic new relationship that reduces barriers to trade, improves labour mobility and makes it easier for businesses to operate across borders.” That echoes mounting evidence that post-Brexit trade friction is worsening for exporters, with smaller firms bearing the brunt.

Fatehi’s parting shot was aimed at day one of the next administration. “The priority for the next government must be turning ambition into action, using the policy levers at its disposal to get London growing,” he said. “A thriving capital is fundamental to the success of the UK economy, generating investment, jobs and prosperity across the country. It is essential the new government recognises this from day one.”

For SME owners, the takeaway is twofold. Cheaper, more available credit and export support are on the way. But with a new occupant of No 10 imminent, the price of that support, in tax, rates and regulation, remains anyone’s guess.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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The billionaire Irish brothers behind Stripe have teamed up with American private equity firm Advent International in a $53 billion-plus bid for PayPal, a deal that would put two of the payment platforms most relied upon by UK small businesses under the same roof.

Stripe and Advent have offered $60.50 a share for the New York-listed company, a premium of around 28 per cent to PayPal’s closing price on Tuesday, according to Reuters, which first reported the approach. The plan is for the pair to co-own the business rather than break it up.

PayPal had not responded to the bid at the time of writing. Advent declined to comment, while Stripe and PayPal did not immediately respond to requests for comment. PayPal shares jumped 16 per cent in premarket trading on news of the approach, and the offer is reported to be backed by around $50 billion in committed financing from banks.

For the hundreds of thousands of British firms that take payments through one or both platforms, this is more than Wall Street theatre. Stripe powers the checkout for much of the online economy, while PayPal remains a fixture at the tills of small e-commerce businesses, sole traders and side hustles across the UK. A combination would concentrate an enormous share of SME payment flows, and the fees that go with them, in far fewer hands.

Many small firms still find themselves weighing PayPal against Stripe and Square when choosing how to get paid online. Whether a tie-up would mean sharper pricing or less pressure to compete on fees is the question business owners will want answered long before any deal completes.

Stripe was founded in 2010 by Patrick and John Collison after the siblings moved to the US, and swiftly established itself as the most important payment system for the internet economy by making it far easier for businesses to transact online. The company, which has dual headquarters in San Francisco and Dublin, is now valued at $159 billion, making it the world’s most valuable privately owned fintech. Patrick, 37, is chief executive, while John, 35, serves as president.

PayPal’s story stretches back further. Set up in 1998 as Confinity by Peter Thiel and two others, it merged two years later with rival X.com, co-founded by Elon Musk, now the world’s richest person. An early pioneer of digital payments, its success made fortunes for both men.

But the business has come under sustained pressure from newer entrants, ranging from Apple and Google to buy-now-pay-later players such as Sweden’s Klarna, which has slashed jobs as AI reshapes its business.

The approach also lands amid a broader wave of consolidation in payments. In December, GoCardless agreed a £920 million sale to Dutch rival Mollie, creating a combined group serving more than 350,000 businesses across Europe.

If Stripe and Advent succeed, the disruptor that made its name unseating PayPal would end up owning it. For UK business owners, the sensible move now is to watch the fee schedules, not the share price.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Shares of Johnson & Johnson fell 1.24% on Wednesday, trading at $250.70 as of 12:17 p.m. EDT, down $3.15 on the day, even after the healthcare giant reported second-quarter results that beat Wall Street expectations and raised its full-year guidance, underscoring how already-elevated investor expectations can outpace even strong quarterly performance.

Johnson & Johnson posted adjusted earnings per share of $2.90 for the quarter, ahead of the Wall Street consensus estimate of $2.85 and up 4.7% from the same period a year earlier. Revenue rose 6.6% year over year to $25.31 billion, surpassing analysts’ average estimate of approximately $25.05 billion, according to data from LSEG.

Strong Growth in Key Pharmaceutical Franchises

The company’s better-than-expected results were driven primarily by strong performance from its immunology drug Tremfya and cancer treatment Darzalex, both of which more than offset erosion from older products facing patent competition, along with a decline in sales from the heart pump business Johnson & Johnson acquired through its 2022 purchase of Abiomed.

Regional sales data showed particularly strong performance in the U.S. market, where sales reached $14.53 billion, up 7.3% from $13.54 billion a year earlier. International sales grew 5.7% on a reported basis to $10.78 billion, reflecting continued global demand across the company’s product portfolio.

A Historic Revenue Milestone Within Reach

Johnson & Johnson Chairman and Chief Executive Officer Joaquin Duato emphasized the significance of the quarter’s results in the context of the company’s broader trajectory toward a major revenue milestone.

“Johnson & Johnson delivered strong second-quarter results, demonstrating the power of our innovation, the depth of our portfolio and the momentum in our pipeline as we advance transformative treatments that address the world’s toughest health challenges,” Duato said. “With raised guidance and quarterly sales surpassing $25 billion, we are on track to meet our 2026 target of more than $100 billion in annual revenue for the first time in our Company’s 140-year history.”

Guidance Raised for the Full Year

Following the strong quarterly performance, Johnson & Johnson raised its full-year 2026 outlook. The company now expects annual sales of approximately $101.1 billion at the midpoint of its guidance range, up from a previous forecast of $100.8 billion. Johnson & Johnson also raised its adjusted earnings per share forecast for the full year to $11.68 at the midpoint of its updated guidance.

Net Earnings Show a More Mixed Picture

Despite the strong adjusted results, Johnson & Johnson’s reported net earnings told a somewhat more complex story. The company posted net earnings of $5.53 billion, or $2.27 per diluted share, essentially flat compared with $5.54 billion, or $2.29 per share, during the same period a year earlier. Adjusted net earnings, which exclude certain one-time items, increased 5.7% to $7.08 billion for the quarter.

Why the Stock Fell Despite the Beat

Johnson & Johnson’s stock decline despite beating both earnings and revenue estimates reflects a pattern common among stocks that have already priced in significant optimism ahead of earnings. Shares had climbed approximately 25.6% year-to-date heading into Wednesday’s report, outperforming broader healthcare sector benchmarks and reflecting strong investor confidence in the company’s pipeline and defensive positioning within a volatile broader market.

With options market participants having priced in an expected post-earnings move of roughly 3.65% in either direction, and the stock already trading at a forward earnings multiple of 21.17 times, exceeding both the broader sector average of 18.49 times and its own five-year historical average of 15.65 times, some investors appear to have used the largely in-line results as an opportunity to lock in gains following the stock’s strong run this year.

Analysts Had Grown Increasingly Bullish

Ahead of Wednesday’s report, several Wall Street analysts had raised their price targets on Johnson & Johnson, citing confidence in the company’s growth trajectory. RBC Capital analyst Shagun Singh Chadha raised her price target to $287 from $265 while maintaining an Outperform rating, pointing to consistent procedural volumes and robust demand across the company’s various business segments.

TD Cowen analyst Michael Nedelcovych moved even more aggressively, raising his price target to $300 from $250 alongside a Buy recommendation. Bank of America analyst Jason Gerberry also raised his price target, to $263 from $254, emphasizing what he described as sustainable growth catalysts within the company’s premium pharmaceutical franchises.

A Moderate Buy Consensus, With Some Caution

According to TipRanks data, the overall analyst consensus on Johnson & Johnson stands at a Moderate Buy, based on 11 Buy ratings and four Hold ratings, with an average price target of $273.21. That target implies meaningful additional upside from current trading levels, even after accounting for Wednesday’s pullback.

Not all analyst sentiment has been uniformly positive, however. Stifel analyst Rick Wise has maintained a Hold rating on the stock, even while raising his price target from $220 to $250 earlier this year, reflecting a more cautious overall stance despite acknowledging improving fundamentals.

Ongoing Challenges Remain

Despite the strong quarterly results, Johnson & Johnson continues to navigate several ongoing challenges. The company remains engaged in managing substantial legal liabilities tied to longstanding talc litigation, while upcoming patent cliffs for products including Opsumit and Simponi represent additional headwinds that could affect the company’s growth trajectory in future periods. Additionally, the company’s Stelara franchise continues facing pressure from biosimilar competition, a dynamic that has weighed on that specific product line even as other areas of the portfolio have shown strong growth.

What Comes Next

With Johnson & Johnson now firmly on track toward surpassing $100 billion in annual revenue for the first time in the company’s 140-year history, investors will be watching closely in the coming quarters to see whether the company’s raised guidance translates into sustained stock performance, or whether Wednesday’s muted reaction signals that the market has already priced in much of the near-term optimism surrounding the company’s pharmaceutical pipeline and broader growth trajectory heading into the second half of 2026.

Powers to nationalise the steel industry have been passed, clearing the way for British Steel to be brought under public ownership.

The House of Commons approved on Tuesday a number of amendments to the Steel Industry (Nationalisation) Bill made in the House of Lords.

It then received royal assent and is now law, Commons deputy speaker Judith Cummins told MPs on Wednesday.

Energy minister Chris McDonald said the government was “acting decisively and with a purpose in the national interest”.

He rejected criticism from shadow business secretary Andrew Griffith, who argued “nationalisation is a bad idea” and that the “real issue” for steel is Energy Secretary Ed Miliband’s “addiction to ruinously high energy prices”.

A spokesperson for the Department for Business and Trade said: The Steel Act gives us powers to nationalise steel companies where it’s necessary in the public interest, to protect a foundation industry that supports our critical national infrastructure, economy and defence.

“We’ve been clear that we’re strongly minded to use these powers in relation to British Steel.”

North Lincolnshire Council leader councillor Rob Waltham said it was “significantly important” for Scunthorpe and the surrounding area but said more still needed to be done to secure its long-term future.

“It’s really welcome news because it gives a certain future for steel-making in Scunthorpe,” he said.

“It’s a significant part of our local economy and British Steel is critically important to our nation’s infrastructure.

“You don’t build much without steel, you don’t deliver much without steel and, certainly, you don’t defend yourself without steel.

“Nationalisation is about securing the future of the steel industry as we see it now but the government will never have enough money to invest in what we will need to make sure we’ve got a sustainable steel industry going forward.”

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The humble lamp post is about to start paying its way. West Northamptonshire is to host one of the UK’s largest local on-street electric vehicle charging programmes, with more than 3,000 sockets, most of them fitted to existing lamp columns, due to start appearing on residential streets from mid 2026.

West Northamptonshire Council has appointed operator Char.gy to lead the rollout following a competitive procurement process. The programme is funded through the Government’s Local Electric Vehicle Infrastructure (LEVI) Fund and backed by substantial private investment, with competitive user tariffs promised.

The target market is clear: residents who rely on on-street parking and have no way of charging at home. That group includes a sizeable slice of the small business community, from sole traders running a van off the kerb to employees weighing up whether an electric company car is practical without a driveway.

For SME owners, charging access is often the deciding factor in whether electrifying a vehicle, or a whole fleet, stacks up. The rollout also lands amid a wider policy shift towards kerbside infrastructure, after ministers redirected £400 million towards on-street chargers in underserved areas, and as workplace charging becomes a benefit employees increasingly expect.

Aviation, Maritime and Decarbonisation Minister Keir Mather said: “Drivers in West Northamptonshire will soon have thousands more reasons to go electric, with over 3,000 new public charge points rolling out thanks to £2.85m of government funding.

“We know charging availability is one of the biggest barriers to switching, which is why we’re tackling it head on with over £600 million to rapidly expand the UK’s charging network so drivers can charge at home or on the go with confidence, wherever they are.”

The lamp column approach is the quietly clever part. By bolting chargers to existing council and parish infrastructure, the programme avoids the cost and disruption of digging up pavements, an approach the council says will keep the rollout cost-effective while supporting the area’s long-term sustainability ambitions.

Locations were selected through an evidence-based process prioritising residents without off-street parking, alongside sites suggested by residents themselves. Parish councils are being consulted to ensure the network is fair, accessible and sustainable.

Cllr Nigel Stansfield, Cabinet Member for Environment, Recycling and Waste at WNC, said: “This is a transformative investment in our area’s future. By delivering thousands of accessible, convenient and fairly priced on-street charging points, we are making it easier for residents to choose cleaner travel and invest in electric vehicles if they choose to.

“Working with Char.gy allows us to scale up quickly using existing infrastructure and ensure our communities are well-prepared for the increasing demand for electric vehicles.”

John Lewis, Char.gy’s chief executive, said the scheme would “make a real difference to people across West Northamptonshire who don’t have driveways or home chargers. By using lamp columns on residential streets, the Council is bringing charging closer to where people live, without major disruption to neighbourhoods.”

One caveat for those doing the sums: public charging still attracts 20 per cent VAT against 5 per cent for home charging, a gap currently the subject of a legal battle between HMRC and charge point operators that could yet reshape the economics of kerbside charging.

Residents and local businesses will be kept updated on installation timelines and site locations through WNC’s dedicated webpages and Char.gy’s website.

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk