Part 1: The Small Business Commissioner
On 26 July 2015, the Government published ‘Establishing a Small Business Commissioner’, a consultation which closed on 21 August 2015. The paper proposed the creation of a Small Business Commissioner to assist small businesses in payment disputes with larger businesses – a problem that is estimated to adversely impact small businesses to the tune of £26.8bn per year. The Commissioner's role is intended to enable small businesses to resolve disputes and avoid future issues by encouraging a culture change in how businesses deal with each other, promoting fair treatment for all.
	The Small Business Commissioner will achieve this by providing:
General advice and information to small businesses, for example, related to dispute resolution and contract principles, including options for resolving disputes;
Directing small businesses to appropriate services, such as relevant sector ombudsmen or regulators, existing independent advice services, or, for business-to-business disputes, to an approved alternative dispute resolution provider;
An in-house complaints handling function, in respect of payment issues between a small business supplier and a larger business.
	The Small Business Commissioner will not provide advice on specific legal issues relating to a particular case, nor information or advice on matters specific to dealing with a public body.
	The legal position in relation to the matters and disputes which the Small Business Commissioner seeks to cover is determined by contract law and, where relevant, legislation such as the Late Payment of Commercial Debts (Interest) Act 1998 (LPCDA). The Act does not alter the substantive legal regime. The LPCDA entitles a supplier to statutory interest and (limited) compensation, where a business fails to pay the supplier within certain periods. If there is no agreed payment date, statutory interest starts to run after a 30-day period. If there is an agreed payment date, interest starts to run after a 60-day period for a contract between two businesses, or (if longer) after the agreed period if this is not grossly unfair.
	The Small Business Commissioner is intended to complement the existing court and alternative dispute resolution landscape. The Act does not alter existing court rules or formal mechanisms for dispute resolution. It establishes a statutory office holder whose role is to encourage and facilitate dispute resolution.
	Part 1 (other than paragraphs 1, 15 and 18 to 21 of Schedule 1) extends to England and Wales, Scotland and Northern Ireland. Paragraphs 1 and 15 of Schedule 1, which are the provisions establishing the Commissioner as a corporation sole and the document execution provisions, do not extend to Scotland.