Legislation to tackle late payments and introduction of a single patient record introduced in King’s Speech

The Government also promised to drive innovation in AI and medicine as it set out its priorities for the next parliamentary term

4 min read

Prime Minister Keir Starmer and his wife, Victoria, leave Number 10 Downing Street to attend the King’s Speech

Lauren Hurley/No 10 Downing Street

Lucy Miller

13 May 2026

The Government announced legislation to remove unnecessary business regulation and tackle late payments in the King’s Speech (Wednesday 13 May).

The King's Speech also included the continuation of “significant reforms” to the “services British people expect,” including the NHS.

This includes the creation of a single patient record, and support for integrated care boards (ICBs) to become strategic local commissioners.

The King’s Speech set out the priorities for the 2026–2027 parliamentary session.

The proposed legislation was published online, shortly after the speech was made in the House of Commons on Wednesday lunchtime.

Action on late payments to small businesses

The Government introduced its Small Business Protections (Late Payments) Bill as part of the King’s Speech.

Late payments cost the UK economy £11 billion each year and lead to the closure of 38 UK businesses every day, the Government said. On average, small businesses are owed £17,000 each due to late payments.

The bill would impose maximum payment terms of 60 days, enforce mandatory interest for late payments, introduce a time limit for raising invoice disputes before payment is due, and require boards or audit committees of persistently late-paying large companies to publish commentary on poor payment performance.

The small business commissioner will be given new powers to investigate businesses suspected of conducting poor payment practices, adjudicate disputes between businesses outside of the court process, and fine businesses that persistently pay their suppliers late or fail to comply with the legislation.

The Government noted that proposals would give the UK the strongest legal framework on late payments in the G7, supporting its ambition to “make the UK the best place in world to start, run, and grow a business – a place where businesses and the millions of self-employed people are paid on time for the goods and services they deliver.”

The Government has worked with the Federation of Small Businesses (FSB) on the proposed legislation.

Chair of policy and advocacy at the FSB, Tina McKenzie MBE, called late payments “a blight on our economy.”

“The new laws will finally bring a stop to big businesses using their small suppliers as sources of free credit,” McKenzie said.

Creation of a single point of access and greater flexibility for ICBs

The Government will introduce the NHS Modernisation Bill, which will allow for creation of a single patient record and for NHS England to be abolished, in the next parliament.

“These are necessary steps to reduce inefficiency, drive innovation, and support early intervention to help people stay well for longer,” the Government said.

The single patient record will move patients’ health and social care records into one place, allowing patients to see their own health records on the NHS App.

The explanatory notes, accompanying the proposed legislation, acknowledged that the lack of a single patient record has meant frequent communication breakdown between patients and clinicians.

“Information silos across hospitals, GPs and community care force patients to repeat their stories and clinicians to work with incomplete data,” the Government said.

“This is not just an inconvenience: it puts patient safety at risk. When clinicians do not have all the relevant facts available, they cannot make the best decisions, and patients lose out.”

The Government called the single patient record a “long overdue fix to fragmented care.”

The Government also noted that, in the year up to April 2018, there were over 11 million occasions of a patient presenting to a hospital using a different electronic patient record system to their previous attendance.

The NHS Modernisation Bill also details support for ICBs to become strategic commissioners, taking control of commissioning for primary care, including dentistry and pharmacy, and ophthalmology.

Greater flexibility for ICBs to plan at a “neighbourhood and strategic level” is also included in the bill.

The reintegration of NHS England into the DHSC and the restructuring of ICBs is expected to save £1 billion per year by the end of this parliament, the Government said.

Driving innovation in AI and medicine

The Regulating for Growth Bill has a focus on freeing up red tape to allow for increased innovation, particularly the use of artificial intelligence (AI).

One of the areas identified as important in this innovation is the “controlled testing of innovative medicines or medical devices including AI, improving patient access to new lifesaving treatment and technologies.”

The proposed legislation includes “sandbox powers” that would allow businesses to test new products and technologies safely and in real world settings, prove what works, and scale up delivery of changes quickly.

The legislation would also strengthen Growth Duty, compelling regulators to consider growth as part of their decision-making without undermining their core objectives, for example, safety.

The Bill is not about deregulation, but would “strengthen regulatory agility without undermining consumer protections, workers’ rights or regulators’ operational independence,” the Government said.

The King’s Speech can be read in full online.

Lead image: Prime Minister Sir Keir Starmer and his wife, Victoria, leave Number 10 Downing Street to attend the King’s Speech. Photo: Lauren Hurley/No 10 Downing Street