Prompt Payment Code: Sign up or be publicly named, minister warns non-signatories
9 November 2012
The government is stepping up pressure on big businesses to sign up to the Prompt Payment Code, a voluntary agreement to promote good payment practices.
Fri, 9 Nov 2012
The government is stepping up pressure on big businesses to sign up to the Prompt Payment Code, a voluntary agreement to promote good payment practices.
Business minister Michael Fallon has warned all FTSE 100 and FTSE 250 companies companies in a letter that the names of any companies that fail to sign up to the Code will be publicised in the new year. A Department of Business, Innovation & Skills spokesman told recruiter.co.uk that no decision had yet been made on the final location of where non-signatories are likely to be published.
According to the Department for Business, Innovation and Skills, 1,182 companies are signed up to the Prompt Payment Code, which turns four years old next month. However, only 27 FTSE 100 companies and five FTSE 250 companies have signed on, BIS says.
By signing on, companies are committed to pay their suppliers within an agreed time and to make sure there is an appropriate process in place for any issues that may arise.
“There is great demand from SMEs to get big business to sign up to the Code and improvement cash flow through the supply chain,” the spokesman said. “This is an issue of changing the culture of late payment.”
The government is stepping up pressure on big businesses to sign up to the Prompt Payment Code, a voluntary agreement to promote good payment practices.
Business minister Michael Fallon has warned all FTSE 100 and FTSE 250 companies companies in a letter that the names of any companies that fail to sign up to the Code will be publicised in the new year. A Department of Business, Innovation & Skills spokesman told recruiter.co.uk that no decision had yet been made on the final location of where non-signatories are likely to be published.
According to the Department for Business, Innovation and Skills, 1,182 companies are signed up to the Prompt Payment Code, which turns four years old next month. However, only 27 FTSE 100 companies and five FTSE 250 companies have signed on, BIS says.
By signing on, companies are committed to pay their suppliers within an agreed time and to make sure there is an appropriate process in place for any issues that may arise.
“There is great demand from SMEs to get big business to sign up to the Code and improvement cash flow through the supply chain,” the spokesman said. “This is an issue of changing the culture of late payment.”
