Simon Kirby MP has today welcomed the news that in just four months the number of FTSE 350 firms signing up to the Prompt Payment Code has tripled. There are now 126 FTSE 350 firms signed up to the code, with 94 new firms since November last year. Three quarters of FTSE 100 companies have signed, or are in the process of signing, the Code.
The news has been welcomed by business groups, including the Federation of Small Businesses and the Forum of Private Business.
The Prompt Payment Code is a code of conduct which commits signatories to pay suppliers on time, give clear guidance to suppliers and to encourage good practice. Business Minister Michael Fallon wrote to big businesses in November urging them to sign up to the Prompt Payment Code or be named publicly.
Mr Kirby commented:
“This is great news for small businesses, both in Brighton Kemptown and across the South East more widely. Small business owners constantly tell me how vital prompt payment is – and this committed drive from Conservatives in Government will deliver long-term benefit for businesses up and down the country”.
Michael Fallon, Business Minister, commented:
“Late payment is a real issue for businesses across the country. It is not fair – poor cash flow can prevent small firms growing and even push them into insolvency. We need to improve the payment culture and I welcome the response of big businesses in signing up to the common sense principles in the Prompt Payment Code.
“But the work will not stop here. I will keep up pressure on firms to sign up and continue to ensure government leads by example in paying its suppliers on time. Central government has a good record. Now, I will be challenging other parts of the public sector to show their commitment to the principles of the Code”.