Big Businesses Pledge Prompt Payment
Business Minister, Shriti Vadera, today met with leaders from big business and urged them to "pay fair" and sign up to the Government’s Prompt Payment Code.
11 new high profile companies have committed to sign-up to the Government’s Prompt Payment Code, and pay their suppliers promptly as set out in their contractual agreements. Companies include Barclays, Sony UK and B&Q.
The pledges were made at a breakfast Seminar at the Department for Business to promote good payment practice and coincide with the launch of the Government’s new information leaflet, ‘Paying on time is good for businesses’.
Business Secretary Lord Mandelson said:
"Government has taken the lead with nine out of ten central Government invoices now being paid within ten days – the challenge is now for business to step up and play fair.
"The promise by FTSE companies to pay on time is very welcome and will hopefully bring an end to the devastating impact which late payments can have on small business".
Business Minister Shriti Vadera went on to say:
"Late payment can be the final straw for small business in the current climate. So the commitment here today by major companies heading up supply chains to pay on time is a win for all businesses".
The Code is just one of a number of Government measures aimed at establishing a better payment culture and follows on from a commitment made by the Prime Minister in October to pay all central Government suppliers within ten days.
The Business Secretary will continue to press the remaining FTSE companies to commit to paying on time and will today write to each FTSE company that failed to attend the Summit, challenging them to sign up to the Code.