Increase in Prompt Payments

Monday March 4th, 2013

Government Opportunities (GO)The number of FTSE 350 companies pledging to pay small firms promptly has tripled following a government drive to boost sign up to a code of conduct.

Business Minister, Michael Fallon, wrote to big businesses in November urging them to sign up to the Prompt Payment Code (PPC) or be named publicly. As a result, an additional 94 FTSE 350 companies have signed up, taking the total to 126.

Also two dozen smaller non FTSE companies have committed support for the PPC. Three quarters of FTSE 100 companies have now signed up to the Code.

British firms such as Shell, Kingfisher and Diageo are among those that have signed up and are just some of the signatories leading the way in working with small and medium sized businesses in their supply chain on a payment system that works for all involved.

A complete list of FTSE 350 signatories and non-signatories has been published for the first time, by the Institute of Credit Management.

Central government departments are already leading the way in setting a strong example of best practice on prompt payment by committing to paying 80 per cent of undisputed invoices within five days.

Despite this progress, the issue of late payment persists over all sectors and all business sizes. In the coming months the Business Minister will continue to work with businesses groups and the ICM to raise awareness of the code and the issue of prompt payment.

The Minister will engage with the wider public sector including local and police authorities and NHS bodies to ensure that the public sector as a whole follows best practice in the way they treat their suppliers.

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