Greg Hands M.P. has welcomed the news that the number of FTSE 350 firms signed up to the Prompt Payment Code has tripled in just four months. Since November last year, 94 new firms have joined. Of the FTSE 100 companies, 64 have signed the Code and a further 12 are in the process of signing it.
This is regarded as substantial progress by business groups, including the Federation of Small Businesses and the Forum of Private Business. Late payment is a problem experienced by three-quarters of FSB members.
The Prompt Payment Code commits signatories to pay on time, to give clear guidance to suppliers and to encourage good practice. The surge in numbers follows the intervention of the Business Minister, Michael Fallon, who wrote to large firms in November urging them to sign up to the Prompt Payment Code or be named publicly.
Commenting, Greg Hands M.P. said: “This is great news for small businesses in Chelsea and Fulham. Small business owners constantly tell me how vital prompt payment is – this committed drive from Conservatives in Government will deliver long-term benefits.”
The Business Minister, Michael Fallon M.P., added: “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.”