To ask the Secretary of State for Business, Innovation and Skills, what steps he is taking to promote the Prompt Payment Code as a means of ensuring that small and medium-sized businesses do not suffer financial hardship as a result of late payments.
17 November 2014
The Government launched the business-led Prompt Payment Code Advisory Board in October 2014. Its remit covers exploring ways to promote awareness of the Code.
The Government and the ICM now plan to develop proposals to ensure that signatories better adhere to the Prompt Payment Code’s principles in the coming months.
In addition, we are working to improve the information available to small and medium sized businesses to help them identify which customers are good payers and offer the terms that fit best with their business model. Through the Small Business, Enterprise and Employment Bill we will take a delegated power to introduce a prompt payment reporting requirement through secondary legislation. This will require large and listed companies to publicly report on their payment practices.