Firms pledge to pay bills on time

The number of large firms promising to pay smaller suppliers on time has tripled as a result of a Government drive. A total of 126 FTSE 350 firms and 75% of FTSE 100 companies have signed up to a new code over prompt payments.

Business Minister Michael Fallon explained that late payments are a massive problem for many businesses up and down the country. He said it is not fair on these firms because it can prevent them from growing – and possibly drive them into insolvency. Mr Fallon said actions need to be taken to improve the payment culture in the UK, and the Prompt Payment Code sets out a number of common sense principles to that end.

“Signing up demonstrates a serious pledge to pay promptly. Reports of any companies found to be falsely committed to the value of fairness in the code will be taken very seriously,” he added.

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