Prompt Payment Code strengthened
We are delighted to hear today news that the Prompt Payment Code is to be strengthened and that from July signatories will have to pay suppliers with 50 employees or fewer within 30 days rather than the 60 days currently established.
Having worked with the FSB (Federation of Small Businesses) over the past few months on our streamlined Good Business Charter we know what welcome news this is to them. When the Prompt Payment Code went out to consultation in the Autumn we encouraged our members to use the opportunity to raise this issue over payment within 30 days, something we as an organisation also highlighted. It is great to hear this news from the Small Business Commissioner’s office.
We ourselves recently strengthened our Charter for the bigger businesses to state that they should not simply sign up to the Prompt Payment Code but actively work toward paying suppliers within 30 days as the norm. We are delighted that we will be able to remove that addition in July because the Code itself will require it.
This is a good week for small businesses who make up 99.3% of all UK businesses. Through our collaboration with FSB, more small businesses can have their commitment to ethical practice recognised despite financial constraints. If they sign up to the Good Business Charter this coming year they will receive next year free as well as this year. With Number 10 launching its Build Back Better Council yesterday too it feels like this is a moment in time to take hold of with both hands and celebrate those who care for their employees, suppliers, customers and the environment all whilst paying their fair share of tax.