Sky news reports that the Government has announced that the voluntary Prompt Payment Code is to be improved from 1 July 2021, requiring large businesses to pay 95% of small supplier invoices within 30 days, down from 60 days.
Regrettably, the 60 day target will remain for suppliers with more than 50 employees, presumably because larger suppliers are less productive and less efficient at managing their cash flows.
Company directors, chief executives and finance directors will also be required to personally sign the code, ensuring that responsibility is taken at senior levels within organisations. While almost 3,000 companies have signed the code in its current form, many small suppliers still complain of payment delays of more than 60 days, while officials estimate that around £23bn of late invoices are owed to firms around the country
Prompt Payment Code strengthened to help small firms | Business News | Sky News
