Representatives from Aviva, Barclays, Bury Council, City of London Corporation, Fujitsu, Greggs, Skanska and Stort Chemicals will be forming a new advisory board tasked with strengthening the Prompt Payment Code.
The Prompt Payment Code sets out principles for businesses to follow when dealing with and paying their suppliers. More than 1,700 businesses and public authorities have so far committed to these principles, including the representatives on the new board.
The Prompt Payment Advisory Board will:
- improve monitoring and enforcement of the code;
- promote awareness of the code; and
- provide advice on whether or not there is a need to update the code.
Business minister Matthew Hancock said: “Late payment continues to plague businesses, putting a strain on cash flow and preventing plans for growth. We have committed to tackling this problem, but there is no silver bullet.
“This is about a change in culture, which needs businesses and government to work together. The new advisory board will strengthen the Prompt Payment Code, cracking down on poor practice and showcasing good practice.”