After long campaigning for wider use of the prompt payment
code, Stephen Metcalfe, local MP for South Basildon and East Thurrock, has
welcomed the news that in just four months, the number of FTSE 350 firms
signing up to the Code has tripled.
The Prompt Payment Code is a code of conduct which commits
signatories to pay suppliers on time, give clear guidance to suppliers and to
encourage good practice.
Following a debate in the House of Commons, led by Mr Metcalfe,
Business Minister Michael Fallon wrote to big businesses in November urging
them to sign up to the Prompt Payment Code or be named publicly.
There are now 126 FTSE 350 firms signed up, with 94 new firms
since November last year. Three quarters of FTSE 100 companies have
signed, or are in the process of signing, the Code.
The news has been welcomed by business groups, including the
Federation of Small Businesses and the Forum of Private Business as well as a
host of cross party MP’s who took part in the debate in November.
Mr Metcalfe commented: “This is fantastic news for small businesses
in South Basildon and East Thurrock. Small business owners constantly tell me
how vital prompt payment is – and this committed drive from Conservatives in
Government will deliver long-term benefit for businesses up and down the
country”.
“Even yesterday, when I met with representatives from the local
TBA (the Business Association) one of the main issue for discussion was getting
paid by big companies, especially construction companies.”
Michael Fallon, Business Minister, commented: “Late payment is a
real issue for businesses across the country. It is not fair – poor cash flow
can prevent small firms growing and even push them into insolvency. We need to
improve the payment culture and I welcome the response of big businesses in
signing up to the common sense principles in the Prompt Payment Code.”
“But the work will not stop here. I will keep up pressure on firms
to sign up and continue to ensure government leads by example in paying its
suppliers on time. Central government has a good record. Now, I will be
challenging other parts of the public sector to show their commitment to the
principles of the Code”.
Mr Metcalfe added: “This is not just a commercial problem. It is
an ethical one. SMEs are the backbone of our economy and we must make it clear
to big businesses and to public sector bodies that it is simply not acceptable
to pay suppliers outside of the agreed terms. I welcome the Government’s
commitment to tackle the issue and I will continue to keep a close eye on the
situation to ensure that businesses in South Basildon and East Thurrock get the
payment terms they deserve.”
“That’s why, following yesterday’s meeting, I will be again
pushing the Government to discuss with particular sectors what more can be
done.”
