This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Growing MP support for late payment action

08 January 2019

Increasing support from MPs to assist members of the supply chain suffering late payment issues has been confirmed by a recent YouGov poll.

It showed that 73% of MPs approve of changes to the voluntary Prompt Payment Code recommended by the Association of Accounting Technicians (AAT).

With 16% of MPs expressing no firm views on the issue, 11% said they did not know and no votes were recorded in opposition to the proposals.

If implemented, the code will become compulsory for companies with more than 250 employees, with financial penalties for those who regularly make late payments to their supply chain.

Payment terms will also be significantly reduced from 60 to 30 days, which will be welcomed by SMEs having to deal with cash flow issues caused by late payment.

Industry commentators have previously stated that SMEs are seen as a source of free credit by some larger organisations, as they frequently have to pay their suppliers within 30 days while sometimes waiting for 90 days for payment themselves.

The new measures will be enforced by the small business commissioner.

Industry bodies have previously gained significant levels of support for actions proposed by Peter Aldous MP for cash retentions to be placed in trust accounts to protect them in the event of larger companies going out of business.

Additional attention on the issues experienced by SME members of the supply chain has been driven by the collapse of Carillion in early 2018, with millions of pounds in retention payments failing to be paid as a result and having a significant negative impact on thousands of businesses.


Print this page | E-mail this page

http://www.fsifm.com
PFM


MOST VIEWED...

View more articles
Article image

Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the r...
Article image

Blue sky thinking recommended to drive Clean Air Day message

Today is Clean Air Day, highlighting the issues faced around the UK caused by poor air quality and the impacts this has on health and wellbeing....
Article image

New law guarantees payment for exporting electricity

Facilities of all types with renewable energy installations of up to 5MW will be paid for electricity exported to the grid following the introduction of a ...
Article image

EXCLUSIVE Inside Canon UK's environment-friendly building in Reigate

At Canon UK sustainability and FM are inextricably linked. PFM visited the Woodhatch site in Reigate to report on the effectiveness of this approach....

Benchmarking maintenance

BSRIA has just published this year's operation and maintenance benchmarking report as a guide for building operators to evaluate their performance against ...
Article image

Landmark lighting marks start of new era for basketball arenas

Players like it; coaches like it; and the spectators like it – the innovative approach to lighting the playing area at the new home of Leicester Riders bas...