The Chartered Institute of Credit Management (CICM) have announced that 20 more firms have been suspended from the Prompt Payment Code for failing to pay suppliers on time.
Businesses including Diageo, GlaxoSmithKline, Kier, AstraZeneca, IBM and Unilever are among those that have failed to honour their Code commitment to pay 95% of all supplier invoices within 60 days.
All of the firms, however, are engaging with the CICM and have already submitted action plans towards achieving compliance, proving the effectiveness of the PPC in positively changing payment behaviours.
The Code is administered by the CICM, who are independent from the government, on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). Signatories pledge to uphold its best practice for payment standards to end the culture of late payment.
A further 9 businesses – including Interserve Construction, Centrica and Kellogg Brown & Root – have been reinstated to the Code, having demonstrated compliance for at least the last two consecutive months.
Of the 35 signatories suspended in April and July, 11 have now been reinstated.
CICM’s Chief Executive Philip King, commented, “We will continue to challenge signatories to the Code if the obligatory Payment Practice Reporting data suggests that their practices are not compliant. We are encouraged by those who have already submitted action plans to achieve future compliance, and we are working closely with those businesses to support a better payment culture.”
Small Business Minister Kelly Tolhurst, added, “We want to make sure that the UK is the best place in the world to work and start a business. Tackling late payments will ensure we level the playing field for small businesses so they can grow and thrive. As a former small business owner, I know how damaging late payments can be on cashflow.
“The vast majority of businesses pay their bills on time and it’s encouraging to see some companies engaging with improved payment practices, allowing them to be reinstated on the Code. However, more needs to be done, and today’s action shows we are not afraid to crack down on those who do not pay suppliers on time.”
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