The new measures will target an increase in the accountability of signatories and legislate to remove legal barriers preventing firms from accessing invoice finance.
Simon McVicker, Director of Policy and Public Affairs at PCG said: “The plans laid out by the Government are a clear step forward and it is encouraging to see that the Business Secretary recognises how important getting paid on time is for small businesses. However, talk of changing the ‘culture of payment’ among larger firms will only go so far in addressing the problem.
“In order for it to be effective, the Prompt Payment Code must be compulsory for large companies and it must include sanctions for the worst offenders.
"We also need a system for small businesses to report offenders anonymously, so they are not compelled to jeopardise important client relationships by sticking their heads above the parapet.
“The reality is that the only way to ensure big companies pay up on time is to take direct legislative action.”
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
Susie Hughes © Shout99 2014