Question

To ask the Secretary of State for Business, Innovation and Skills, what measures are in place to enable the Prompt Payment Code is effective in preventing late payments.

Suppliers currently have the ability to challenge signatories via the Prompt Payment Code website. The Government and the ICM recognised the need to strengthen this function, and launched the business led Prompt Payment Code Advisory Board in October 2014. Its remit covers:

• improve monitoring and enforcement of the Code
• promote awareness of the Code
• improve website content and information.

We now plan to develop proposals to ensure that signatories better adhere to the Prompt Payment Code’s principles in the coming months.

We are committed to improving transparency on payment practices. Through the Small Business, Enterprise and Employment Bill we will take a delegated power to introduce a reporting requirement through secondary legislation. This will require large and listed companies to report on their payment practices. The Bill is currently before Parliament.