5 companies have pro-actively engaged with the Prompt Payment Code Compliance Board by submitting action plans outlining how they plan to achieve compliance and meet the commitments of the Code.
The 5 companies reinstated are:
- BT PLC
- Kier Highways
- Seddon Construction
Prior to being suspended from the Code, BT PLC were paying 59% of invoices within 60 days and are now paying at 94%.
IBM were paying 55% of invoices within 60 days and are now paying at 90%.
Kier Highways were paying 79% of invoices within 60 days and are now paying at 98%.
Screwfix were paying 18% of invoices within 60 days and are now paying at 91%.
Seddon Construction were paying 19% of invoices within 60 days and are now paying at 92%.
4 of the companies reinstated are currently working towards paying 95% of all invoices to meet the code criteria.
Interim Small Business Commissioner, Philip King said: “A growing number of businesses have signed up to the code in recent months and this shows the importance companies place on being signatories to the Code.
“The current pandemic crisis is placing an extraordinary pressure on the cashflow of businesses and it is more important than ever that Code signatories honour their payment practice commitments. I welcome other businesses to become signatories and help change the culture of late payments which will stimulate the economic recovery of UK businesses.
“It is encouraging to see suspended signatories now adhering to the requirements of the Code and being reinstated but the companies who continue to treat their suppliers unfairly remains a concern. I will continue to challenge signatories if the obligatory Payment Practice Reporting data, or a specific challenge from a supplier or representative body, suggests that their practices are not compliant with the Code.”
A Spokesperson for BT PLC said: “BT PLC has been a long-standing supporter of the Prompt Payment Code and we’re delighted to be reinstated. We have moved from paying 59% of invoices within 60 days to 94% in 10 months thanks to improvements in how we process supplier invoices. This progress is particularly timely given the pressures Coronavirus is putting on cashflow across our diverse supply chain and SME suppliers.”
Andrew Davies, Chief Executive at Kier said: “Working collaboratively with BEIS and the Office of the Small Business Commissioner we are pleased our actions have resulted in this latest progress for Kier Highways. Following the reinstatement of other Kier businesses onto the Prompt Payment Code we remain committed to working proactively and in partnership with our suppliers.”
Contact: Manveer Mann 07741 703218
The Prompt Payment Code (PPC) is a voluntary code of practice for businesses, administered by the Office of the Small Business Commissioner (SBC) on behalf of BEIS. It was established in December 2008 and sets the standards for payment practices between organisations of any size and their suppliers.