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- By Andy Smith
A government consultation on proposals to make payment rules for businesses tougher is set to close this week.
The Department for Business, Energy and Industrial Strategy
(BEIS) said it wanted to engage with current signatories to the Prompt Payment
Code on what a strengthened Code would look like.
Among the proposals on which it is seeking views is a plan
to ask signatories to commit to pay 95% of invoices to smaller businesses
within 30 days, and to pay 95% of invoices from all other suppliers within 60
Currently, signatories of the Code undertake to pay
suppliers on time within the terms agreed at the outset of the contract.
The consultation is also exploring the possibility of measuring
compliance by the percentage of invoices paid to terms and the average time
taken to pay invoices, as well as producing a logo to display on company
websites, contracts and tenders.
Around 300 organisations have signed up to the Code during
the covid-19 pandemic, according to BEIS, which said it was “keen to maintain
this momentum” and see a reformed code “as a key lever in improving payment
practices across companies and organisations of all sizes”.
The consultation closes tomorrow (16 October) and can be accessed here.