Watford MP Dean Russell spoke in the House of Commons earlier today during Treasury questions to speak of the need for all government departments and bodies to follow the Prompt Payment Code.
The Prompt Payment Code is a voluntary code of practice for businesses, designed to encourage supplier payment in 30 to 60 days, depending on the supplier size. It was established in December 2008 and sets standards for payment practices between organisations of any size and their suppliers.
The Code was strengthened in 2021 so that it plays a more significant role in setting best principles in payment terms and practices.
Speaking after his exchange with the Treasury, Dean said “As I mentioned in the Chamber, a common concern for many small businesses I speak to in Watford and beyond is cash flow. This is impacted heavily when organisations, including government make late payments. I sought assurance from the Treasury that the Prompt Payment Code is robustly followed by all government departments and local government bodies, to ensure SMEs do not suffer due to delays.”
In response to Dean’s question Andrew Griffith MP, Economic Secretary to the Treasury, paid tribute to Dean’s work supporting small businesses, and reconfirmed that the government must lead by example, and as things stands 90% of valid invoices are paid within 5 days and 100% within 30 days.
