Richard has welcomed Government plans to reform the Prompt Payment Code (PPC) to help small businesses from delayed invoices and to provide them with further security and protection.
Understanding the importance of small businesses to the economy and appreciating the impact of the pandemic on them, the Government has decided to use the Prompt Payment Code to ensure that small businesses get paid on time by larger companies.
Through these reforms, the time outlined in the current Code has been halved, meaning companies that have signed up to the PPC will have to pay small businesses within 30 days. Business owners, Finance Directors or CEOs will have to take personal responsibility in acknowledging that suppliers can charge interest on late invoices and that breaches will be investigated.
Commenting, Richard Fuller MP, who sits on the Business Select Committee, said:
"These reforms to PPC will crack down on delayed invoices owed to small businesses providing them with further protections. Small businesses support millions of livelihoods across the UK and many of them have been hit hard by the pandemic.
"By overhauling and strengthening the Prompt Payment Code, we will ensure that small businesses get paid on time by larger companies.
This will relieve some of the pressure on small business owners and will provide more assurance to our valued small businesses and further protections for the jobs and growth stemming from them."
