Monday 2nd March, 2014

It seems that the issues surrounding the late payment of suppliers have become deeply ingrained in the operations of some of the UK's biggest enterprises. Despite calls for signatories to the Prompt Payment Code to ensure payments within 30 days, or 60 at the latest, it appears to be falling on deaf ears.

National FSB chairman John Allan explained that it was something the FSB had called for as part of a wider set of reforms to encourage better payment practices in the UK.

“We want all large businesses to sign up to the Code, and for their boards to take leadership on this issue," he said.

But added that  “Unless they have exceptional reasons, firms that don’t adhere to a 60 day maximum term should not be allowed to sign up to, or remain a signatory to the Code.”

However it seems that DIY firm B&Q who is signed up to the code, has been guilty of what some term as bullying tactics towards the small firms within its supply chain.

One supplier suggested that the company had refused to detail their verbal demands in writing.

Following on the heels of Premier Foods at the tail end of last year, B&Q have been accused of using the same "pay to stay" policy, referring to it as an "investment for growth" policy. According to Allan, such tactics should be made illegal.

Allan added that “Most people in the UK expect to be paid within 30 days of completing their work, so it’s only fair that businesses should receive the same terms as standard.”