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MPs overwhelmingly back legislation which would force big businesses to pay out on time

MPs have shown their support for a Prompt Payment Code. Picture: Getty

MPs have shown their support for a Prompt Payment Code. Picture: Getty

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The latest survey out of Westminster has revealed that an overwhelming majority of MPs would back a bill which saw big businesses forced to pay small businesses more ethically.

According to a recent YouGov poll commissioned by the Association of Accounting Technicians (AAT), almost three quarters of MPs supported the idea of a Prompt Payment Code.

The code would be compulsory for companies employing more than 250 employees, would see maximum payment terms halved from 60 to 30 days, and failing that payment, would be penalised.

Phil Hall, AAT’s head of public affairs and policy, said: “Late payments lead to thousands of insolvencies every year, damage productivity, restrict investment and can also impact on the mental health of small business owners and their employees.

“With almost three quarters of MPs from across the political divide supporting AAT’s recommendations for payment reform, it’s very difficult for the government to continue to drag their heels and back the status quo. We trust that the small business minister will bear these facts in mind when she considers what to do next.”

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