The Government has set up the new advisory board and tasked members with strengthening its prompt payment code.

Aviva, Barclays, Bury Council, City of London Corporation, Fujitsu, Greggs, Skanska and Stort Chemicals were selected because of their good reputations on payment practice.

Representative from the firms will seek to improve monitoring and enforcement of the Code, as well as promote awareness and recommend fresh measures to improve its impact.

The Advisory Board has its first meeting yesterday and will aim to implement concrete proposals in Spring 2015.

Presently 200 construction companies are signed up to the code, which is designed to speed-up payments to subcontractors with signatories committing to paying their suppliers within clearly defined time limits.

Business Minister Matthew Hancock said: “The new Advisory Board will strengthen the Prompt Payment Code, cracking down on poor practice and showcasing good practice.

“We have committed to tackling this problem, but there is no silver bullet.

“This is about a change in culture, which needs businesses and government to work together.”

Philip King, CEO of the Institute of Credit Management (ICM) and co-chair of the Prompt Payment Code Advisory Board said: “The timing is now right for the Code to be further strengthened and developed as a key tool in helping to tackle the scourge of late payment and driving a change in business culture from top to bottom.

The launch of a dedicated Prompt Payment Code Advisory Board is both a positive and exciting step.”

The government is also taking action to curb late payment through the Small Business, Enterprise and Employment Bill which is currently going through Parliament.

The Bill contains proposals to create a duty for large companies and listed firms to report on their payment practices, as well as reforms to public procurement.

Firms signed up to government prompt payment code

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