MINISTERS have announced plans to keep a detailed public record of how long it takes major companies to pay their smaller suppliers, in a bid to stamp out late payments which can cripple small businesses.
Business minister Matt Hancock unveiled the plans yesterday, which will record the average payment time; the proportion of invoices paid after the agreed date; and the proportion of invoices paid within 30 days, over 30 days, over 60 days and over 120 days.
Reporting this information will be a mandatory requirement for all large and quoted companies every quarter.
Hancock said the planned changes would prevent big businesses riding “roughshod” over their suppliers, who often failed to complain for fear of losing out on vital contracts.
“We want to tackle the underlying culture by increasing transparency on payment practices and performance,” Hancock said. He has spoken in the past about how his family business almost went under following a late payment.