Cabinet adopts new business-friendly payment code

Worcestershire County Council's Cabinet has agreed to adopt a new national code which aims to champion the importance of paying suppliers promptly.

Cabinet, which is made up of ten Conservative councillors, endorsed a recommendation to adopt the Prompt Payment Code (PPC) when it met at County Hall on Monday (March 8). The PPC is a Government initiative developed with the Institute of Credit Management.

Its signatories undertake to:

1)    Pay suppliers on time

•            Within the terms agreed at the outset of the contract
•            Without attempting to change payment terms retrospectively
•            Without changing practice on length of payment for smaller companies on unreasonable grounds

2)    Give clear guidance to suppliers

•             Providing suppliers with clear and easily accessible guidance on payment procedures
•             Ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers
•             Advising them promptly if there is any reason why an invoice will not be paid to the agreed terms

3)    Encourage good practice

•             By requesting that lead suppliers encourage adoption of the code throughout their own supply chains

The County Council has already signed up to a 10-day payment pledge, which was championed by The West Midlands Task Force and supported by Advantage West Midlands.

Cllr Adrian Hardman, Worcestershire County Council's Cabinet Member for Finance, said: "We are committed to prompt payments and promoting good practice to our suppliers. Signing up to the PPC is another example of the County Council's determination to support businesses in a meaningful and practical way."