In the Autumn of 2018, the Department for Business, Energy and Industrial Strategy (BEIS) launched a consultation on creating a responsible payment culture and tackling late payments.
This issue is of high importance to IoD members, the majority of whom run small and medium-sized businesses and have had issues with delayed payments in the past year.
The IoD has proposed a number of potential ways to change the culture around late payments, including strengthening the Small Business Commissioner and increasing the effectiveness of the Prompt Payment Code. The IoD has also backed calls to raise awareness of this issue amongst boards of large companies and proposed that the most effective way to do this would be to allocate late payments to the terms of reference of a key board committee, e.g. the audit committee. Such a reform would ensure that the late payments issue becomes much more embedded into the corporate governance of major enterprises.
Read full IoD response here