The Office of the Small Business Commissioner has announced that five leading companies – Diageo Scotland Limited, Diageo Global Supply IBC Limited, Diageo Northern Ireland Limited, Diageo Great Britain Limited and Unilever UK Limited – were removed from the Prompt Payment Code (PPC) after failing to honour their commitments. As signatories to the code, the businesses are supposed to pay 95% of invoices within 30 days to their small suppliers and pay 95% of all invoices within 60 days.
The Diageo businesses were paying between 32% and 42% of invoices within the time limits, while Unilver UK managed to pay only 51% of suppliers within the agreed time.
Liz Barclay, Small Business Commissioner, said
"It's always disappointing when a company can no longer reach the payment standards set by the Prompt Payment Code. We will work with the firms mentioned to get them back onto the Code as quickly as possible should they wish to return, because that's to the benefit of the suppliers and to the companies themselves."
Samantha White, CEO of My Credit Controllers added:
"Many of the small businesses that we work with were badly affected by the pandemic, and the last thing they need right now is for big firms like this to hold back money owed to them. We can only hope that being singled out in this way makes other signatories of the PPC take note and sharpen up on paying suppliers. If your business is struggling to get paid then we urge you to get in touch - we can help."
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