Tuesday 17th August, 2021
GlaxoSmithKline (GSK) has been reinstated on the Prompt Payment Code after meeting the more demanding requirements of the reformed Code.
Two entities of the global healthcare company, GlaxoSmithKline Consumer Healthcare UK Trading Limited and GlaxoSmithKline UK Limited were suspended from the Code in November 2019. According to the PPC, their payment reports from January – June 2019 failed to meet the requirement (as they were then) to pay 90% of suppliers in 60 days.
Since then, the company has drastically overhauled its payment practices and is now paying more than 95% of its suppliers within 60 days and moreover, all its UK based SME suppliers are paid on average within 18 days.
Liz Barclay, Small Business Commissioner said: “In January, we announced the relaunch of the strengthened Prompt Payment Code. The new Code requirement that 95% of invoices for the smallest businesses are paid within 30 days will help to ensure the smallest businesses maintain good cash flow and can continue to grow as part of the Build Back Better agenda."
“It’s encouraging to see that GlaxoSmithKline (GSK) recognises the value of being a signatory to the Code, and as a result have put in the hard work to improve their payment practices."
“Since the Small Business Commissioner took on administration of the Code in March 2020, we have seen more than 1126 new signatories. I urge all businesses to demonstrate their commitment to ethical payment practices and become signatories to the Code”.