This week, the Accounts Payable Association brought together members and supporting partners at the House of Lords for our Annual Strategic Briefing—a key moment in the calendar for shaping direction and discussing the future of the industry.
Throughout the day, attendees engaged with thought-leaders and specialists on the challenges and opportunities facing the accounts payable and wider finance community, including the new UK corporate criminal offence ‘Failure to prevent fraud’ and the wider consequences of data breaches within organisations.
The final panel of the day saw a lively and candid debate unfold, featuring newly inaugurated Small Business Commissioner Emma Jones, who joined industry leaders to examine the effectiveness, limitations, and future direction of the Fair Payment Code one year after its launch.
Commissioner Jones opened the session with updates on her office’s ongoing work, outlining three key areas of focus:
These priorities set the stage for a broader and more challenging conversation on the Code’s real-world impact.
The panel discussion that followed—featuring Jamie Radford, APA, Richard Ransom, Bottomline and Phil Spence, Private Consultant—centred on the slow uptake of the Fair Payment Code among larger organisations.
Phil Spence posed a pointed question that resonated across the room:
“Are you only attracting people who KNOW they can get gold standard, which means the ‘dangled carrot’ approach is not enough to target businesses that need to do better?”
This led to deeper reflections on whether the voluntary nature of the Code inherently limits its effectiveness.
Commissioner Jones added crucial insight: many larger organisations have cited current macroeconomic conditions as the reason for delaying sign-up. Several companies, she noted, have expressed hesitation due to financial pressures and uncertainty, having choosen to wait until after the Budget before making commitments.
This raised significant concern among panelists about whether market conditions are being used as justification for slow progress—and whether voluntary schemes can thrive in periods of economic strain.
The conversation escalated when the panel addressed a fundamental question:
“How can we help enforce it?”
Commissioner Jones was candid. The Fair Payment Code is not enforceable, she explained. Once a company opts in, it must supply data and two references, and removal only occurs if performance standards slip. She added that the Department for Business and Trade is working to strengthen the team tasked with reviewing poor reporting.
Despite these efforts, she emphasised that the Code ultimately depends on businesses’ good instincts and a drive to ‘do the right thing’, as participation remains entirely voluntary.
The debate then widened to consider whether the legislation underpinning the Code is sufficiently robust—or whether it risks introducing unintended consequences.
Phil Spence referenced France’s equivalent of the prompt payment code as a cautionary example: despite stricter legislation, late payments reportedly increased over time because the rules failed to allow for operational grey areas.
This raised a challenging question for the UK:
If stricter rules ultimately cause payments to be made later than 30 days, is the Code truly benefiting the small businesses it aims to protect?
The session concluded with broad agreement from the room, that while the Fair Payment Code has made positive inroads, it is not yet the complete solution. Calls were made for clearer incentives and potential legislative refinement, and aside from an acknowledgement that ongoing economic realities were having a dampening effect on uptake, these adjustments could play a role in determining whether the initiative can achieve its intended impact.
The discussion underscored the urgency of improving payment culture in the UK—and the vital role that collaboration between government, industry, and SMEs will play in driving meaningful change.
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