The news has been welcomed by business groups, including the Federation of Small Businesses and the Forum of Private Business.
The Prompt Payment Code is a code of conduct which commits signatories to pay suppliers on time, give clear guidance to suppliers and to encourage good practice.
Jennifer commented: “This is great news for small businesses across Newcastle. As somebody that works in business I know how vital prompt payment is and I am pleased the Government has taken action. This measure alone is not the only answer to a problem, but hopefully it will help small businesses to maximise their cash flow.”