LARGE businesses should play by the rules when it comes to paying their suppliers promptly, Small Business Minister Nigel Griffiths says.

Speaking on the fifth anniversary of the formation of the Better Payment Practice Group, Mr Griffiths said large firms should stop altering payment terms to the detriment of small suppliers.

He added: "While things have improved, late payment is still a problem that can have a crucial impact on the survival of a small business.

"More large firms need to learn to play fair."

The concern about the conduct of larger enterprises regarding late payment comes as the BPPG marks five years of work to raise awareness of the problems caused by such tardiness, specifically to small and medium-sized enterprises, and to improve Britain's commercial late payment culture.

The BPPG claims many Public Limited Companies are still not reporting their payment times, though they are required to do so by law.

Under the Companies Act 1985, all PLCs and their large subsidiaries must state in their annual reports the average length of time it takes them to pay their bills.

In 2002, more than 20 per cent fewer companies reported their payment times than in 2001.

To combat this, the BPPG is promoting a culture of better payment and disclosure amongst larger businesses .

This encourages accountancy firms and trade bodies to advise their clients of the benefits of prompt payment.

According to Clive Lewis, BPPG chairman: "Many larger firms impose their payment terms because they believe smaller firms need their custom, so there's plenty of work still to do."

According the Nationwide, one of Swindon's biggest employers, "Regardless of whether our suppliers are big or small, we always aim to pay them on time."

e've worked hard to raise awareness of the remedies available to small businesses under the Act and to effect a sea change in attitudes to paying on time.