Persimmon has been suspended from the Prompt Payment Code, the voluntary agreement which sees signatories promise to pay their suppliers on time.

The housebuilder, which recently announced it would be introducing a “snag” retention scheme for home buyers, was among a number of high-profile firms to have been suspended from the code, established by the government to stop large firms taking advantage of suppliers by delaying payment.

The government expects its suppliers to sign the voluntary agreement, under which firms pledge to pay 95% of all supplier invoices within 60 days and in the case of contractors has warned they risk being excluded from being handed public sector work if they fail to settle their debts on time.