Small businesses in York and North Yorkshire today defended their "league table of shame" to pinpoint bad payers.

The Federation of Small Businesses and business information group Dun & Bradstreet have announced their agreement to publish an annual league table from next year.

It will show average payment time of Britain's plcs and their large private subsidiaries.

The idea of disclosing average time taken for the private sector to pay suppliers has already found favour with the Government.

Diana Evans, national councillor and chairwoman of the York branch of the federation, said: "This announcement is an important step in helping to promote a more ethical payment culture in the UK." Philip Allott, the federation's North Yorkshire branch chairman, said the late payment issue was continuing to cause concern to Britain's small firms.

""It is vitally important that they have enough information to hand to see how quickly they can expect to be paid.

"League tables are also a way of changing the payment culture since it is to be hoped that no finance director would want to be at the wrong end of what will be a very public league table."

He pointed out that the Government had already agreed to publish league tables on payment performance in the public sector.

Philip Mellor, senior analyst at Dun & Bradstreet, said: "Late payment of commercial debt restricts business expansion and can cause business failure.

"From an international vantage point Dun & Bradstreet has been concerned for some years that British businesses collectively are among the latest payers in Europe.

"Plcs can be important role models in changing the British culture of not paying bills on time. We are delighted to be part of this initiative which is a first step in this direction."

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