Thousands of Sussex firms struggling in the recession have been allowed to delay tax payments to stay afloat.

The Government said 5,610 companies in Sussex had joined its Time to Pay scheme, under which businesses make an agreement with HM Revenue and Customs to defer tax bills for a period of several months.

The scheme was set up last November to help any businesses finding it difficult to pay their taxes and duties, including income tax, corporation tax, VAT, PAYE, and National Insurance.

Ministers hope that by retaining more of their cash, firms can be more flexible about their finances, grow their businesses and, in extreme cases, stave off bankruptcy.

The amount of taxes for which payment has been delayed added up to £78m across Sussex by the beginning of August.

The number of businesses taking part included more than 1,000 in Brighton and Hove, almost 2,000 in East Sussex and more than 2,600 in West Sussex.

South East Regional Minister Jonathan Shaw told The Argus he was urging businesses to take up the support to help them through the recession and position themselves for economic recovery.

Mr Shaw has also written to local authorities and health bodies to urge them to sign up to a new code of good practice which encourages organisations to settle bills on time.

He said late payment was cited as the biggest concern for business, particularly small and medium-sized companies.

By signing the Prompt Payment Code organisations commit to pay suppliers on time, give clear guidance to suppliers and encourage good practice.

However, NHS South East Coast and Western Sussex Hospital trust are the only organisations in Sussex to have signed so far.

Mr Shaw said: "The recession has hit us all, but the Government is committed to doing all it can to help businesses as well as individuals ride the storm and come out the other side more resilient.

"Thousands of businesses have responded to the help available but I urge all those who have not, to take advantage.

"To emerge stronger from this recession we need to work together, that means Government and regions, as well as public bodies and businesses."