The grocer said farmers, food producers and other small businesses that supply it with goods will continue to be paid immediately until September.

Morrisons brought in the policy in March and said it would last until the end of May in a bid to “support the cash flow” of small businesses “during a difficult time for the British economy”.

The retailer also reclassified companies with up to £1m of businesses with Morrisons as a smaller supplier – a limit that had been previously set at £100,000 – allowing more firms to benefit from speedier payments.