Connect with us
Advertisement
Advertisement

Business

Pembrokeshire care home group hit by £150,000 budget blow

Published

on

A COMPANY with six care homes in Pembrokeshire has revealed it is facing a £150,000 financial hit due to controversial Budget measures.

The hikes in National Insurance contributions, combined with an increase in the Real Living Wage, are set to cause “12 months of instability,” according to Mike Davies, managing director of Sunset West Care Homes’ holding company, Dale Roads Group Ltd.

The group operates six care homes, including Langton Hall Residential Home in Fishguard, Pen-Coed Residential Home in Saundersfoot, and Woodfield Nursing Residential Home in Narberth. Other homes in the group are Woodland Lodge Residential Home in Tenby, Torestin Care Home in Tiers Cross near Haverfordwest, and Pembroke Haven in Pembroke Dock.

Mr Davies warned that struggling care homes may need to ask families to help cover the cost of care for their loved ones.

He is supporting a new campaign launched by Care Forum Wales (CFW), which calls for social care to receive an NHS-style exemption from National Insurance increases or emergency financial support to prevent care homes and domiciliary care providers from going bust.

Save Social Care campaign

CFW chair Mario Kreft MBE is leading the Save Social Care, Save the NHS campaign, highlighting the issue in letters to Welsh MPs, Senedd members, First Minister Eluned Morgan, and Health Minister Jeremy Miles. Similar letters have also been sent to Prime Minister Keir Starmer and Chancellor Rachel Reeves.

The campaign, supported by the Five Nations Group, warns that third-sector providers, including charities and hospices, face serious risks due to the Budget measures.

Mr Davies shared these concerns, stating that Sunset West Care Homes is looking at an additional bill of more than £130,000 just to cover National Insurance increases. Additionally, the group expects to incur an extra £18,000 annually to cover Statutory Sick Pay costs.

With 169 registered beds across the group, Mr Davies said further financial strain from wage increases could push care homes to the brink unless additional funding is provided by the Welsh and UK governments.

He said: “Operating during Covid stretched staff resources to their limits. Now, with these additional Budget costs, we are facing a snapshot of the challenges ahead.

“If costs remain as projected, we anticipate an extra £130,000 for National Insurance contributions alone. This doesn’t even account for the wage increases yet.”

“Uncharted territory”

Mr Davies warned that the social care sector in Pembrokeshire could face instability, with smaller operators struggling to survive.

He said: “We’ve already seen care home closures, and the likelihood is that smaller operators will find it even more difficult going forward. We are relying on additional funding to meet these new costs.

“Eighty per cent of our occupancy in the county comes from local authority placements. If there’s a shortfall, families might need to provide additional voluntary contributions.”

National funding crisis

CFW has calculated that the care sector in Wales faces a £150 million funding gap due to Budget measures, including a 1.2% rise in employer National Insurance contributions, a cut to the Secondary Threshold to £5,000, and a 5% increase in the Real Living Wage to £12.60.

Mario Kreft MBE said: “It represents a 37% increase in employer NIC for a member of staff earning £25,000 a year. This is effectively a tax on publicly funded care and on working people, which will ultimately impact families.”

Mr Davies echoed these concerns, adding: “We’ve discussed funding issues with local authorities, but they don’t have the money either. It’s going to have to come from the Welsh Government and Westminster.”

Pictured: Sunset West Care Homes group managing director Mike Davies says Budget measures will hit care homes hard (Pic: Sunset/Herald)

Business

Wales bucks the trend as family businesses decline across the UK

Published

on

NEW analysis of the United Kingdom’s Small Business Survey has revealed a worrying decline in the number of family-owned businesses across the country—except in Wales, which was the only UK nation to see an increase since 2020.

The research, conducted by Geraldo’s, tracked changes in the percentage of small and medium-sized enterprises (SMEs) that identified as family businesses from 2020 to 2023, the latest available data. The overall findings suggest a downward trend, with the proportion of family-run SMEs across the UK dropping by 5% from a peak of 80% in 2021 to 75% in 2023.

Wales stands alone

Despite the overall decline, Wales saw an increase in family businesses over the four-year period, rising from 73% in 2020 to 76% in 2023. In contrast, England, Scotland, and Northern Ireland all experienced declines. Northern Ireland maintained the highest percentage of family-run SMEs, but even it saw a reduction from 83% in 2020 to 77% in 2023.

Sector-specific challenges

The survey also examined changes by industry, revealing that only Farming and the Information and Communications sectors maintained their peak percentages. Farming had the highest overall proportion of family-owned businesses, with 90% of small to medium-sized enterprises in the sector still in family hands.

However, the Arts and Entertainment sector saw the sharpest decline, with family-run businesses falling by 13%—from 57% in 2021 to just 44% in 2023.

The pressures of running a family business

Toni Dawson, owner of Geraldo’s, shared her insights into the struggles faced by family-run businesses:

“It’s a shame to see the number of small family businesses in decline, but I think it speaks to the unique pressures that these businesses can face. When you’re running a business that carries your family’s name, there’s a sense of responsibility that goes beyond the day-to-day work. The people you employ, whether they’re part of your family or not, rely on you—and ultimately, there’s no one else to help carry that burden, unlike in businesses with multiple owners or investors.

“However, there’s also a great amount of pride in being able to carry on the name and heritage of something that means so much to you and your history. I hope that as we see new figures come in, we start to see some more growth again in businesses that are owned by a family long term.”

While family-run businesses remain a vital part of the UK economy, the overall decline highlights the increasing challenges they face. Wales’ ability to buck the trend may offer lessons for other regions looking to preserve this traditional business model in the years ahead.

Continue Reading

Business

Pembrokeshire business fuels up growth with £92m refinancing deal

Published

on

ASCONA GROUP, one of the fastest growing companies in Wales, has secured a £92 million funding package from HSBC UK and Barclays.

The refinancing package, which was led by HSBC UK, will allow Ascona, a Pembrokeshire-based business with operations across England, Wales and Scotland, to continue to pursue its fast growth strategy.

Ascona was founded in 2011 by CEO Darren Briggs and embarked on its current growth strategy in 2017. Since then, the business has gone from two to 60 sites across the UK, serving over 300,000 customers every week.

Darren Briggs, Founder & CEO of Ascona Group – pictured – commented: “We are delighted to complete this important transaction for Ascona. This strategic financing marks a pivotal moment in our growth journey as we continue to strengthen our footprint as one of the UK’s largest independent forecourt operators and one of Wales’s fastest-growing companies. We are incredibly grateful to the HSBC UK and Barclays teams for their support.”

Simon Williams, Relationship Director at HSBC UK, said: “We are pleased to support Ascona Group with this significant refinancing deal. It provides a solid foundation to secure future investment and drive the company’s impressive growth plans. Ascona Group’s entrepreneurial spirit and commitment to expanding its footprint across the UK aligns perfectly with our mission to foster business growth and economic development. We eagerly anticipate the company’s continued success and its positive contributions to the communities it serves.”

Rebecca Davies, Relationship Director at Barclays Corporate Banking, said: “We’re delighted to have worked with the Ascona Group on this pivotal refinance, enabling them to implement the next phase of their ambitious strategic plan. The group has a strong track record of high growth and supporting the communities they invest in across the UK. We look forward to using our industry expertise and regional footprint to further support this in the years ahead.”

In October 2024, Ascona Group was recognised as one of the fastest growing businesses in the UK by the UK Fast Growth Index for the second year running. On top of this, two of its forecourts were named as winners at Forecourt Trader 2024 awards, highlighting Ascona’s commitment to high-quality customer service and operational excellence.

Continue Reading

Business

Major solar farm approved for Pembrokeshire

Published

on

A NEW solar farm set to generate green electricity for thousands of homes has been approved in Pembrokeshire.

The 8.6 MW project, featuring more than 14,000 solar panels, was originally developed by One Planet Developments Limited before being acquired by Shawton Energy Limited. Planning permission was granted last year, and construction is expected to commence soon, with energy production anticipated later this year.

Once operational, the solar farm will generate enough electricity to power approximately 2,500 homes annually, reducing carbon emissions by more than 2,000 tonnes each year.

Jamie Shaw, CEO of Shawton Energy, said: “Acquiring this ready-to-build asset marks a significant step for Shawton Energy as we continue to help UK businesses achieve their sustainability goals while lowering energy costs. This project strengthens our growing solar portfolio and reinforces our commitment to expanding renewable energy infrastructure.”

Robert Wall, director of Shawton Energy and head of sustainable private infrastructure at Lazard Asset Management, added: “We are pleased to support Shawton Energy’s expansion and investment in local renewable energy projects. The increasing demand for electricity requires diverse renewable solutions, and this solar farm will provide UK businesses with the low-cost energy they need.”

One Planet Developments’ business development director, James Stoney, welcomed the project’s progress, stating: “We are delighted to have worked with Shawton Energy on this development. Having taken it from concept to a ready-to-build stage, we look forward to seeing the project come to fruition.”

Shawton Energy, part of the Shawton Group, has been active in the renewable sector for nearly three decades, developing large-scale solar, battery storage, and renewable energy projects across the UK. The company partnered with Lazard Asset Management in 2023 to accelerate the deployment of fully funded commercial solar projects nationwide.

Continue Reading

Crime19 hours ago

Police-chase teenager remanded in custody over drug and firearm offences

A PEMBROKESHIRE teenager who was previously granted bail on drug-dealing charges has now been remanded in custody after facing additional...

News20 hours ago

Paddleboarders rescued off Aberporth by Cardigan’s lifeboat crew

CARDIGAN lifeboat launched on Friday (Feb 16) after two paddleboarders were spotted struggling against an outgoing tide south of Aberporth....

News2 days ago

The Sea Empress Disaster: Remembering the catastrophe 29 years on

IT WAS exactly 29 years ago. On the evening of February 15, 1996, at approximately 8:07pm, the oil tanker Sea...

Business3 days ago

Council take legal action against 686 Pembrokeshire-based businesses

Scores of firms listed in court for non-payment of business rates HUNDREDS of businesses across Pembrokeshire are facing court action...

Crime4 days ago

Commissioner Dafydd Llywelyn launches ambitious four-year policing plan

Public trust at the heart of new strategy DYFED-POWYS Police and Crime Commissioner Dafydd Llywelyn has unveiled his four-year Police...

Community4 days ago

Port’s support for library already ‘many hundreds of thousands of pounds’

THE PORT OF MILFORD HAVEN has confirmed that it is providing “significant financial support” to Milford Haven Library, with its...

Education5 days ago

Alarming new Estyn report reveals Welsh education in crisis

WALES’ education system is in turmoil, with an alarming new report from Estyn exposing deep-rooted issues plaguing schools across the...

News6 days ago

Concerns mount over rising violence in Welsh schools

VIOLENCE in Welsh schools has reached a deeply disturbing level, according to Darren Millar MS, Leader of the Welsh Conservatives,...

News6 days ago

Six-way battle for Haverfordwest’s Prendergast Ward council seat

A SIX-WAY battle to contest a Pembrokeshire seat made vacant following the resignation of local county councillor Andrew Edwards during...

News7 days ago

Broke local authority drops legal action against Withyhedge Landfill

Decision made due to financial constraints CASH-STRAPPED Pembrokeshire County Council has announced it will not proceed with legal action against...

Popular This Week