Business
Supply chain bullying affects one in five small businesses

John Allan: Small businesses are no longer prepared to put up with
sharp practices.
NEW RESEARCH by the Federation of Small Businesses (FSB) uncovers alarming levels of widespread unfair dealing. In a survey of 2,500 FSB members, almost one in five (17 percent) said they faced supply chain bullying in one form or another in the past two years. The results indicate a serious deterioration of payment practices much wider than ‘pay to stay’.
The FSB is calling for a toughening up of the Prompt Payment Code, as well as fresh measures to stamp out the most heinous examples of bad practice like retrospective discounting and ‘pay to stay’. The Prompt Payment Code should be a key tool in improving payment culture. The Government has promised to toughen up the code.
The FSB wants to see any company looking to supply the public sector to extend the Government’s standard 30 day prompt payment terms to their own suppliers. Small businesses want 60 day payment terms to be set as an absolute maximum for any business signed up to the Prompt Payment Code.
If a company will not agree to 60 days they should not be allowed to sign up. As part of the FSB research, businesses were asked to give examples of the most common poor payment practices they had to deal with including pay to stay. The FSB has used these examples to create a list of the five most resented payment practices in use across the UK today:
Flat fees – ‘pay to stay’
Also known as ‘supplier assessment charges’ or ‘supplier investment payments,’ these are flat charges which companies levy on suppliers either as a requirement to be on a supplier list, or packaged as an investment into hypothetical future business opportunities. It is often indicated that non-payment will result in de-listing. New research has indicated that more than a quarter of a million (260,000) businesses could be facing so called ‘pay to stay’ charges after five per cent of businesses surveyed said they had been asked to make a payment by a customer or face delisting.
Excessively long payment terms – ‘pay you later’
In 2011 the EU issued a directive requiring all businesses to pay their suppliers within 60 days, or face interest payments on money owed. However, the UK implementation of the directive allows businesses to agree longer terms “provided it is not unfair to the creditor.” This has led to many companies insisting on payment terms of 90 or even 120 days. In effect this becomes an interest free loan from firms in the supply chain to large companies with excessive payment terms.
Exceeding payment agreements – ‘late payment’
As well as insisting on long payment terms, many companies are routinely exceeding agreed terms, or changing terms retrospectively to allow them to miss agreed payment dates. Also thought to be common is the practice of extending payment dates if money is owed on, or close to, the end of a financial reporting date in order to smooth a big company’s balance sheet.
Discounts for prompt payment – ‘one for you, one for us’
Prompt payment discounts are arbitrary discounts big firms give themselves for paying early or even just on time. For example, a firm that has agreed to pay 120 days following receipt of an invoice may also apply an automatic discount of 3% if they pay on or before the 120th day.
Retrospective discounting – ‘balance sheet bonuses’
Some firms seek to apply retrospective discounts to outstanding money owed to a supplier. This involves the company effectively changing the terms of the contract signed with the supplier after a contract has been agreed. Methods used to extract these vary, but include threats of de-listing, withholding payment, ‘marketing contributions’ and previously unagreed discounts applied to specific volumes of business. John Allan, National Chairman, Federation of Small Businesses, said: “When the public think of their favourite brands, they are unlikely to connect them with the sort of immoral payment practices which are becoming all too common across an increasing number of industries. “However, it is clear that whenever these examples come to light, the public shares the same sense of moral outrage as the small firms that have to put up with them on a daily basis. “The Government has indicated that they are prepared to do more to improve the culture of payment practices in the UK and they are right to do so. “The sense I get from talking to our members is that small businesses are fast approaching the breaking point. They are no longer prepared to put up with these sharp practices. Brands that think they can continue to squeeze their suppliers with impunity may get a nasty shock when what they are doing comes to the attention of their consumers.”
Business
The Town Crier Pub, Tenby, expansion plans submitted
PLANS to expand the facilities offered by a Pembrokeshire seaside town pub, which was once a toyshop, have been submitted to the national park.
In an application to Pembrokeshire Coast National Park, The Old Town Crier Pub Ltd, through agent Argent Architects, seeks permission for the installation of a retractable canopy to The Town Crier Pub, 3-4 Upper Frog Street, Tenby’s rear courtyard.
A supporting statement says the scheme for the pub, in Tenby town centre, with a rear boundary on the town’s Grade-I-listed 13th century town wall, “makes a positive contribution to the site, adding an elegant structure, which remains sensitive to the host building and the historic town wall”.
It adds: “The solution is practical and efficient and will enhance the enjoyment of the site.”
A heritage statement accompanying the application says the walls date to the 13th century, replacing earlier wood and earth fortifications, with “significant raising and thickening ordered by Jasper Tudor in 1457 and repairs in 1588 (due to the threat of the Spanish Armada),” visible in the masonry. Different building techniques and materials for different eras can be observed in the wall’s structure.
It says they “were initially built in the 13th century by the Earls of Pembroke, likely in response to the town being sacked by the Welsh prince Llywelyn ap Gruffydd in 1260”.
The application adds: “The proposals are limited to the private realm of the premises’ courtyard, and do not touch the town wall. The experience of the town wall from the public realm will remain unchanged. There is no perceived impact on the historic town wall arising from the proposals.”
The application will be considered by park planners at a later date.
The pub opened in July 2024 and since then, Tripadviser reviews have thanked the business for serving a range of drinks, being dog-friendly and having helpful staff.
The Upper Frog Street site of the Town Crier was formerly the Clarice Toys toy and novelty shop, and is called the Town Crier in tribute to the late John ‘Yobbler’ Thomas, a former proprietor of the shop and a former town crier of Tenby.
John Thomas served as Tenby’s town crier for more than 30 years, and was responsible for bringing four national crier contests to Tenby.
John and wife Caroline, who would become a councillor and serve as mayor in the town, set up Clarice Toys in Tenby’s Upper Frog Street after their marriage in 1961, with the business being later run by their son and daughter, Ian and Kerri.
Business
Adventure hub plans at Moylegrove, Pembrokeshire, withdrawn
PLANS for an adventure tourism hub in north Pembrokeshire, ruled by a high court judge to have been granted unlawfully following a legal challenge, expected to be reheard this year, have now been withdrawn.
Back in 2024, Pembrokeshire Coast National Park’s development management committee approved an application by Adventure Beyond Ltd for an outdoor adventure centre, and associated works at The Old Bus Depot, Moylegrove.
The application had been before multiple meetings of Pembrokeshire Coast National Park’s development management committee; the plot originally used as a bus depot by the founder of the Richards Bros bus company.
Concerns were raised about the scheme, including by local community council Nevern, and opponents feared that increased business for adventure firms will worsen the plight of birds and animals including seals.
Following that approval, a high court challenge was brought by Wild Justice, who claimed the scheme would see nesting birds and breeding seals disturbed by ‘noisy’ coasteers.
But Jet Moore, of Adventure Beyond, insisted that the company had been ‘key’ in developing codes of conduct to ensure wildlife safety.
In September Hon Mr Justice Eyre ruled the National Park Authority’s decision was unlawful as a position statement and 2024 survey of breeding birds published by Natural Resources Wales had not been made available beforehand.
The judge also agreed that the management committee had not been properly informed about the impact of the development on the Aberath-Carreg Wylan SSSI, including the potential for coasteering activities to disturb the chough, for which the SSSI is designated.
On that basis planning permission was quashed and the application will need to be re-determined if the development is to go ahead.
Ceibwr Bay forms part of the Cardigan Bay Special Area of Conservation (SAC), the Pembrokeshire Marine SAC, the West Wales Marine SAC and a Site of Special Scientific Interest (SSSI) and is home to nesting razorbill, guillemot, fulmar, herring gull, chough and kestrel.
Nearby sea caves are recognised pupping areas for grey seals and otters frequent the bay.
Wild Justice argued that an adventure centre would increase recreational activity, such as coasteering and kayaking.
Giving his reaction, Mr Moore claimed objectors had ‘caused more disturbance [to nesting birds] than we ever have’.
At the October meeting of the national park’s development management committee, members heard resubmitted plans were expected.
The national park has now confirmed the resubmitted application has now been withdrawn by the applicant.
“As a result of this withdrawal, the Authority will take no further action on the application, and it will not proceed to determination. The case file will be updated accordingly, and the application will not be considered by the Development Management Committee.
“The applicant has indicated that they may choose to submit a new or alternative application for the site in the future, which would incorporate the existing building.
“Any such submission would be treated as a separate application and would be processed in the normal way. If a new application is received, relevant parties will be notified and given the opportunity to comment.”
Business
Former Crymych village shop could be turned into housing
A CALL to convert a financially unviable disused shop on the edge of Crymych to residential accommodation, which could provide a low-cost home, has been submitted to county planners.
In an application to Pembrokeshire County Council, Clare Griffiths, through agent Josh Macrae, seeks a change of use of a disused shop with ancillary accommodation above, at Ty Ebrill, Clares Shop, on the edge of the village, to an ancillary accommodation unit.
A supporting statement says: “Siop Clare is a mixed-use building in the curtilage of the main dwelling on the site, Ty Ebril, it comprises a small flat above a disused shop below. The flat, constructed in 2007, is comprised of a single modestly sized living space and bedroom area, with a bathroom; the flat is accessed by a set of stairs to the rear of the building. Since its construction the flat has been used as ancillary accommodation for family members of the owners of Ty Ebrill.
“The disused retail premises below is comprised of an open plan shop area with a conservatory attached, the conservatory was previously used as a flower preparation area.
“The shop was in use for a number of decades; it was operated by the current owner since 2003 and was previously an antiques shop, but has been disused since it was closed 2019 as it was no longer financially viable and the owner had changed career. Due to the shop being located within the curtilage of the main dwelling it has not considered suitable for the shop to be leased to another party.”
It adds: “The change of use will require a minimal amount of work to covert the disused shop and modestly sized flat into a small dwelling. The dwelling would be suitable for single occupancy, a small household, or as continued ancillary accommodation for the main dwelling, this would create the opportunity for multi-generational living on the site should the owner sell Ty Ebrill.
“As there is a high demand for housing in the Pembrokeshire area it is felt that the proposal would be suitable and would allow the building to become a viable dwelling, creating a potentially low-cost home in the area.”
The application will be considered by county planners at a later date.
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