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
Maenclochog care home turned down after community concerns
A CARE HOME scheme for a Pembrokeshire village, which saw objections from the local community council after youngsters had ‘absconded’ from similar sites locally, will need a formal application, planners have said.
In an application to Pembrokeshire County Council, Future Nest Care Ltd, through agent Evans Banks Planning Limited, sought a certificate of lawfulness to allow the use of dwelling house Brynawel, Maenclochog as a care home for two youngsters between the ages of five and 16 with specific needs.
A supporting statement said the youngsters would be supported by three qualified and experienced staff members during the day and two at night; the certificate of lawfulness application made to establish that formal planning permission is not required to use an existing two-storey detached dwellinghouse into a residential care facility to accommodate two children, supervised 24/7 by staff.
It added: “The proposed use is designed to provide a safe, nurturing, and family-style environment to help the young residents develop essential life skills and prepare for independent living. The residing youngsters will attend local schools or colleges and participate in community life, in the same manner as any young person living in a traditional family home.
“The qualified and experienced staff will prepare those children for their re-introduction back into a life without supervised care. The residing youngsters would attend the local school or further education college, as would any youngster under 18 living in a family home.”
However, Maenclochog Community Council objected to the proposals after residents expressed their concerns.
In its objection, it said: “This proposal has raised significant concern within the village, particularly as there are already multiple provisions for similar accommodation on the outskirts of Maenclochog.
“In the past, young people accommodated at these facilities have frequently absconded, leading to repeated searches across the surrounding area. This history heightens local anxiety regarding the introduction of further such provision within the village.”
It added: “Neighbouring residents have not been consulted regarding the proposed change of use, which has led to unease and a lack of confidence in the applicants’ intentions and in the suitability of the site for this form of development.”
It went on to say: “Before any decision is made, Maenclochog Community Council strongly believes that local residents should be afforded the opportunity of a public consultation. While the proposal may represent an economic decision for the property owners, it has wider implications for the village and its residents.”
An officer report recommended refusal of the certificate of lawfulness, concluding that “a material change of use would occur in relation to the proposed use of the site and as a result a certificate of proposed lawful use cannot be granted”.
In refusing the lawfulness call, planners said “the frequency of staff changes and the number of vehicle movements associated with the proposed use of the property would be materially different to those associated with its lawful use as a dwelling,” the material change of use to a care home requiring a formal planning application.
Business
Plaid energy policy challenged by Labour after Adam Price interview
LABOUR SAYS MINISTERS MUST EXPLAIN COST AND TIMETABLE FOR PYLON PLANS
PLAID CYMRU’S approach to energy infrastructure has come under scrutiny after Energy Minister Adam Price was challenged over plans to reduce the use of overhead pylons in Wales.
Mr Price defended the Welsh Government’s position during an appearance on BBC Radio Wales’ Sunday Supplement, arguing that communities must have greater confidence in how major grid projects are handled.
Plaid Cymru has pledged to give communities a stronger voice over energy developments and to look more closely at alternatives to overhead transmission lines, including underground cabling where possible.
The issue has become increasingly sensitive in rural parts of Wales, where proposed pylon routes linked to renewable energy schemes have raised concerns about landscape impact, tourism and local consultation.
However, Welsh Labour said the minister had failed to explain when any restriction on pylons would take effect, or who would pay the additional cost of placing cables underground.
A Welsh Labour spokesperson said: “Adam Price keeps saying how clear their manifesto was and yet he won’t say when they’re banning pylons. They won’t say who is paying for the extra cost of undergrounding cables.
“Without certainty, companies won’t invest. That’s thousands of clean, green energy jobs at risk. Plaid need more than a plan to have a plan.”
Labour said the Welsh Government must now set out how its policy would work in practice, including whether it amounts to an outright ban, what exemptions would apply, and how any extra costs would be funded.
The debate highlights the challenge facing ministers as Wales seeks to expand renewable energy generation while addressing public opposition to large-scale grid infrastructure.
Business
New facilities at Haverfordwest Target Shooting Club agreed
A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.
In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.
A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”
It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”
It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.
It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.
“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”
It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”
The application was conditionally approved by planners.
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