Business

Delaying payments could cost jobs

Published

10 years ago

March 3, 2015

A NEW report from the Association of Chartered Certified Accountants has found that the culture of late payment among businesses inhibits the ability of the UK’s smallest organisations to take on more employees.

Charlotte Chung, ACCA’s senior policy advisor on small and medium sized enterprise (SME) issues has said: “Microbusinesses and other small enterprises are less likely to increase headcount when faced with late payment. Compared to large corporates, we found that the effect of late payment on small businesses who want to expand was significantly greater, by 54% and 47% respectively.”

The report found that businesses with fewer than 50 employees are typically twice as likely as large corporates to report problems with late payment.

According to Charlotte Chung, the cumulative impact of persistent late payment on small business activity is significant.

“Late payment hurts individual businesses and the wider economy in a number of ways, from increased costs to reduced capital spending or suppliers going out of business. What’s more, its impact is exacerbated among credit-constrained businesses. Unsurprisingly, it is the headcount and investment decisions of smaller businesses that are most sensitive to late payment. Late payment and customer defaults can cascade down the supply chain, crossing industries and borders until they reach the most financially secure finance institutions, which in many cases involves the Government.”

While these findings may point to late payment being a wholly harmful business practice that requires hard action to remedy, ACCA advises care be taken by policymakers. The report identifies a very large share of business to business trade that makes use of credit – where payment is not made at the time when goods or services are delivered, but rather at a later date, usually agreed in advance by the two parties.

The important role late payment plays in economic growth means it requires a nuanced legislative touch from policymakers, as Charlotte Chung explains: “Late payment is often understood as a solely negative aspect in business, but this is not necessarily the case. It can also be a useful tool for business growth. Only when this complexity is understood can appropriate responses develop to address the aspects of late payment, which do impact negatively on businesses. ACCA has identified thirteen types of deviations from prompt payment, each of which calls for a different approach from businesses and policymakers. Failing to distinguish between them will lead to poor policies that run the risk of doing more harm than good.”

Along with outlining the thirteen varieties of late payment, the report includes a set of objectives for government intervention in the trade credit marker designed to deal with the negative aspects of late payment without compromising economic growth:

To dampen the systemic impact of late payment on the economy by encouraging ‘deep pockets’ (e.g. financial services firms or tax authorities) with a stake in the entire chain supply.

To ensure that the legal and policy frameworks around incorporation, financing, contracts and insolvency and are aligned in order to deal with different aspects of late payment promptly and in a consistent manner.

To encourage trade credit by giving suppliers a minimum level of protection against supplier dilution – i.e. the reassurance that even when customers fail they can still look forward to a minimum level of recoveries.

To ensure that businesses can look forward to a similar level of discretion in negotiating credit terms with their customers regardless of whether they are new or repeat suppliers.

To encourage the development of financial markets so that businesses have quick access to alternative financing options in response to charging terms of credit or unexpected late payment.

Business

Battery storage system by Pembroke Power Station approved

Published

13 hours ago

January 19, 2025

Bruce Sinclair - Local Democracy Reporter

A SCHEME for a battery storage facility near Pembroke Power Station which will put the county at “the forefront of South Wales’ low-carbon future” has been approved by county planners.

In an application recommended for conditional approval the January meeting of Pembrokeshire County council’s planning committee, RWE Generation UK plc sought permission for a Battery Energy Storage System (BESS) of up to 212 battery units including ancillary works, along with a connection to the National Grid on land next to Pembroke Power Station, Pwllcrochan, Pembroke.

An officer report for planners said: “The application site comprises an area of approximately 32 hectares of primarily agricultural land within the countryside, to the south of Pembroke Power Station.

“As well as the main part of the application site that would accommodate the BESS, the application site also includes a linear cable route to connect the BESS to the National Grid substation located adjacent to Pembroke Power Station, temporary construction laydown areas and a new means of access from the main power station access road to the west.”

Members heard that extensive mitigation was planned for visual impacts related to the proposal.

Speaking at the meeting, project manager Victoria Williamson said RWE wanted the Pembrokeshire site to be “at the forefront of South Wales’ low-carbon future,” the battery facility providing storage of excess electrical energy from the ‘grid, contributing to a consistent energy framework by storing energy at peaks and making it available for periods of higher demand.

Members heard local town and community councils had been liaised with, and local households had been informed of the scheme, with “overwhelming support for the proposal”.

Following a request for information from Cllr Alan Dennison, members were told that, if approved, it was hoped the scheme would start at the end of 2025, and be operational by early 2028.

Moving approval, Cllr Brian Hall said: “If we don’t go down this line, to be honest I don’t think the power station will stay there; it’s essential to go down this green energy, with the extra staff and benefits to the Pembrokeshire economy I think it’s marvellous, I have no hesitation whatsoever to move this recommendation.”

The recommendation for conditional delegated approval from the council’s head of planning, once a draft Habitat Regulations Assessment had been ratified, was unanimously passed by committee members.

Business

Residents meet with local politicians over A477 road safety concerns

Published

2 days ago

January 18, 2025

Tom Sinclair

MEMBERS of the Eglwyscummin Community Council and residents of the village of Red Roses today (Friday 17^th January) called a road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP to highlight what they consider to be an ‘unsafe’ junction.

Growing concerns about the safety of the Red Roses junction brought about by the increase in near misses and accidents from users of the junction was evidenced during the meeting. The community hope that continued pressured on Welsh Government will deliver the additional safety modifications needed to reduce the number of incidents happening at the junction.

The local Member of Senedd for Carmerthen West and South Pembrokeshire, Samuel Kurtz, has been leading the campaign with the Community Council and has been liaising with SWTRA and Welsh Government Ministers to call for action on this junction.

He has already delivered a successful campaign to change the road layout of the notorious A477 Nash Fingerpost junction following several serious accidents, which is already being of real benefit to the local community. He hopes to build on this success by continuing to fight for further improvements in Red Roses and address the speeding issues being experienced on the A477 through the village of Milton.

Following the community meeting, Samuel Kurtz MS commented: “The Community Council have been extremely active in sharing the experiences that drivers are having at this junction and have put forward some recommendations that they believe will make it safer. Sadly, it’s a typical case of the junction meeting all the criteria on paper, but in practice, it’s dangerous and needs addressing.”

“ In this case, traffic travelling Westward towards Pembroke at speed have no turn off lane before having to slow down to virtually a standstill to make the narrow sharp lefthand turn off the A477 to Red Roses. On this fast busy road, it has been the root cause of the sign being crashed into on several occasions as drivers have failed to make the turn. There are crashes or near misses, as cars break sharply to try to make the turn as safely as possible.”

He added: “I believe that there are some relatively straight forward steps that can be taken which will deliver improvement and I’ve been asking Welsh Government for a review of the A477 and will invite road officials to see for themselves the junction in use. But I do need feedback from the local community to help make the case to Welsh Government. I’m asking people to get in touch with me via my Facebook page or email to share their experience, opinion, or example of any issues they may have had or witnessed using this stretch of road.”

Pictured above: Members of the Eglwyscummin Community Council at the road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP discussing safety concerns at the Red Roses junction.

Business

Haverfordwest Farmers Market: Local producers and fresh produce

Published

2 days ago

January 18, 2025

Tom Sinclair

AS County Councillor for Castle Ward, Thomas Tudor expressed his delight after visiting the Haverfordwest Farmers Market. Held in Castle Square, the market showcases a variety of high-quality local produce, offering a vibrant community shopping experience.

Fresh produce every Friday

The Haverfordwest Farmers Market takes place every Friday from 9:00am to 2:00pm in the heart of Pembrokeshire’s bustling county town. Visitors can explore a wide range of stalls offering fresh produce, meats, crafts, and organic goods directly from local farmers, growers, and artisans.

Market Manager Joanne Welch explained: “Customers enjoy a memorable shopping experience in a vibrant, friendly atmosphere, have confidence in the producers, their products, and can always rely on the high-quality produce available at every market.”

Why shop local?

The market serves as a hub for supporting local businesses and reducing food miles. “Buying local makes sense,” Joanne continued. “Not only does it benefit the local economy, but it guarantees the freshest produce that is great value for money—and tastes fantastic too!”

What you need to know

Purpose: Farmers markets provide a unique opportunity to connect with local producers while enjoying fresh, quality food. Supporting these markets ensures a sustainable future for local farmers and reduces the environmental impact of long food supply chains.
Hygiene standards: Stallholders adhere to the same strict hygiene regulations as other food retailers, ensuring safety and quality for customers.
Cost: While prices may not always be cheaper, the quality and freshness of the products offer excellent value for money.

For those looking to enjoy a unique shopping experience, Castle Square in Haverfordwest is the place to be every Friday. Explore the best of Pembrokeshire’s local produce and craft while supporting your community.