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

Business event shares key insights in renewable energy, innovation, and leadership

Published

2 hours ago

June 17, 2025

Tom Sinclair

BUSINESSPEOPLE across Wales have gained exclusive behind-the-scenes access to JCB Transmissions to learn about its new hydrogen generator technology, workplace culture, and future developments.

Organised by the Institute of Directors (IoD) North Wales, attendees toured the facility in Wrexham and received expert insight into the company’s role in manufacturing components for carbon efficient machinery from JCB operations director Craig Weeks.

Guests were equipped with professional leadership knowledge as Craig shared his career journey with the multinational manufacturing business, as well as highlighting key decisions made to increase business growth and efficiency.

He also revealed practical ways the firm invests in its workforce by utilising training opportunities provided by the North East Wales Skills Academy (NEWSA) and Gatewen Training Services.

David Roberts, chair of North Wales IoD, believes the event spotlighted JCB’s innovation and contribution toward Wales’ net zero by 2050 target.

He said: “From its latest hydrogen generator technology to its production of gearboxes, axles, and transmissions systems, it’s evident that JCB Transmissions is paving the way as a leader in creative, cutting-edge renewable technology.

“Moreover, I think the experience gave guests the chance to understand ways in which they could make more informed investments and the long-term benefits of upskilling members of their respective teams.

“Seeing business leaders and directors attend from across Wales was also very encouraging and I hope they feel more empowered to excel in their industries.”

Speaking about Craig, an IoD North Wales Skills Development award winner, David continued: “I think there is a lot to learn from his leadership.

“His careful, considered allocation of company resources, alongside his career path from axle and gearbox technician to operations director, demonstrates great creative direction and tenacity.

“Overall, building a supportive and welcoming culture in any firm is essential for longevity and it’s something I think JCB Transmissions showcased to all attendees.”

To become an IoD volunteer, contact David Roberts on 07899 910 293.

For more information and to view upcoming events on the IoD in North Wales, visit www.iod.com/events-community/regions/wales

Business

Air quality at historic Pembrokeshire mill ‘cleanest ever recorded in UK’

Published

7 hours ago

June 17, 2025

Tom Sinclair

THE AIR around a historic mill on the Bluestone National Park Resort estate has been found to be cleaner than any site currently monitored by the UK Government.

Black Pool Mill, an early 19th-century water mill that now houses a restaurant near Canaston Woods, has been recording air quality since 2024 as part of Bluestone’s ongoing commitment to sustainability.

According to the data, the mean average of PM2.5 – fine particulate matter less than 2.5 micrometres in diameter – at the site is just three micrograms per cubic metre. That is significantly below legal limits in Wales (25) and England (20), and cleaner than any figures recorded at official UK monitoring sites.

PM2.5 particles can come from aerosols, vehicle fumes and industrial emissions, as well as natural sources such as dust and pollen. The health impacts of long-term exposure to these particles are well documented, contributing to respiratory and cardiovascular issues.

Professor Paul Lewis, Chief Scientific Officer at Health and Wellbeing 360 and Clean Air Programme Regional Champion for Wales, is leading the research. He said: “Black Pool Mill is clearly way below the legal thresholds. South Pembrokeshire benefits from westerly sea winds and very low levels of man-made pollution. The mill is surrounded by ancient woodland, in a sheltered estuary valley, and sits within Bluestone’s car-free resort – all of which contribute to these outstanding results.”

Environmental scientist Marten Lewis, director of sustainability at Bluestone, said: “We’re delighted but not surprised. This confirms that our efforts to protect the environment and put the wellbeing of our guests and staff first are paying off. Following our recent King’s Award for Enterprise in sustainable development, this shows why Bluestone stands out as a model for regenerative tourism.”

Mr Lewis added that Bluestone is now looking to trial new low-particulate cleaning products and expand monitoring to indoor areas including lodges, the resort pub, and children’s play facilities.

Black Pool Mill reopened in 2023 following extensive restoration and now forms part of Bluestone’s visitor experience, offering seasonal food in a historic riverside setting.

Photo caption:
Clean air: Black Pool Mill sits in ancient woodland near the River Cleddau (Pic: Bluestone)

Business

Specsavers launches first at-home hearing care service in Wales

Published

1 day ago

June 16, 2025

Tom Sinclair

SPECSAVERS has launched a new audiology service in Wales, supporting people across South East and South West Wales, from Fishguard to Caerphilly, who are unable to visit their high street stores.

The new team of hearing experts will provide free home hearing checks to those who cannot leave their homes unaccompanied. The service is being led by audiology directors Andrew Williams and Matthew Maguire, who have joined forces with the existing optics Home Visits team to expand services beyond eye care.

It offers the full range of hearing services available at Specsavers stores – from hearing checks and wax removal to hearing aid fittings.

Audiology director, Andrew Williams, comments: ‘We’re thrilled to bring this service to Wales, helping people who might otherwise struggle to access quality hearing care – whether due to mobility issues, mental health or the challenges of old age.

‘To be the first Specsavers team in Wales to deliver this type of service is a key milestone and one we’re proud to be leading. We’re looking forward to getting to know the local community and bringing essential support to those who need it most, right where they feel safest and most comfortable.’

Customer service director, Alison Warren, who has led the optics team since it first launched 11 years ago, adds: ‘After months of planning, it’s fantastic to see this new service up and running. The impact of at-home appointments goes far beyond clinical care. For many of our customers, especially those living alone, we might be the only face they see that week.

‘It’s not just about hearing aids or eye tests, it’s about connection, dignity and taking the time to really be there for someone.

‘Having Andrew and Matthew join the team means we can bring that same level of care to people’s hearing needs too and that makes a real difference to their quality of life.’

To mark the launch, colleagues from across Wales came together to celebrate at their new office in Palmerston, Barry. The occasion was an opportunity to raise awareness of the new service and highlight the positive impact it aims to have across the region.

For more information or to book an appointment, call 01446 508128 or visit the Specsavers website: https://www.specsavers.co.uk/home-hearing-tests.