Connect with us
Advertisement
Advertisement

Business

Bullying claims at Development Bank ‘extremely worrying’

Published

on

ENTREPRENEURS have been bullied and forced to hand over control of their businesses after approaching the Development Bank of Wales for financial support, the Senedd heard.

Paul Davies, who chairs the economy committee, raised “extremely worrying” evidence from Dylan Jones-Evans, an economist and academic, about the Development Bank.

Mr Davies said the committee also received emails from people who had dealings with the bank and felt they had been bullied out or had their businesses essentially stolen.

Prof Jones-Evans told the committee: “Unfortunately, I have been approached by … businesses prior to this review who feel they have not been treated fairly with valuations being too low, where decisions have taken far too long, and where terms are unacceptable.

“Worst still, there have been instances where some have been bullied by the directors imposed on them, where they have been forced out by dubious means and where founders feel they have not been supported by the bank.”

Prof Jones-Evans warned that young, inexperienced founders found themselves in this position and should have received far greater support.

Mr Davies said: “If these reports are accurate, those actions may well have extinguished that entrepreneurial spirit, which would be an absolute tragedy and exactly the opposite of what the bank was established to do.”

The former Tory group leader added that much of the testimony was supplied anonymously, which limited the committee’s ability to scrutinise the evidence.

But he cautioned: “It only takes a brief look on a news website to find situations where allegations such as bullying have been made against other public institutions where, in some cases, they have been ignored and, as we know, sometimes these cases do not end well.”

Mr Davies stressed: “I just want to be clear: I have discussed these accusations with the bank via correspondence and in a private meeting and they absolutely refute them.”

Leading a debate on November 27, he said most of the evidence received by the committee, which made 13 recommendations, was supportive of the bank and its operations.

Mr Davies also raised concerns about the Development Bank being reclassified by the Office for National Statistics as central government in 2021.

He explained this leads to “double counting”, with the Welsh Government having to keep money in reserve to cover any uninvested funds given to the bank.

Plaid Cymru’s Luke Fletcher said the transition from Finance Wales to the Development Bank marked a step change in 2017, with investment doubling to £124m by 2022/23.

Mr Fletcher advocated merging the bank with Business Wales to create a one-stop shop.

Labour’s Hefin David pointed out the bank is not covered by Wales’ Future Generations Act, raising suggestions a social value clause could be inserted into grant and loan agreements.

Samuel Kurtz, the Conservatives’ shadow economy secretary, raised warnings from the Federation of Small Businesses of “massively fragmented” business support.

He expressed concerns about troubling evidence from Prof Jones-Evans that the Development Bank did nothing to stop imposed directors bullying out founders.

The economy committee scrutinised bank executives on November 20, questioning a 3.2% cost-of-living pay rise awarded to all staff including those earning six-figure salaries.

Dr David pointed out that annual remuneration for the highest-paid director increased by 20% from £217,000 to £260,000 between 2023 and 2024.

Giles Thorley, chief executive of the bank, which wrote off £27m in 2022/23, said 3.2% was lower than the Welsh Government’s rise, attributing the 20% to performance-related pay.

Rebecca Evans, Wales’ economy secretary, said the Development Bank has invested £778m in more than 3,900 businesses since 2017, supporting 41,700 jobs.

She said: “That’s a total impact of £1.66bn on the Welsh economy – real investment, real businesses, real growth, supporting businesses in every part of Wales.”

Turning to concerns received by the committee, Ms Evans said: “Finance can be complex and I am aware there are times when customers don’t understand the role of the bank or the obligations of the bank and this can, regrettably, lead to misunderstandings and complaints.”

She added: “I’ve had the opportunity to address concerns with officials. It is the case, though, that founder members of companies are sometimes removed by their boards.”

Ms Evans told the Senedd she has confidence in the leadership of the bank and its board, with an external review set to take place next year.

Business

Pembroke Dock restaurant to close on Christmas Day after £23,000 rates rise

Published

on

A PEMBROKE DOCK restaurant owner has said she is “devastated” after being forced to close her business on Christmas Day following a projected business rates increase of more than £23,000.

Randalls Restaurant, which operates from The Dolphin Hotel in Pembroke Dock, has been run by Natalie Newton and her family since 1999. Ms Newton took over the business in 2018 after her parents retired, overseeing a major transformation from a traditional pub and bed and breakfast into a hotel and restaurant.

Chef Ben Randal and fiancée, Natalie Newton who owns the hotel (Image: Dolphin Hotel)

For the past seven years, she and her fiancée, chef Ben Randall, have worked to build the restaurant’s reputation, offering breakfasts, lunches and evening meals using locally sourced produce where possible, as well as hosting special events including Christmas parties, buffets, afternoon teas and themed dining nights.

However, Ms Newton said she was left with no option but to close the restaurant after discovering that its business rates are expected to rise from around £10,000 to £33,000 from next year.

She said: “It’s a great shame. My father is absolutely devastated – this was his legacy. I took it over and built a really successful restaurant, and now it feels like it’s been taken away.”

Ms Newton said she checked her projected rates bill using the Government’s online calculator and was shocked to see that it had more than trebled. With quieter trading months expected early in the year, she said the increase was simply not sustainable.

“January, February and March are quieter months,” she said. “From April I’d need to find an extra £2,750 every month. Even if I managed it, I’d be working for nothing, and I’m worried I wouldn’t be able to pay my bills and would end up in the red.”

She added: “I’ve made the decision to close straight after Christmas Day. It’s drastic, but I have to keep my head above water and protect everything my parents worked for.”

Ms Newton said the decision had not only affected her family but also the restaurant’s eleven members of staff.

“I’ve invested everything back into this business,” she said. “Every penny the restaurant has made has gone straight back into it. I’ve worked every day, nights and weekends, and I haven’t had Christmas at home for seven years.

“For the last six months I’d look around the restaurant when it was busy and think how lucky we were. People were happy, good food was going out. Now it feels like it’s all been snatched away.”

The Herald has reported extensively on growing concern among Pembrokeshire businesses over sharp increases in business rates following updated valuations, with several town centre traders warning that rising fixed costs are pushing otherwise viable businesses to the brink.

Ms Newton said she intends to focus on running the hotel after Christmas but will miss the restaurant and its customers.

“I’m going to miss everyone,” she said. “I’ve loved building relationships with customers over the years. I just want to thank everyone who believed in Ben and me and supported us.”

Business rates in Wales are due to be updated from April 1, 2026, to reflect current property values. The Welsh Government has said that while many businesses will see their bills fall, others will face increases.

It has announced that any business facing an increase of more than £300 will have the rise phased in over two years rather than being applied in full immediately.

Cabinet Secretary for Finance and Welsh Language Mark Drakeford said previously: “We know businesses have faced significant economic challenges in recent years. This support package will help them manage the transition to updated rates bills while we deliver on our commitment to a fairer rates system.”

Continue Reading

Business

Salon plans for Haverfordwest car valet site approved

Published

on

RETROSPECTIVE plans to change a Pembrokeshire car sales/valet area to include a barber shop and tanning salon have been given the go-ahead.

In an application to Pembrokeshire County Council, Zizo Barbers & Affordable Cars, of Cambrian Place, Haverfordwest sought permission for the change of use of previously granted valet and car sales area, the works completed in 2024.

A supporting statement through agent Hayston Developments & Planning Ltd said the former commercial garage business has been operating in several guises from the premises for many years and has included petrol sales, motor servicing and repairs, MoTs, vehicle valeting, car sales and customer parking.

This followed on from a 2011 permission for the partial demolition of the original commercial garage, with a later approval for the site refurbishment to provide a workshop, valeting and offices for the existing car sales.

A supporting statement said: “The proposed update to a change of use involves the replacement of a car valeting service, which took place under a covered area at the rear of the site by a wash and valet operation – and restricting this service to those cars being sold at the Cambrian Place site. The use of a former office / store as a barber shop.

“The use of the former customer waiting area as a tanning salon including a new moveable timber shed for use as a meet and greet facility and as a car sales office. Provision of a communal parking area. Whilst retaining the principal use of the site for the sale of used cars.

“It is therefore suggested that the proposal will reduce both the elements of noise and the generation of dust whilst improving air quality as substantially fewer cars being power washed and valeted as well as the visual impact of these activities in this very public location – and with adjacent residential properties.”

Haverfordwest Town Council had objected to the scheme on highway safety grounds, but an officer report recommending approval said: “Highways colleagues have advised that the mixed use at the site is not likely to generate a significant number of trips that would lead to congestion and/or road safety issues due to the hours of operation are suggestive of visitors in the non-peak hours over the course of the day.

“In addition, highways colleagues have confirmed recorded accident history is negligible at the site, with one accident in 2023 at the nearby junction as a result of a rear shunt.”

It also said that, as the site lies adjacent to the A40(T) Welsh Government as a highway authority were consulted on the application, but has not not issued a direction in respect of this application.

One letter of objection had also raised issues of traffic and highway safety, chemical and detergent waste from the site and occasional activity after 5pm.

The report said the cessation of the valeting/washing use will reduce water usage at the site and any activity outside normal hours was an enforcement matter.

The application was conditionally approved by officers.

Continue Reading

Business

Community council objections to Tenby Lidl store scheme

Published

on

PLANS for a new store on the edge of Tenby by retail giant Lidl, which has seen objections from the local community council, are likely to be heard next year.

In an application recently lodged with Pembrokeshire County Council back in October, Lidl GB Ltd, through agent CarneySweeney, seeks permission for a new 1,969sqm store on land at Park House Court, Narberth Road, New Hedges/Tenby, to the north of the Park Court Nursing Home.

The proposals for the latest specification Lidl store, which includes 103 parking spaces, would create 40 jobs, the applicants say.

The application follows draft proposals submitted in 2024 and public consultations on the scheme, with a leaflet drop delivered to 8,605 local properties; an information website, with online feedback form; and a public exhibition, held last December at the De Valence Pavillion in Tenby, with a follow-up community event held at New Hedges Village Hall, close to the site, publicised through an additional postcard issued to 2,060 properties.

Some 1,365 responses have been received, with 89 per cent of respondents expressing support for the proposals, the applicants say.

A supporting statement says: “Lidl is now exceptionally well established in the UK with the Company operating c.980 stores from sites and premises both within and outside town centres. Its market share continues to increase substantially, and the company is expanding its store network considerably. The UK operational model is based firmly on the success of Lidl’s operations abroad with more than 10,800 stores trading across Europe.

It adds: “The granting of planning permission for the erection of a new Lidl food store would increase the retail offer and boost the local economy.  The new Lidl food store would create up to 40 employment opportunities for people of all ages and backgrounds, providing opportunities for training and career development.  This in turn will create an upward spiral of economic benefits.”

Local community council St Mary Out Liberty Community Council has formally objected to the scheme, saying that, while it supports the scheme for a Lidl store in principle, recognising “the economic benefits a new retail store could bring,” it says the proposed location “is unsuitable, conflicts with planning policy, and cannot be supported in its current form”.

Its objections add: “The A478 is heavily congested in peak tourist months. A supermarket would worsen congestion, increase turning movements, and heighten risks to pedestrians, cyclists, and emergency access.”

It also raises concerns on the potential impact through “noise, lighting, traffic disturbance, and loss of quiet amenity” on a neighbouring residential care home.

An initial assessment by Pembrokeshire County Council, highlighted concerns about the visual impact, with the authority’s landscape officer commenting that the store would introduce “an intense urban function into an otherwise rural context”.

The report added: “It is not considered to be compatible with the character of the site and the area within which it is located; and furthermore, will lead to a harmful visual impact on the setting of the National Park.”

The application will be considered by county planners at a later date.

Continue Reading

Community58 minutes ago

Crowds line streets as tractor run hailed a festive success

CROWDS lined streets and pavements across Pembrokeshire on Saturday evening (Dec 20) as Clarbeston Road AFC’s illuminated Christmas tractor run...

Crime5 hours ago

Ex-Gwent police officer now living in Pembrokeshire cleared of corruption

A FORMER police officer from Pembrokeshire has been found not guilty of corruption following a trial at Cardiff Crown Court....

Business9 hours ago

Pembroke Dock restaurant to close on Christmas Day after £23,000 rates rise

A PEMBROKE DOCK restaurant owner has said she is “devastated” after being forced to close her business on Christmas Day...

Crime1 day ago

Milford Haven man denies child sex charges as trial date set

A MAN originally from Milford Haven has pleaded not guilty to a series of sexual offences involving a child after...

Crime2 days ago

Bail revoked for teenager charged with rape following Sands Nightclub allegation

A TEENAGER charged with rape following an alleged incident at a Saundersfoot nightclub has been remanded into custody after bail...

Crime2 days ago

Former police officer accused of making sexual remarks to women while on duty

Court hears allegations of inappropriate behaviour during official police visits A FORMER police officer has appeared in court accused of...

Community3 days ago

Community gathers to remember Corrina Baker

Lanterns and balloons released in emotional acts of remembrance FAMILY, friends and members of the local community came together to...

Crime3 days ago

Teenager charged following rape allegation at Saundersfoot nightclub

Incident reported at Sands Nightclub in early hours of Sunday DYFED-POWYS POLICE is investigating an allegation of rape following an...

Crime3 days ago

Milford Haven man jailed after drunken attack on partner and police officers

A MILFORD HAVEN man who launched a violent drunken assault on his partner before attacking two police officers has been...

Crime3 days ago

Court hears historic child sex abuse claim emerged after ‘tarot reading’

Judge reminds jurors there is no standard timeframe for victims to come forward as trial reaches final stage A JURY...

Popular This Week