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Delaying payments could cost jobs

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paymentsA 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.

 

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Business

Plans for Ireland-UK fibreoptic cables to be connected at Pembrokeshire

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PLANS by a Vodafone phone company subsidiary to bring fibreoptic cables across the sea from Ireland to a Pembrokeshire seaside beach village in order to improve broadband coverage have been lodged.

In an application to Pembrokeshire Coast National Park, Apollo Submarine Cable Systems limited, through agent APEM Group, seeks permission for the construction of four underground telecom chambers and interconnecting ducts, along with Horizontal Directional Drilling (HDD) underneath Brandy Brook, Newgale, and the construction of one HDD bore-to-sea outfall.

A supporting statement accompanying the application says the scheme would form the onshore part of a project to bring a fibreoptic cable onshore from Kilmore Quay, Wexford, Ireland to a site at Newsurf Shop car park, Sands Café Car Park and Duke of Edinburgh Inn, Newgale.

It says the majority of the project is subterranean, with very minor above ground works are proposed, which comprise the installation of a manhole cover.

It adds: “To facilitate improved internet connectivity, the applicant is proposing the installation of a fibreoptic telecoms cable (the Beaufort cable) from Kilmore Quay, Wexford, Ireland to Newgale.

“The project is to facilitate the installation of the Beaufort cable, as it comes ashore in Wales and to link it into the wider network, which will be operated by Vodafone’s wholly-owned subsidiary Apollo Cable System Limited in the UK.”

It says the project would see three underground telecom chambers and a 120-metre interconnecting duct, the 87-metre HDD underneath Brandy Brook, launching from the receiver pit located within the Site, along with the construction of one HDD bore-to-sea outfall, in a subtidal area of Newgale bay, of approximately 920 metres, and one underground telecom chamber and interconnecting duct.

Citing a report on digital connectivity, it says 5G geographic coverage has seen improvements but is still relatively low at 57 per cent of Wales’ landmass, with 4G the primary service.

That report says there is a difference in full fibre coverage between urban and rural areas (83 per cent versus 59 per cent) and highlighting a need for further coverage.

On the scheme itself, the statement says short-term noise and disruption to local residents “is anticipated during the construction phase however this will be limited to 57 days,” adding: “The proposed drilling operations are not to be continuous and will be limited to approximately 20 minutes in each hour,” the works in total expected to last 91 days after which land will return to its former use without restrictions.

It goes on to say: “The HDD is specifically designed to mitigate the risk of any shoreward movement of the shingle bank and beach level changes. The use of HDD reduces the likelihood of potential environmental impact on the landscape and seascape.

“The project is not anticipated to interact with Brandy Brook. All drilling works will take place within excavated launch pits and all construction works will be confined to the hardstanding of the car park.”

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

 

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Call for Hildebrand to become short-term lets to reflect changing tourism environment

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A CALL to allow a Pembrokeshire seaside hotel to become short-term holiday let accommodation to ensure its long-term viability in a changing tourism sector has been submitted to the national park.

In an application to Pembrokeshire Coast National Park, Abergavenny-based Kyle Williams, seeks permission for a change of use of The Hildebrand Hotel, 29 Victoria Street, just off Tenby’s Esplanade seafront, from a traditional hotel to a short-term holiday letting operation.

A supporting statement accompanying the application says the scheme seeks to “secure the continued viable use of the property through its operation as professionally managed holiday accommodation, providing high-quality visitor accommodation within the established tourism destination of Tenby”.

It adds: “The Hildebrand Hotel is an established visitor accommodation property located within Tenby, Pembrokeshire, one of Wales’ premier coastal tourism destinations. The property has historically operated as hotel accommodation and occupies a sustainable location within walking distance of local services, beaches, restaurants, public transport facilities and tourism attractions.

“The building is well suited to visitor accommodation use and benefits from existing infrastructure, guest facilities and accommodation layouts that support continued tourism-related occupation.”

It says no significant external alterations are proposed, adding the “character, appearance and scale of the building will remain unchanged”.

“The accommodation will be let on a short-term basis to visitors and tourists, supporting the local visitor economy whilst ensuring the building remains occupied, maintained and economically viable.”

It adds: “The proposed use will ensure the continued occupation and maintenance of the building. The hospitality sector has experienced significant operational challenges in recent years, including staffing pressures, increasing energy costs and changing visitor preferences. The proposed use offers a flexible operational model capable of maintaining the long-term viability of the property.”

It concludes: “The proposal will retain the building within the tourism sector, support the local economy, preserve the ongoing use of an established visitor accommodation property and ensure the long-term viability of the site.

“No significant external alterations are proposed, and the development is not expected to result in unacceptable impacts upon neighbouring amenity, highway safety or the character of the area.”

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

 

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Business

Expansion of facilities at award-winning Cresselly Arms approved

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PLANS to expand facilities at a popular beauty spot award-winning Pembrokeshire pub, in part using a former public toilet, have been approved.

In an application to Pembrokeshire Coast National Park, Lloyd James C/O Owen & Owen Ltd for Cresselly Estate, through agent Hayston Developments & Planning Ltd, sought permission to upgrade an existing food outlet with the conversion and extension of a former public toilet block to a bespoke kitchen, store and staff toilet, new covered seating area and external bar container unit and associated works, at The Cresselly Arms, Cresswell Quay.

The Grade-II-listed Cresselly Arms originated as an 18th-century dwelling and was a public house by at least the mid-19th century.

In more recent years, the pub under landlord Steve Adams won the CAMRA (Campaign for Real Ale) pub of the year award for the whole of Wales in 2024, having previously been named the best in Pembrokeshire.

A supporting statement said the former toilet block closed some two years ago and is now in the applicant’s ownership, having previously been leased by the county council; the toilet closing after fears of a leaking ‘sealed’ cesspit.

It says nearby listed building the Cresselly Arms “has been purveying a variety of drinks for over 200 years together with a limited range of snacks,” adding: “Whilst the number of customers will have varied over the years, at times when the local Hunt meets at the Cresselly Arms large crowds and their vehicles congregate in the area.”

It went on to say: “Over recent years the Inn has stationed mobile units associated with the preparation and enjoyment of food within its curtilage and this proposal is to improve the quality of the presentation of food and refreshments, including making use of the redundant toilet block to the north.”

It added: “Whilst the proposal would introduce new uses onto the site it is considered that these activities are ancillary to the operation of the long established Cresselly Arms and for the most part take place within the curtilage of the inn.”

The application was supported by local community council Jeffreyston, but it noted concerns regarding parking arrangements and the potential for increased vehicle movements, with one member for the public raising concerns about “fast food outlets in a historical area of natural beauty”.

An officer report recommending approval said: “Revisions to some detailed elements of the scheme have been received during the course of the application. The amended proposal is considered to represent a sympathetic enhancement of an established hospitality business which supports the visitor economy whilst respecting the historic character and appearance of Cresswell Quay.”

It said the pub had historically seen temporary barbecue and catering facilities occupying the quay area, the proposal seeking to “rationalise and formalise these activities within the established ancillary yard associated with the Cresselly Arms,” adding: “In heritage and placemaking terms this is considered a positive outcome.”

It went on to say, on highways issues, the proposal sought to improve facilities rather “than significantly expand its capacity or introduce a new use,” and was not considered it would “generate a level of traffic that would result in a severe impact on the local highway network or existing parking arrangements.”

The application was conditionally approved by park planners.

 

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