Business
Delaying payments could cost jobs

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
Old Pembrokeshire coastguard’s cottage ideal for those on lookout for coastal retreat

AN IDYLLIC former coastguard ‘s cottage in a tiny Pembrokeshire village could prove to be ideal for someone on the lookout for a coastal bolthole.
The cosy cottage, nestled at the heart of historic Bosherston, with its parish church dating from the 1200’s, is in the world-renowned Pembrokeshire National Park.
The village is close to the National Trust’s tranquil Bosherston Lily Ponds, three flooded limestone valleys resplendent with the colour and heady scent of lilies in June and teeming with a multitude of wildlife all year round.

The area near the village is renowned as a centre for intrepid rock climbing pursuits on challenging nearby sheer coastal crags.
Angie Davey, of Paul Fosh Auctions who are selling the singular property, said: “The Haven is a gorgeous cottage in one of the prettiest parts of Pembrokeshire. The former coastguard’s cottage does need refurbishment and updating but once complete could make an ideal coastal retreat or holiday home.
“The property currently provides a lounge, kitchen area and three bedrooms also has an outbuilding at the rear which was previously been used as an office. It has two store rooms, a toilet and office area.

“The historic building has planning for a new access, an extension, a loft conversion and alterations to the property.
“Situated within the Pembrokeshire Coast National Park as well as being close to Bosherston Lily Ponds it is also near to the awesome Broad Haven Beach and contemplative St Govan’s Chapel.
“The cottage’s lawned grounds are enclosed by a wall and fencing. Given the tourism in the area the property could be developed into lucrative holiday rental.
“Bosherston is a tiny village just five miles south of the county town of Pembroke. Two miles to the south of Bosherston, nestled within the steep cliffs is St Govan’s Chapel. It is free to visit, although the only access is down steep steps carved into the side of the cliff. Barafundle Bay is just around the corner and there is a wealth of other sandy beaches and glorious coastal paths and walks, nearby

“Complete with period fireplace and cooking range, Haven is listed for sale with a guide price of £149,000.”
The coastguard’s cottage, together with some ninety other varied lots, will be offered for sale at Paul Fosh Auctions online starting at 12 noon on Thursday April 15 and ending from 5pm on Thursday, April 17.
Picture caption: Bolthole: This cute, former Pembrokeshire coastguard’s cottage is being sold by Paul Fosh Auctions with a guide price of £149,000.
Business
Pembrokeshire Council rules out ‘toxic tourism tax’ – for now

VISITORS to Pembrokeshire will not face a new overnight tourism tax—at least not during the current county council administration.

As the Welsh Government’s controversial Visitor Accommodation (Register and Levy) (Wales) Bill passed its first stage in the Senedd this week, Pembrokeshire County Council has moved quickly to reassure local businesses that it has no plans to introduce the charge locally.
In a statement issued on Tuesday (Apr 1), Cllr Paul Miller, Deputy Leader and Cabinet Member for Place, the Region and Climate Change, said:
“We acknowledge it’s important to recognise there’s balance to be struck between supporting the industry and dealing with some of the challenges associated with peaks in season. Therefore, I’m confirming it’s not our intention to take forward the option of a visitor levy in Pembrokeshire during this administration.”
His comments will come as a relief to the county’s hospitality sector, which has expressed growing concern about the impact of a new per-night charge on tourists. Under the Welsh Government’s plans, local councils would be able to impose a charge of at least £1.25 per person, per night for hotel stays, or 75p for campsites and hostels.
Although the charge would be optional, businesses feared that pressure to raise local revenue could lead to its adoption across Wales—deterring visitors and adding to the already high cost of domestic holidays.
Council backs tourism, acknowledges challenges
Cllr Miller stressed the importance of the sector to the local economy, saying:
“We provide a fantastic tourism offer here in Pembrokeshire and it is an important part of the county’s economy.
“In addition to jobs, this administration’s approach is also about the year-round facilities and attractions that benefit local people too. We recognise the tourism landscape has experienced significant change, be that second homes legislation, tax changes and we’re aiming to provide some certainty to the industry.”
He added that like many in the sector, he was “looking forward to a great summer season” in Pembrokeshire.
‘Toxic tax’ under fire in Senedd
The announcement from County Hall came as the Welsh Conservatives renewed their calls to scrap the proposed legislation, branding it a “toxic tourism tax”.
Sam Rowlands MS, Welsh Conservative Shadow Cabinet Secretary for Finance, said the levy would “hit the poorest families the hardest” and was being introduced at a time when energy, water, and council tax bills were already rising.
Welsh Conservative leader Darren Millar MS accused the Labour-run Welsh Government of “hiding from scrutiny” and said: “Welsh Labour has chosen to add to rising costs for families by creating a toxic tourism tax on domestic holidays. Welsh Conservatives are clear: to fix Wales, we must axe the tax.”
The Bill will now progress to further scrutiny stages in the Senedd, with more votes due later this year.
While councils like Pembrokeshire will retain the power to decide whether to adopt the levy or not, the legislation could still reshape how tourism is funded and managed across Wales in the years to come.
Business
Welsh Government’s tourism tax plans move closer with rates set to rise

PLANS to bring in a tourism tax cleared the first hurdle in the Senedd, with the Welsh Government set to raise the rate to £1.30 per night per person.
Senedd members voted in favour of the tourism tax bill following a debate on April 1 during which ministers announced plans to raise the rates to create an exemption for children.
If the bill completes its passage through the Welsh Parliament, £1.30 per person before VAT could be charged on overnight stays in hotels, B&Bs and self-catering accommodation.
An estimated £264m would be raised if all councils chose to introduce the levy in the decade to 2035, against total costs of £313m to £576m, according to an impact assessment.
Mark Drakeford led the “stage-one” debate on the general principles of the bill, which would also establish a mandatory register of visitor accommodation providers.
Pointing out that visitor levies are common across the world, the finance secretary stressed councils would have an option rather than an obligation to bring in a levy.
The former first minister argued the levy – which he said would cost less than a sausage roll – will be simple, straightforward and fair, with lower rates than in comparable destinations.
On calls for children to be exempt, Prof Drakeford said an amendment would exempt under-18s from the lower band, with the rates each rising by 5p from £1.25 and 75p.
“I must emphasise that any reduction in the broad base of the levy has to be made up by higher charges on those visits that remain in scope,” he said.
He told the Senedd a power for councils to charge a premium on the rates will be retained.
The Conservatives’ Sam Rowlands warned that tourism providers are deeply concerned about the proposed tax, with the sector accounting for around one in eight jobs.
The shadow finance secretary said the Welsh economy can ill afford an annual £47.5m hit, urging ministers to “axe the tax” and opposing the “assault” on the tourism sector.
Mr Rowlands stressed that already under-pressure tourism providers pay into the system through VAT, national insurance, corporation tax and business rates.
While welcoming moves to exempt children from the lower rate, the former council leader raised concerns about education and voluntary organisations being hit by the tax.
His colleague Janet Finch-Saunders described the tax plans as disgusting. “Shame on you,” she said, accusing members on other benches of letting tourism businesses down.
She warned Wales could become a “no-go area” with tourists deterred by the tax, voicing concerns about projected costs of up to £576m over the next decade.
The tourism tax bill was introduced as part of the Welsh Government’s co-operation agreement with Plaid Cymru between 2021 and 2024.
Luke Fletcher, the party’s shadow economy secretary, said: “The reality is that the current way in which we do tourism isn’t sustainable in the long term.”
Pointing to a tourism tax introduced in Manchester in 2023, he told the Senedd: “Wales isn’t acting in isolation here but is moving in step with places both in and outside of the UK.”
His Plaid Cymru colleague Siân Gwenllian argued raising a small levy would improve the visitor experience and services for people living in an area all year round.
Senedd members voted 40-15 in favour of the bill, with one abstention.
The bill now moves to stage two, detailed amendments in the finance committee, before a further amending stage in the Senedd chamber and a stage-four vote on the final version.
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