Business

Delaying payments could cost jobs

Published

11 years ago

March 13, 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

Taxi fare shock in Milford Haven as drivers switch to meters

Published

48 minutes ago

March 24, 2026

Tom Sinclair

TAXI passengers in Milford Haven are facing a sudden jump in fares, as drivers increasingly switch on their meters and charge full council-approved rates.

One Herald reader said a short return trip from Milford Haven to Neyland cost £30 — around double what he expected to pay.

But drivers insist the prices are not new — they are simply the official tariff now being applied.

Under Pembrokeshire County Council rules, the standard daytime fare starts at £4 for the first mile (£5 after 6pm), rising by around £3 per mile thereafter. Waiting time is also charged, meaning even short return journeys can quickly add up.

Higher rates apply in the evenings, at weekends and on bank holidays.

End of the £3 taxi

Milford Haven has long been known for cheap taxis, with short in-town journeys often costing as little as £3 — far below official rates.

That was down to competition, older vehicles, and the need to keep prices low in a town where many rely on affordable transport.

Drivers say those days are now over.

One local driver told The Herald: “People got used to cheap fares, but that was never the real price. Now we have to use the meter or we’re losing money.”

Fuel costs biting

Most taxis run on diesel, now around 170p per litre locally. For drivers covering long distances each day, the increase has hit hard.

Global tensions in the Middle East have pushed up oil prices, feeding directly into higher fuel costs in the UK.

With fare increases requiring a lengthy council process, many drivers say they have no option but to charge the full tariff.

Vulnerable hit hardest

The change is being felt most by those who rely on taxis the most.

Elderly residents, people on low incomes and those without access to a car are now facing higher everyday travel costs.

There has been no recent increase in Pembrokeshire’s official taxi fares, which have remained broadly unchanged since 2022.

The difference is simple: drivers are now charging them.

As one put it: “We’re not putting prices up — we’re just finally charging what we’re supposed to be charging.”

Business

Cardiff Airport expects Easter passenger surge as demand rises

Published

3 hours ago

March 24, 2026

Tom Sinclair

CARDIFF AIRPORT is preparing for a busy Easter getaway, with more than 46,000 passengers expected to travel through the airport over the holiday period.

The figure represents an 18% increase compared to the same period last year, reflecting growing demand for both sunshine destinations and European city breaks.

The busiest routes this Easter are set to be Alicante, Dublin and Málaga, with flights operated by airlines including Ryanair, Vueling and TUI Airways.

Travellers heading for warmer weather can also take advantage of direct flights to the Canary Islands, including Tenerife, Lanzarote, Gran Canaria and Fuerteventura, alongside popular destinations such as Faro and Palma.

The airport says the increase builds on a strong start to 2026, with passenger numbers continuing to rise.

Chief executive Jon Bridge said the airport is approaching the one million passenger mark and expects the summer season to be its busiest since the pandemic.

He said: “It’s been an incredibly positive start to the year, and we’re looking forward to welcoming more passengers over the Easter period.

“Our teams are working hard to ensure travellers can start their holidays smoothly.”

Passengers travelling over Easter are being advised to allow extra time for their journey and check with airlines for the latest updates.

A total of 46,158 passengers are expected to pass through the airport between March 27 and April 12, with arrivals and departures almost evenly split.

Cardiff Airport said it continues to expand its range of destinations, including the addition of a direct service to Toronto, as it looks to strengthen its role in connecting Wales to international travel.

Business

New pilot vessel Llanion arrives at Milford Haven

Published

4 hours ago

March 24, 2026

Tom Sinclair

State-of-the-art 22-metre craft marks reset after £3.6m pilot boat controversy

THE PORT OF MILFORD HAVEN has taken delivery of a new 22-metre pilot vessel, marking a major investment in safety and operational capability on one of the UK’s busiest waterways.

The vessel, named Llanion, has arrived in Welsh waters following a successful delivery voyage from the Netherlands, where it was built by Next Generation Shipyards.

Designed specifically for pilotage operations, the new craft features a modern hull design, self-righting capability, and advanced safety systems, enabling it to operate in challenging conditions while supporting the safe movement of vessels across the Milford Haven Waterway.

Its arrival effectively brings to a close a long-running saga surrounding a previous generation of pilot boats built locally in Pembrokeshire at a reported cost of around £3.6 million. The Pembrokeshire Herald previously reported extensively on the issue, including a front-page story highlighting concerns about the vessels’ performance and suitability for operational use.

Those vessels were later withdrawn from frontline service following safety concerns raised by crews.

Since taking over as Chief Executive, Tom Sawyer has overseen a shift in direction at the Port, with a stronger emphasis on operational reliability, safety and long-term performance. The commissioning of Llanion is widely seen as part of that reset, addressing issues that had affected confidence in the pilot fleet.

Tom Sawyer said: “This project is a testament to collaboration and innovation. Working closely with our partners and our own technical teams, we now have a vessel that reflects the highest standards of design, safety and operational capability.

“Llanion will play a key role in supporting the safe and reliable movement of vessels on the Milford Haven Waterway for years to come.”

The new vessel is the result of a five-year collaboration between the Port of Milford Haven, naval architects BMT, Camarc Design and the Dutch shipyard, with Port teams closely involved throughout.

Dirk Keizer, Technical Director at Next Generation Shipyards, said the company was “extremely proud” to deliver the vessel, adding that it “excels in safety, performance and reliability.”

Ed Soothill, Technical Director at Camarc Design, said it was “wonderful to see Llanion arriving in Milford Haven,” while Steven Lee, Chief Naval Architect at BMT, described the vessel as “the Port’s next generation pilot boat.”

The Port of Milford Haven is the UK’s largest energy port and a key economic driver in Pembrokeshire, supporting thousands of jobs and handling a significant share of Britain’s oil and gas imports.