ANDY BURNHAM’S first week as the UK’s Prime Minister has brought changes to VAT on domestic energy bills, business rates for pubs and a cap on bus fares. Yet due to the devolution of powers, many of these changes do not reach Wales, leading to calls for the Welsh Government to follow suit.

When Burnham walked into Downing Street on Monday, he began a steady stream of policy announcements that lasted throughout the week. He began Tuesday by announcing that VAT would be scrapped on people’s energy bills, going from 5% to 0% from October onwards. This is estimated to save £45 for households annually. The new Prime Minister said that this would help to ‘put more money in people’s pockets and bring back hope.’

This was followed by an announcement on Wednesday that single bus tickets in England will be capped at £2 from January 2027. In a statement to Parliament that same day announcing the plans, Rail Minister Lord Hendy said that this was part of the government’s commitment ‘to ensuring that buses remain affordable, reliable and accessible.’

Business rates for pubs, clubs and live music venues were also slashed by 20% on Thursday, being estimated to save the average pub over £1,000 next year. However, at a time when almost two pubs are closing a day in the UK, these changes will not be introduced until April next year.

The message is clearly one of affordability for this new government. ‘Growth in every postcode’ is what Burnham pledged this week, aiming to provide room for families to deal with the cost of living and prosper.

Will this help the people of Wales?

But does this really help the people of Wales struggling with the affordability crisis?

First of all, the plans themselves have received criticism from opposition parties and even within the Labour party itself. Conservative Leader Kemi Badenoch simultaneously criticised the plans for not going far enough whilst also warning that these expensive policies will lead to a rise in taxes. The cut in VAT is only estimated to save a household £45 a year, which Badenoch criticised for not being sufficient to tackle the scale of the affordability crisis.

Darren Jones, a close Keir Starmer ally, also criticised the funding of the VAT cut since the Digital ID scheme that was cut to fund it was not actually fully funded.

Hitting back at this, the UK Government has stated that the policies are fully funded. They maintain that the VAT cut will be funded by scrapping the previous Starmer government’s Digital ID scheme, generating an estimated £1.8 billion, whilst the £2 bus cap will be funded through reorganising the foreign aid system.

The cut in VAT to energy bills will also directly apply to the people of Wales. This is because the UK Government sets VAT rates across the whole of the UK.

But a lot of the other measures that Burnham announced this week come under the powers of the Welsh Senedd and not the UK Government. Business rates and bus fare caps are in the hands of Cardiff Bay rather than Westminster. Therefore, they only apply to England.

This has led to Reform UK and Welsh Labour both calling separately for the Welsh Government to follow Burnham and introduce a bus fare cap. The Welsh Conservatives had previously called on the former Welsh Labour Government to implement an immediate £2 bus fare cap. Whilst caps do already exist in Wales for 5-21 year olds and over 65s receive free bus travel, a universal £2 bus cap does not exist.

Nor, does it currently appear likely to be adopted. The Plaid Cymru Government maintained its position that ‘Wales is leading the way on affordable accessible transport,’ whilst not mentioning implementing a cap when questioned on the matter.

The Director of CAMRA Wales, a leading consumer organisation for British pubs, also urged the Welsh Government to match Burnham’s 20% business rate cut. In a statement, they said ‘pubgoers are crying out for the First Minister and Welsh Government to match the new Prime Minister’s pro-pub stance and to protect and promote our pubs as vital community hubs.’

Pubs and other food and drink hospitality businesses do already receive a 15% business rate relief scheme in Wales. However, Burnham’s plan exceeds this with an extra 5% cut, raising the question of whether the Welsh Government will match this or not.

The future of devolution

This kind of fragmentation across the UK looks set to increase as another central tenet of the Burnham government appears to be greater devolution of power away from Westminster to the regions of the UK. Whilst the specifics of this have yet to be established, Burnham spent the first Friday of his premiership working in the new Number 10 North in Manchester. This set the tone for an administration that seeks to give the regions of the UK more power to make decisions for themselves, meaning that these kinds of regional differences we have seen between Wales and the rest of the country could only increase.

Whilst Burnham’s plan for Wales is yet to be defined, the new Secretary of State for Wales, Stephen Kinnock, stated on Wednesday that he was ‘not entirely convinced’ of the Plaid government’s request for new powers over policing, justice, rail and the Crown Estate. However, given Burnham’s pro-devolution agenda and the Plaid Cymru government’s request for more devolved powers, they will likely be able to find common ground.

The Plaid Cymru First Minister, Rhun ap Iorwerth, met Burnham in Glasgow on Thursday for the opening ceremony of the 2026 Commonwealth Games. Speaking afterwards, Iorwerth struck a cautiously optimistic tone. He said that it was ‘too early’ to know what approach Burnham would take to granting Wales more powers, but did state that Burnham is ‘serious about having those conversations’ in ‘a positive and open spirit.’

As Burnham’s first week draws to a close, many of the changes he has introduced will not make it to Wales. Yet as Burnham and Iorwerth met this week to discuss what the future for Wales might look like, there is potential for agreement to be reached. We are only one week into what Burnham promised on Monday was a ‘ten year plan’ for the UK. There is therefore lots of space for the position of Wales and the power it holds to radically transform in the coming months.

Claire Archibald says Welsh firms are being placed at a disadvantage, with full relief ending at half the rateable value permitted in England

A REFORM UK Senedd Member has called on the Welsh Government to review the level at which small businesses in Wales qualify for full business rates relief.

Claire Archibald, who represents Ceredigion Penfro, wants ministers to consider increasing the threshold for 100 per cent Small Business Rates Relief from a rateable value of £6,000 to a figure closer to the £12,000 threshold operating in England.

Under the Welsh system, eligible premises with a rateable value of up to £6,000 receive full relief and pay no business rates. Relief is then reduced gradually for properties valued between £6,001 and £12,000.

In England, an eligible business occupying a single property with a rateable value of £12,000 or less can receive full relief. Support is tapered for properties valued between £12,001 and £15,000.

Ms Archibald said the difference meant some small Welsh businesses faced bills at an earlier stage in their development than comparable firms across the border.

She raised the issue after meeting businesses and exhibitors at the Royal Welsh Show, where owners discussed the challenges facing rural enterprises.

Ms Archibald said: “The difference between the Small Business Rates Relief thresholds in Wales and England places many Welsh businesses at a clear disadvantage.

“For growing businesses, particularly in rural areas such as Pembrokeshire and Ceredigion, losing financial support at a crucial stage of development can have a significant impact on their ability to invest, expand and create new jobs.

“I have spoken to a number of local businesses at the Royal Welsh Show, and these are exactly the kinds of enterprises we should be supporting.

“They are innovative, ambitious and make a valuable contribution to our economy. We need to ensure that our business rates system encourages growth rather than creating additional barriers.”

Business rates policy is devolved, meaning the level and structure of Small Business Rates Relief in Wales are matters for the Welsh Government rather than the UK Government.

Welsh ministers have powers to make regulations governing how non-domestic rates and reliefs operate in Wales. Local authorities calculate bills, collect payments and administer the relief, while the Valuation Office Agency determines the rateable value of individual properties.

Ms Archibald said increasing the threshold could allow small businesses to retain more money for recruitment, equipment, increased production and the development of new products.

She said: “Every pound that remains within a local business is a pound that can be reinvested into our communities.

“Supporting small businesses means supporting local jobs, economic growth and the long-term sustainability of our towns and villages.

“As policymakers look at ways to strengthen local economies and create opportunities across Wales, there is a strong case for reviewing the current threshold.

“Small businesses are the backbone of our communities and deserve a rates system that recognises their value, rewards growth and helps them move from surviving to thriving.”

The Welsh Government has previously highlighted the cost of its business rates relief schemes, saying its permanent reliefs are worth around £250 million annually.

It also introduced a wider £116 million support package following the 2026 revaluation, including transitional protection for businesses facing significant increases in their bills and a lower multiplier for eligible small and medium-sized retail properties.

Increasing the Small Business Rates Relief threshold would therefore involve a financial decision for ministers. Business rates raised in Wales are pooled by the Welsh Government and redistributed to councils to help fund local services, meaning more generous relief would either reduce the amount collected or require the lost income to be replaced from elsewhere in the Welsh budget.

Ms Archibald is now urging ministers to examine whether the Welsh threshold should be brought more closely into line with England.

EXPLAINER: Who controls business rates in Wales?

Are business rates set by Westminster?

Not in Wales. Non-domestic rates, commonly known as business rates, are devolved.

The UK Government controls the business rates system in England, while the Welsh Government is responsible for policy in Wales. Business rates policy has been devolved since 1999, with full financial responsibility transferred to the Welsh Government in April 2015.

Could the Welsh Government increase the threshold?

Yes. Welsh ministers can change the rules governing Small Business Rates Relief in Wales through legislation approved under the Welsh system.

The permanent Welsh relief scheme is currently set out in the Non-Domestic Rating (Small Business Relief) (Wales) Order 2017, as subsequently amended.

What support do Welsh businesses receive now?

Eligible premises with a rateable value:

• of £6,000 or less receive 100 per cent relief;
• between £6,001 and £12,000 receive tapered relief;
• above £12,000 do not normally receive Small Business Rates Relief.

Eligibility is generally limited to two properties per business within each Welsh local authority area, although separate arrangements apply to some post offices and registered childcare premises.

How is England different?

In England, qualifying businesses occupying a single property can receive:

• 100 per cent relief where the rateable value is £12,000 or less;
• tapered relief between £12,001 and £15,000.

The schemes are not identical, so the comparison is not simply that Welsh businesses receive nothing above £6,000. Welsh relief continues above that level, but it begins to reduce much earlier than in England.

Who sends the bill?

Local councils administer business rates, send bills and apply the relevant relief.

The rateable value itself is assessed independently by the Valuation Office Agency, while the multiplier and national Welsh relief policies are determined by the Welsh Government.

What would increasing the threshold cost?

The exact cost would depend on the new threshold, the number of qualifying properties and whether the tapered part of the scheme was also changed.

Because business rates income is used to support council services across Wales, ministers would need to accept a reduction in revenue, find savings elsewhere or provide replacement funding.

PLANS for an outdoor sauna by Tenby’s North Beach have been submitted to Pembrokeshire’s national park.

In an application to Pembrokeshire Coast National Park, Tenby-based David Jones, seeks permission for the siting of a mobile sauna unit on a raised concrete hard-standing area above the breakwater wall and slipway at the far north end corner of North Beach, Tenby.

It would be situated below the Park Hotel, North Cliff, the site in private ownership as part of the Park Hotel estate.

A supporting statement accompanying the application says the site has most recently been used as the base for a paddleboard tour and rental business, and has also been utilised to store watercraft and recreational beach equipment.

Of the scheme itself, it says: “We aim to provide a close to nature sauna experience and in so doing make sauna culture’s physical, mental, and social health benefits accessible to the local community and its visiting guests.

“We aim to operate a year-round service that offers an immersive and nuanced experience that only nature and the changing seasons can provide. We aim to provide a sauna service set within a natural setting with direct access for sea bathing as an integral part of the sauna experience. We aim to provide an experience with a low environmental impact and high physical, mental and social gains.”

It adds: “The sauna and changing room will be separate mobile units. This provides practical advantages for siting and maintenance but also as a design strategy to provide a sense of impermanence, transience and movement sympathetic to its natural setting and unique location.

“The sauna unit will feature a wood fired sauna stove, a large glazed picture window and low level LED internal mood lighting reinforcing design principles based on creating low environmental impact and an atmosphere that reaches for a sense of the elemental.

“Externally both units will feature black metal profile roofing, black timber cladding and double glazed windows. A glazed picture window to the east elevation of the sauna unit will take in the impressive town and sea vista.”

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

Recently, a previously temporary grant of an outdoor sauna at Saundersfoot’s harbour was refused a permanent location by Park planners.

Back in June 2024, a temporary two-year permission for a mobile wood-fired sauna at overlooking the sea at Saundersfoot harbour was granted by Pembrokeshire Coast National Park’s development management committee.

Since then, a further application by Kerry Evans of Hwyl Outdoor Sauna to make the siting permanent was submitted to national park planners, which was refused following an officer recommendation at the July committee meeting.

While planners expressed their regret at the refusal of that scheme, one of the issues based on location, they hoped a compromise may be reached with another location in the harbour area.

Kerry Evans has previously stated she is considering appealing the decision on that scheme, which had gained huge local support as well as an online appeal calling for the refusal to be overturned, to Planning and Environment Decisions Wales (PEDW).