Business
Unprecedented inflation grips UK households in 2023
CONSUMERS grappled with the most severe inflationary pressures in a generation throughout 2023, significantly impacting household budgets and causing widespread distress.
In March, food inflation surged to a staggering 19.6%, marking a more than 45-year high. While the pace of price increases has moderated, prices still persist at 9% above the previous year’s levels.
Sue Davies, Head of Food Policy at Which?, remarked, “The year 2023 witnessed the worst inflation in a generation. Despite a slowdown in the rate of price escalation, many find food prices still prohibitively high. Essential items may never revert to pre-cost-of-living crisis prices.”
Although some relief is noted in the reduced cost of butters and spreads compared to the previous year, everyday essentials may not witness a return to their pre-crisis affordability. Davies urged supermarkets to support struggling consumers by ensuring affordable food remains accessible in smaller branches.
Likewise, households endured another year of energy bill challenges as the pandemic’s lingering effects and Russia’s invasion of Ukraine exposed the UK’s vulnerability to the volatile wholesale market.
The year began with Ofgem’s energy price cap soaring to over £4,000 annually for the average household. However, the government’s energy price guarantee capped bills at an average of £2,500, supplemented by a £400 relief. While bills have since decreased, the price cap will rise to just over £1,900 from January 1, still notably higher than pre-crisis levels.
Headline inflation has receded sharply, hitting its lowest level in over two years last month, reinforcing predictions for the Bank of England to initiate interest rate cuts in early 2024. Official figures revealed falling fuel prices and reduced food inflation contributed to the Consumer Prices Index (CPI) dropping to 3.9% in November from 4.6% in October.
Despite the decline, the Bank cautions against premature celebrations, emphasizing the ongoing challenge of bringing inflation back to its 2% target. The situation remains fluid, with the potential for rapid changes based on fuel price spikes or significant wage growth.
There’s a suggestion that headline inflation might increase early in the new year as the CPI basket is re-weighted and the household energy price cap increases by 5% from January 1.
Balwinder Dhoot, Director of Sustainability and Growth at the Food and Drink Federation, highlighted that while agricultural commodity prices are generally falling, they remain 21% higher than pre-pandemic levels. Factors like the recent navigation turmoil in the Red Sea are expected to add to inflationary pressures on the sector.
Andrew Goodacre, Chief Executive of the British Independent Retailers Association (Bira), anticipates 2024 to be another challenging period amid prevailing economic pessimism. Stability is crucial for economic recovery, with consumer confidence playing a pivotal role. Goodacre emphasized the potential for instability in the event of a general election.
Looking ahead, Jack Meaning, Chief UK Economist at Barclays, expects 2024 to be a challenging transition year. He anticipates the Bank of England easing interest rates from mid-year, providing some relief to those affected by the cost-of-living crisis. Meaning concluded, “2024 will be a year of transition, from headwinds to tailwinds, but come next December we should be able to toast the new year with more festive spirit.”
Business
Pembrokeshire St Davids family-friendly coffee bar plans
PLANS to change a former hairdressing salon in Pembrokeshire’s only city to a family-friendly coffee bar have been submitted to the national park.
In an application to Pembrokeshire Coast National Park, Gerallt Nash seeks permission for a change of use of 26 High Street, St Davids from a hairdressing salon to a family friendly coffee bar and children’s playroom.
The First floor, formerly used as accommodation of a tenant, would be used as an office and storage of business.
A supporting statement says: “It is proposed to open a family-friendly coffee bar with a children’s playroom on ground floor. It is not intended to cook food on the premises, therefore there will be no requirement for an extractor system.
“ Other than small scale repairs to part of one floor, and the installation of a sink and serving counter in the inner room (plumbing and electrics are already in place since its last use as a salon) the main work will be the redecoration of surfaces and ceilings, the provision of new light fittings and laying of new floor coverings.
“This part of High Street has been identified as a ‘commercial’ zone by PCNPA. Existing businesses close to No 26 include outdoor and surfing outlets; restaurants; clothes shops; holiday accommodation; ice cream parlour; fish and chips outlet; delicatessen and craft shops.
“The current proposal would fill a gap in the market, as most food outlets do not open until after 11am or 12pm, or only during the evenings in some cases. It would also provide somewhere for [young] families to go to unwind whilst their children can relax in the playroom.”
It says No 26, also known as ‘Preswylfa,’ was “part of a row of three shops (with dwelling accommodation above), built and owned by Thomas Evans of Solva probably during the late 1870s,” one “leased, and later purchased, by the applicant’s great grandfather, David Evans, who owned the local windmill”.
Detailing No 26’s history, it says: “Over the years, it has served as a grocery shop, veterinary surgery (before the current building at the rear of the property), café, and hairdressing salon (on at least three different occasions).
“Mrs Susan Bennett, who ran ‘Susan’s Hairdresser’ at No. 26, retired on 1 November 2024. Since then, the exterior of the property has been repainted. A new tenant, Keeley Rose, took over the lease on December 1, 2025.”
The application will be considered by park planners at a later date.
Business
Fishguard to Wexford rail tunnel plan backed by Elon Musk firm
Six-hour London to Dublin service proposed in £32bn project ahead of Senedd election
PLANS for a rail tunnel linking west Wales directly to Ireland have emerged, with a company owned by tech billionaire Elon Musk said to be involved in early-stage discussions.
The proposed fixed link would connect Fishguard with Wexford, creating the first direct rail connection between the UK and Ireland.
Sources indicate that The Boring Company has been exploring the feasibility of constructing the tunnel, which could form part of a wider transport corridor linking London and Dublin.

Six-hour London to Dublin service
Under the plans, an express rail service could run directly from London to Dublin in around six hours, significantly reducing current journey times and removing the need for ferry crossings.
Passengers would travel via south Wales before entering the tunnel beneath the Irish Sea, with vehicles transported on specialised rail carriers similar to those used on the Channel Tunnel.
One source familiar with the discussions said: “This would be a game-changer for connectivity between Britain and Ireland. It’s being looked at very seriously.”
£32bn project backed by private investment
The project is expected to cost in the region of £32 billion, with the bulk of funding understood to come from private sector investors.
Sources suggest that both the Welsh Government and Irish authorities would support the scheme through planning, facilitation and long-term guarantees, but that no direct funding has been committed by Westminster.
Insiders say the decision reflects ongoing pressure on UK public finances following the spiralling cost of High Speed 2.

HS2 ‘owes Wales’ debate reignited
The proposal is also expected to reignite debate over whether Wales should have received additional funding as a result of HS2.
Critics have long argued that the classification of the project as an “England and Wales” scheme has denied Wales billions of pounds in consequential funding through the Barnett formula.
One political source told The Herald: “There is a growing view that HS2 effectively owes Wales a major infrastructure investment of its own.”
Election timing questioned
It is understood that the Welsh Government has brought forward the proposal just weeks ahead of the Senedd elections, in what some insiders believe is an attempt to boost support.
With First Minister Eluned Morgan facing a challenging political landscape, sources suggest the announcement of a bold, high-profile infrastructure project could help shift momentum ahead of polling day.
One insider said: “This is exactly the kind of big, attention-grabbing policy that can change the narrative during an election campaign.”
However, the concept of a fixed link between south Wales and Ireland is not new. A 2004 report by the Institution of Engineers of Ireland outlined a “Tuskar route” linking Fishguard and Rosslare via a tunnel beneath the Irish Sea. The proposal, which formed part of a wider long-term transport vision for Ireland, suggested a crossing of around 45 miles (72km) — broadly comparable in scale to the current plans under discussion.
Ferry firms raise concerns
Operators running services from Fishguard Harbour have reacted with concern, warning the plans could have a major impact on existing ferry routes.
An industry source said: “If this goes ahead, it would fundamentally change travel patterns. Ferry services could struggle to compete.”
Questions over Cardiff Airport links
The proposal is also likely to raise questions about the future of existing air routes between Wales and Ireland, particularly those operating from Cardiff Airport to Dublin.
With the Welsh Government owning and subsidising the airport, critics say a high-speed rail alternative could put pressure on passenger numbers.
One observer said: “If you suddenly have a direct six-hour rail service city-to-city, it inevitably puts pressure on short-haul flights.”
Economic boost for west Wales
Supporters of the scheme argue that, if delivered, the project could provide a major long-term economic boost to west Wales, improving connectivity, increasing tourism, and strengthening trade links.
The Herald understands that early projections suggest the scheme could bring significant investment and job creation to Pembrokeshire during both construction and operation.
However, key details — including environmental impact, construction timelines and final funding arrangements — have yet to be confirmed.
A fixed link between south Wales and Ireland has been discussed in various forms for decades, but has never progressed beyond early-stage proposals.
Some within government are said to view the scheme as a way of finally delivering Wales’ share of major infrastructure investment following HS2.
Business
Refusal over Pembrokeshire shepherd hut let goes to appeal
AN APPEAL against national park refusal of a shepherd hut holiday let in a Pembrokeshire village, which gained public support after it was turned down, has been lodged.
In an application refused by Pembrokeshire Coast National Park last year, Alex Mazaheri of Melrose, Whitehill, near Cresselly sought retrospective permission for a shepherd hut holiday let, and car parking space in the property grounds.
Work started in February 2025.
An officer report recommending refusal said: “National and local planning policies strictly control new development in such locations, permitting only certain forms where the need for a countryside location is essential.
“It is not considered that the applicant has demonstrated this essential need. Furthermore, the siting of the hut and associated access works, including the removal of a section of boundary hedge, has resulted in a significant visual impact when viewed from the public highway. “
It said a number of concerns had been raised by members of the public including the work already having been carried out, the hut sited in close proximity to the highway at one of the narrowest points of the road, removal of hedgerow and creation of a new access without permission, and a lack of adequate visibility to the road for vehicles emerging.
The application was refused on the grounds including it represented “unjustified new development in the countryside,” it would “appear visually intrusive and discordant within the street scene and surrounding rural landscape,” and “insufficient information was provided to demonstrate that the proposal would achieve nutrient neutrality within the Pembrokeshire Marine Special Area of Conservation (SAC) catchment”.
An appeal lodged with Planning and Environment Decisions Wales (PEDW), says: “The appellant contends that the refusal was disproportionate and failed to properly reflect the modest scale of the proposal, relevant consultee responses, and the ability to address matters through reasonable planning conditions.”
It added: “Neighbours and passers‑by have commented positively on the hut, noting its modest and sympathetic appearance. Following refusal, local press coverage generated a number of public comments, the majority of which were supportive of the proposal.
“While these are not formal consultation responses, they indicate that the local community did not view the shepherd’s hut as harmful.”
It disputed the ‘retrospective’ description as misleading, saying: “The shepherd’s hut was placed within the domestic curtilage in the belief that this was permissible, as ancillary domestic structures are generally allowed under permitted development rights,” adding the hut works are not yet fully complete.
It added Mr Mazaheri had “not sought to evade planning control but has instead acted in good faith, investing in landscaping and improvements for the immediate area while applying for planning in an open and transparent manner”.
It said he was willing to accept conditions including holiday occupancy-only, retention of an off-street parking space, obstruction-free visibility splays, and biodiversity enhancements.
It concluded: “The proposal is proportionate, reversible, and consistent with both local precedent and national guidance. It will support a young local family, provide modest but meaningful income diversification, and deliver biodiversity enhancements without causing harm to landscape character, ecology, highways, or amenity.”
A decision on the appeal is expected later in the year.
-
News7 days agoWelsh Government outlines progress on flood resilience plans
-
Community6 days agoHero female officer keeps job after sexual touching finding
-
Education5 days agoYsgol Henry Tudor reassures parents over Sikh ceremonial kirpan
-
Business6 days agoPopular Italian restaurant hit with £278,000 tax bill plus £186,000 fine
-
Crime7 days agoHakin motorist banned after drink-drive crash
-
Sport7 days agoRecord-breaking disability swim gala celebrates success in Fishguard
-
Health7 days agoDoctors say Wales is failing to value NHS staff over new pay award
-
Entertainment7 days agoDuffy to tell her story in new Disney+ documentary









