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Concern from Bristol Airport as Cardiff eyes £200m in Welsh Government subsidies

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CARDIFF AIRPORT’S bid for a substantial £205 million government subsidy over the next decade has ignited a fierce debate in the UK aviation sector. This funding, announced by Ken Skates, the Welsh Government’s Cabinet Secretary for Transport, aims to safeguard and potentially expand the 5,000 jobs supported by the airport, which the Welsh Government acquired for £52 million in 2013. The proposed investment would be targeted at attracting new airlines and routes, aiming to elevate passenger numbers to over two million annually and diversify the airport’s revenue streams in areas such as aviation training, sustainable aviation fuel, cargo, and maintenance.

However, Bristol Airport has voiced significant concerns, suggesting that such substantial state aid to Cardiff could create commercial imbalances. Bristol Airport, having handled a record 9.8 million passengers in 2023 compared to Cardiff’s 841,000, fears the subsidy could skew competitive dynamics. The airport argues that the investment might disadvantage it by altering the competitive landscape, potentially impacting its passenger numbers and revenue.

The dispute highlights the growing disparity in performance and strategy between the two airports. Cardiff Airport aims to reach its pre-pandemic annual passenger number of 1.6 million by 2026, focusing on a smaller number of routes, including long-haul flights to major economic centres. In contrast, Bristol Airport has thrived by targeting high-volume tourist traffic and low-cost carriers.

The Welsh Government has submitted its investment plans for Cardiff Airport to the Competition and Markets Authority (CMA), seeking to ensure compliance with the UK’s new public sector subsidy rules. The CMA’s Subsidy Advice Unit (SAU) has issued a non-binding evaluation report that calls for a more detailed assessment of potential competitive impacts. The report suggests that the Welsh Government’s analysis could better address the implications for Bristol Airport and other regional airports, which could also compete for similar activities in the future.

Several other UK airports, including Birmingham and Regional and City Airports, have echoed Bristol’s concerns about potential distortions to competition and investment. However, Gloucestershire Airport has reported no anticipated negative impacts on its operations.

The situation is further complicated by Bristol Airport’s expressed willingness to collaborate with Cardiff Airport in non-competitive areas to cut costs and lessen taxpayer expenses, though it seeks greater transparency in how Cardiff’s proposed subsidy will be allocated.

Responding to the news that Bristol Airport said it is “deeply concerned” over plans by the Welsh Government to provide over £200m in subsidy, Natasha Asghar MS, Welsh Conservative Shadow Transport Minister, said: “Investment in airports – as with any large-scale transport infrastructure – is crucial in order to ensure they are able to grow and thrive. This of course, includes large scale subsidies such as the £206 million proposed support package for Cardiff Airport.

“Whilst I do not dispute this positive injection of investment for Cardiff Airport, I do dispute where it is coming from. It remains my belief that the private sector is the right environment for this vital Welsh transport link to thrive, and that we would see much greater investment, growth and passenger take-up if the competitive free market was utilised.

“We all know that government funding is stretched. A move to the private sector would not only encourage efficiency, competition and attract greater investment and growth for Cardiff Airport, but it would free-up more taxpayer cash to spend in other areas of the budget that so desperately need help under current circumstances.”

In response to the CMA’s findings, Cabinet Secretary for the Economy, Rebecca Evans, has stated that the Welsh Government will take the necessary time to consider the CMA’s feedback before refining its proposed investment program. She promised to update the Senedd once a decision has been reached on how to proceed.

This ongoing saga underscores the challenges facing regional airports in balancing growth ambitions with fair competition, especially in a post-Brexit regulatory environment.

As Cardiff Airport strives to expand its capabilities and service offerings, the outcome of this dispute will have significant implications for regional economic development and the broader UK aviation industry.

Business

Pembrokeshire businesses warn rates revaluation could force closures

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LOCAL businesses from across Pembrokeshire have warned that sharp increases in business rates could lead to redundancies and closures, following a public meeting held in Saundersfoot on Monday (Dec 15).

The meeting, held at the Hean Castle venue, brought together traders from retail, hospitality, professional services and the visitor economy to raise concerns about the impact of the latest business rates revaluation, which will take effect from April 2026.

Among those attending were Samuel Kurtz MS, Conservative Member of the Senedd for Carmarthen West and South Pembrokeshire, and Pembrokeshire County Councillor Jonathan Grimes, who represents Pembroke St Mary South and Monkton.

Businesses described sudden and significant increases in rateable values, with some reporting rises of more than 100%, despite no expansion in premises or improvement in trading conditions.

Evidence presented to the meeting highlighted concerns first identified by Pembrokeshire County Councillor Huw Murphy, who has been raising the issue locally and working with businesses, The Herald and S4C to bring the scale of the increases to public attention.

Cllr Murphy was unable to attend the Saundersfoot meeting, but details were provided on his behalf by Lee Bridges, drawing on information from businesses in the Newport & District Chamber of Trade area and Dinas Cross.

Figures relating to twenty local businesses showed that eighteen are facing increases in their rateable values, with one business hit by a 140% rise from April 2026. The average increase across the group was 36%, pushing the combined rateable value from £499,000 to £679,000 — an additional £180,000 burden due to take effect within four months.

One affected business has already warned that staff redundancies will be “unavoidable” if the increases go ahead.

Attendees criticised the Welsh Government’s transitional relief arrangements, describing them as inadequate and warning that they fall short of the support currently available to parts of the tourism and hospitality sector.

Tourism and hospitality account for an estimated 23% of Pembrokeshire’s economy, and those present warned that unchecked increases could have a serious impact on employment in coastal communities dependent on visitor trade.

The 2026 revaluation is based on rental values from April 2024 and has sparked concern across the county, with reports elsewhere in Pembrokeshire of increases of up to 400%.

Following the meeting, Mr Kurtz confirmed that he has written to the Cabinet Secretary for Finance and Welsh Language, Mark Drakeford MS, warning that current relief measures are insufficient and risk “pushing otherwise viable businesses over a cliff edge”.

He said businesses are already making decisions to close as a direct result of the projected increases and called for urgent action to protect jobs and local economies.

Businesses are being urged to check their new rateable values on the Valuation Office Agency website and to seek advice or contact their local representatives if they believe the figures are inaccurate or unsustainable.

Image caption:

Business rates meeting: Traders gather in Saundersfoot to raise concerns over impending increases, with Samuel Kurtz MS addressing attendees (Pic: Sam Kurtz MS)

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Business

Computer gaming lounge plans for Tenby cinema submitted

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FORMAL plans to turn Tenby’s former Poundland and Royal Playhouse cinema to a retro computer gaming lounge have been submitted to the national park.

Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby’s branch on White Lion Street.

In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a change of use of the former Gatehouse (Playhouse) Cinema, most recently used as a Poundland store to a retro gaming lounge.

This follows a recently submitted application for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former cinema, ahead of the wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front façade.

A supporting statement for the change of use scheme through agent Asbri Planning Ltd says: “The proposed retro gaming lounge will be inviting to all ages, including families, groups and individuals with no age restriction. The applicant has several similar premises across other parts of the UK and operates under a successful business model.

“This includes a fee being payable to enter the premises which thereby grants access to unlimited game time to all consoles/arcade machines. There will be no slot or coin-based reward games, so the proposal would not be considered/classed as gambling. The site will provide snacks and drinks (including alcohol) which will be canned/bottled drinks.

“The sale of such drinks would be ancillary to the overall function of the premises, and a separate alcohol licence will be submitted, accordingly.”

It adds: “The development would provide a much-welcomed addition to White Lion Rd which will improve the vitality and viability of the immediate area by promoting greater levels of footfall within the area and introduce greater variety to the shopping frontage at this location.”

It proposes opening hours of 10-10, Sunday to Thursday, and to 11pm on Fridays and Saturdays.

The application, and the related signage scheme, will be considered by park planners at a later date.

Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.

The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.

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Business

Independent brewers join call for business rates relief as pub closures feared

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INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.

The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.

The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.

Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.

New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.

The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.

Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.

“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.

“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”

Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.

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