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Bullying claims at Development Bank ‘extremely worrying’

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ENTREPRENEURS have been bullied and forced to hand over control of their businesses after approaching the Development Bank of Wales for financial support, the Senedd heard.

Paul Davies, who chairs the economy committee, raised “extremely worrying” evidence from Dylan Jones-Evans, an economist and academic, about the Development Bank.

Mr Davies said the committee also received emails from people who had dealings with the bank and felt they had been bullied out or had their businesses essentially stolen.

Prof Jones-Evans told the committee: “Unfortunately, I have been approached by … businesses prior to this review who feel they have not been treated fairly with valuations being too low, where decisions have taken far too long, and where terms are unacceptable.

“Worst still, there have been instances where some have been bullied by the directors imposed on them, where they have been forced out by dubious means and where founders feel they have not been supported by the bank.”

Prof Jones-Evans warned that young, inexperienced founders found themselves in this position and should have received far greater support.

Mr Davies said: “If these reports are accurate, those actions may well have extinguished that entrepreneurial spirit, which would be an absolute tragedy and exactly the opposite of what the bank was established to do.”

The former Tory group leader added that much of the testimony was supplied anonymously, which limited the committee’s ability to scrutinise the evidence.

But he cautioned: “It only takes a brief look on a news website to find situations where allegations such as bullying have been made against other public institutions where, in some cases, they have been ignored and, as we know, sometimes these cases do not end well.”

Mr Davies stressed: “I just want to be clear: I have discussed these accusations with the bank via correspondence and in a private meeting and they absolutely refute them.”

Leading a debate on November 27, he said most of the evidence received by the committee, which made 13 recommendations, was supportive of the bank and its operations.

Mr Davies also raised concerns about the Development Bank being reclassified by the Office for National Statistics as central government in 2021.

He explained this leads to “double counting”, with the Welsh Government having to keep money in reserve to cover any uninvested funds given to the bank.

Plaid Cymru’s Luke Fletcher said the transition from Finance Wales to the Development Bank marked a step change in 2017, with investment doubling to £124m by 2022/23.

Mr Fletcher advocated merging the bank with Business Wales to create a one-stop shop.

Labour’s Hefin David pointed out the bank is not covered by Wales’ Future Generations Act, raising suggestions a social value clause could be inserted into grant and loan agreements.

Samuel Kurtz, the Conservatives’ shadow economy secretary, raised warnings from the Federation of Small Businesses of “massively fragmented” business support.

He expressed concerns about troubling evidence from Prof Jones-Evans that the Development Bank did nothing to stop imposed directors bullying out founders.

The economy committee scrutinised bank executives on November 20, questioning a 3.2% cost-of-living pay rise awarded to all staff including those earning six-figure salaries.

Dr David pointed out that annual remuneration for the highest-paid director increased by 20% from £217,000 to £260,000 between 2023 and 2024.

Giles Thorley, chief executive of the bank, which wrote off £27m in 2022/23, said 3.2% was lower than the Welsh Government’s rise, attributing the 20% to performance-related pay.

Rebecca Evans, Wales’ economy secretary, said the Development Bank has invested £778m in more than 3,900 businesses since 2017, supporting 41,700 jobs.

She said: “That’s a total impact of £1.66bn on the Welsh economy – real investment, real businesses, real growth, supporting businesses in every part of Wales.”

Turning to concerns received by the committee, Ms Evans said: “Finance can be complex and I am aware there are times when customers don’t understand the role of the bank or the obligations of the bank and this can, regrettably, lead to misunderstandings and complaints.”

She added: “I’ve had the opportunity to address concerns with officials. It is the case, though, that founder members of companies are sometimes removed by their boards.”

Ms Evans told the Senedd she has confidence in the leadership of the bank and its board, with an external review set to take place next year.

Business

Welsh Govt shifts stance on business rates after pressure from S4C and Herald

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Ministers release unexpected statement 48 hours after widespread concern highlighted in Welsh media

THE WELSH GOVERNMENT has announced a new package of tapered business rates relief for 2026-27, in a move that follows sustained pressure from Welsh media — including S4C Newyddion and The Pembrokeshire Herald — over the impact of revaluation on small businesses.

In Milford Haven, the hard-pressed pub sector is already feeling the impact: the annual bill for The Lord Kitchener is rising from £5,000 to £15,000, while rates at the Kimberley Public House have nearly doubled from £10,500 to £19,500. The Imperial Hall’s rates are increasing from £5,800 to £9,200, prompting director Lee Bridges to question why businesses “are being asked to pay more when we use less services”. In Haverfordwest, the annual rates bill for Eddie’s Nightclub is increasing from £57,000 to £61,500.

A written statement, issued suddenly on Wednesday afternoon, confirms that ministers will introduce a transitional “tapering mechanism” to soften steep increases for tourism, hospitality and small independent operators. Full details will be published with the draft Budget later this month.

The announcement comes less than two days after The Herald’s in-depth reporting brought forward direct concerns from Pembrokeshire business owners and councillors, highlighting the uncertainty facing one of Wales’ most important local industries.

Herald reporting credited by senior councillor

Cllr Huw Murphy

Pembrokeshire County Council Independent Group Leader Cllr Huw Carnhuan Murphy publicly thanked The Herald for pushing the issue into the spotlight.

In a statement shared on Wednesday, Cllr Murphy said: “Welcome news from Welsh Government. Thanks to Tom Sinclair for running this important item in the Herald in relation to the revaluation of businesses and the consequences it will have for many.

He added: “Newyddion S4C hefyd am redeg y stori pwysig yma ynghylch trethi busnes.,” which in English is “and thanks to S4C Newyddion as well for running this important story about business taxes.”

He added that the Independent Group “will always campaign to support our tourism and agriculture industry, on which so many residents rely within Pembrokeshire”.

Media spotlight increased pressure on Cardiff Bay

On Monday, ministers said business rates plans would be outlined “within the next two weeks”.
By Wednesday afternoon — following prominent coverage on S4C and continued pressure from The Herald — Welsh Government released an early written statement outlining new support.

Industry sources told The Herald they believed the level of public concern, amplified by the media, “forced the issue up the agenda much faster than expected”.

A cautious welcome for ‘better than nothing’

Cllr Murphy welcomed the partial support, though he stressed it fell short of what many businesses had hoped for.

“This isn’t the level of support many were hoping for,” he said, “but it is certainly much better than nothing.”

Draft Budget expected soon

The full tapered support scheme will be detailed in the Welsh Government draft Budget, expected within a fortnight.

Tourism and hospitality representatives have reserved final judgment until the figures are published, but many have expressed relief that some support will continue, following weeks of uncertainty.

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Pembrokeshire’s Puffin Produce a winner at British Potato Awards 2025

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PEMBROKEHIRE-BASED Puffin Produce, Wales’ leading supplier of fresh root vegetables, has been named winner of the Best Environmental/Sustainability Initiative at the prestigious British Potato Awards 2025.

The judges recognised the company’s whole-system approach that combines ambitious long-term targets with practical, measurable action across its grower network and operations.

A sector-leading grower scheme Launched in winter 2024, the ‘Sustainable Spuds’ programme is already regarded as one of the most progressive grower incentive frameworks in UK agriculture. It rewards farmers with premium payments for verifiable improvements in nutrient efficiency, energy use, soil health, biodiversity and emissions reduction. Covering the entire crop cycle, the scheme is designed to drive rapid on-farm change while remaining commercially viable.

ROOT ZERO – the UK’s first carbon-neutral certified potato Since its 2021 launch, the ROOT ZERO brand has targeted a 51% reduction in carbon intensity per kilo by 2030. Progress is ahead of schedule. The potatoes are packed in 100% plastic-free, compostable and recyclable packaging, while 0.5p from every pack sold is donated to the Bumblebee Conservation Trust. Consumer-facing campaigns also promote low-energy cooking and food-waste reduction.

Verified science-based targets and rapid decarbonisation

Through the Science Based Targets initiative (SBTi), Puffin Produce has committed to cutting Scope 1 & 2 emissions by 46% by 2030 and achieving at least a 90% reduction across all scopes by 2040. Since baseline measurements in 2019:

  • Operational emissions are already down 30%
  • 2 MW of rooftop solar panels (covering 6,000 m²) now generate 100% of summer electricity demand, saving 2.4 tonnes of CO₂e daily
  • Winter power is purchased from guaranteed zero-carbon sources
  • Transition away from fossil fuels continues at pace

Zero waste ambition delivered early

Puffin signed the Courtauld 2030 pledge in 2015 to halve food waste by 2030. The company exceeded that target five years early, achieving a 57% reduction despite growing production volumes. Rigorous crop utilisation and technology investments ensure almost every potato grown reaches a plate.

As a Leading Food Partner for FareShare Cymru, Puffin has now helped provide the equivalent of two million meals through its ‘Surplus with Purpose’ programme.

Landscape-scale collaboration In 2025 Puffin co-founded the Wales Landscape Enterprise Network (LENs) – a farmer-led, business-backed model for stacking private and public funding to deliver nature-based solutions. Early results from the first LENs projects in potato-growing catchments are striking:

  • 150+ acres of habitat and soil-health enhancements
  • 25% average increase in five key wildlife indicator species
  • 17% lower carbon emissions per tonne of potatoes
  • 40 kg less nitrogen fertiliser per hectare – with no yield penalty

Emma Adams, Head of Sustainability at Puffin Produce, commented: “This award belongs to everyone in our supply chain – growers, team members and partners – who have turned ambition into action. Agriculture is complex, but it is also one of the most powerful tools we have to tackle the climate and nature crises. By working collaboratively and investing boldly, we’re proving that rapid, measurable progress is possible.”

Rooted in Pembrokeshire and sourcing ~80% of its produce from within 50 miles, Puffin Produce remains the only BRC AA+ accredited vegetable packing facility in Wales. It is the proud home of two Protected Geographical Indication (PGI) products – Pembrokeshire Early Potatoes and Welsh Leeks – and supplies major UK retailers and wholesalers all year round.

A standout example of Welsh food production leading the way to net zero and nature recovery.

Photo:

Emma Adams head of sustainability at Puffin Produce receiving the BP Award presented by Adrian Cunnington (L) and Jamie-Sutherland

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Large new development at one of Pembrokeshire’s biggest dairy farms approved

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PLANS for a heifer accommodation building and associated works at one of Pembrokeshire’s largest dairy farms, with a milking herd of 2,000 cows, have been given the go-ahead.

In an application recommended for approval at the December 2 meeting of Pembrokeshire County Council’s planning committee, Hugh James of Langdon Mill Farms Ltd sought permission for a 160-metre-long heifer accommodation building, a slurry separation/dewatering building and associated yard areas at 1,215-hectare Langdon Mill Farm, near Jeffreyston, Kilgetty.

A supporting statement through agent Reading Agricultural Consultants said: “The holding currently has a milking herd of approximately 2,000 cows, which are housed indoors for the majority of the year, with dry cows and heifers grazed outdoors when weather and soil conditions permit.

“There has been significant investment in buildings and infrastructure at the farm over the last decade in respect of cattle accommodation, slurry storage, milking facilities, Anaerobic Digestion (AD) plant, feed storage. Recently a calf and weaned calf accommodation buildings were approved by Pembrokeshire County Council with construction almost complete.

“The unit is efficient, achieving yields of more than 10,000 litres/cow/year, with cows being milked three times/day in the 60-point rotary parlour. Langdon Mill Farm currently directly employs 21 full-time, and three part-time staff.  Of these, four live on site in the two dwellings opposite the farm, with the remaining staff living in the locality.”

It added: “Although the unit has previously purchased heifers to aid expansion, the farm now breeds most of its own replacements to improve genetics and to minimise the ongoing threat of bovine tuberculosis (bTB).

“Following the completion of the calf and weaned calf accommodation buildings, the farm will be rearing all of the cattle under seven months at Langdon Mill Farm, before being transported off site to be reared at three farms in the local area. At 22-months the in-calf heifers are brought back to the maternity building to calve and then are introduced into the milking herd.”

It said the proposed building would be used by heifers between the ages of 7-22 months, the siting  “directly influenced by the adjacent calf and weaned calf buildings, with livestock being moved from one building to the next as they get older”.

Approval was moved by Cllr Brian Hall, seconded by Cllr Danny Young, with Cllr John T Davies also stating his support.

“It’s common sense; the fact we approved a calf-rearing shed, it follows on you need a heifer rearing shed,” he said.

Cllr Davies later said the scheme would also support biodiversity, and, with a decline in milk prices, supporting the large-scale farm was about “safety in numbers”.

Chair Cllr Mark Carter said it was “a pleasure to be supporting the farming industry”.

Members unanimously supported the recommendation of approval.

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