Business

Welsh Government rejects Council’s tourism tax plea

Published

7 months ago

December 6, 2024

THE WELSH GOVERNMENT has rejected a request from Pembrokeshire County Council to reconsider its 182-night rule on holiday letting.

In a letter to the local authority from Wales’s Finance Secretary, Mark Drakeford, the Welsh Government said it would not reconsider its approach until it had two years’ data on its effects.

The Labour government introduced the 182-night rule to target property owners who casually rent properties and pay neither the increased Council Tax premium on second homes nor Small Business Rates. By encouraging owners to release properties onto the for-sale market, the government wants to increase the availability of homes in Wales’s holiday hotspots. It’s a blunt tool, and there have been predictable but unforeseen consequences (at least by the Welsh Government). The rule’s introduction has reduced the number of properties upon which owners pay either the enhanced rate of Council Tax for second homes or pay business rates.

A LETTER TO MARK

On October 17, Pembrokeshire’s county councillors instructed the Council leader to write to the Welsh Government asking for a reduction in the 182-night rule.

Although councillors agreed an increase in the previous threshold was welcome, many felt the letting target was too high for many viable businesses.

The letter to the Welsh Government said: “Whilst 182 days is certainly achievable in some of our main tourist towns such as Tenby, Saundersfoot, and Newport, it was very difficult to achieve this in other parts of the county, particularly away from the sea.”

The letter said the rule is having a detrimental effect on Pembrokeshire’s vital tourism industry.

Council Leader Jon Harvey’s letter also said: “We do not wish to implement any local policy decisions that would conflict with Welsh Government, and, as such, I am formally writing to you to ask the Welsh Government to consider reducing the 182 days let threshold for self-catering properties to qualify for Non-Domestic Rates.”

DRAKEFORD SAYS “NO”

In a reply from Mark Drakeford, which was circulated to all Council members, the Welsh Government refused to reconsider its position ahead of the next tourism season.

Mr Drakeford said: “The primary aims of our changes to local taxes are to ensure property owners are making a fair contribution and to maximise the use of property to the benefit of local communities. This could include benefits arising from increased occupancy for short-term letting or the release of some properties for sale or rent as permanent homes for local people.

“As a consequence of the changes, self-catering properties are classed as non-domestic only if they are being used for business purposes for the majority of the year. This provides a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.”

Mr Drakeford claimed that information from businesses engaged in holiday letting showed the Welsh Government’s approach was having the effects Cardiff Bay desired. That seems contrary to data provided by the Wales Tourism Alliance and the figures produced for Pembrokeshire County Council’s budget.

Confirming the Welsh Government has no plans to reconsider its position, Mark Drakeford said: “We understand that there may be a period of adjustment, as some property owners consider their options and determine how to respond. It will be important to allow time for the changes to embed before drawing any firm conclusions.

“The initial impact on the number of self-catering properties classified as non-domestic will be known after April 2025, when two years will have elapsed since the changes took effect. This is when the Valuation Office Agency is expected to have completed a full round of routine compliance checks.”

Claiming that reconsidering the position would cause “uncertainty” in the private letting sector, Mr Drakeford wrote: “There are no plans to undertake a formal review in the short-term, nor in isolation from the broader package of measures within our three-pronged approach to tackling the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.”

That’s not only a “no”, it’s a “no” with knobs on.

YOU ALREADY HAVE ALL THE TOOLS YOU NEED

Mark Drakeford doubled down on his “no” by claiming Pembrokeshire County Council already had all the tools it needed to address the problems caused by the tourism tax.

He said: “We have extended the exceptions to council tax premiums to include properties with a planning condition which specifies that the property may only be used as a holiday let or prevents its permanent occupation as a person’s sole or main residence. We have also provided

guidance for local authorities on the use of discretion to tailor their arrangements to reflect local circumstances.”

Quite how designating a property for a holiday let allows its release onto the local housing market where homes for local families are in short supply is unaddressed.

The Finance Secretary continues: “Where a self-catering property does not meet the letting criteria and is not subject to a planning condition, the Welsh Government has provided local authorities with as much discretion as possible to consider the approach to take for the benefit of your communities.

“We consider our local taxation regime will help local authorities to incentivise the right balance between capacity within the self-catering tourism sector, and [its[ economic benefits and supporting viable communities of local residents to live and work in these areas.”

If, as Mark Drakeford claims, Pembrokeshire County Council has all the powers and options it needs to address the issue, there will, no doubt, be a flood of information coming from the Council’s Cabinet Member for Finance, Joshua Beynon, to show members precisely where the rabbit that should be in the hat is hidden.

Business

Welsh businesses see AI as key driver of local growth

Published

2 hours ago

July 8, 2025

Tom Sinclair

Majority report increased productivity and profits from adopting new technologies

A MAJORITY of Welsh businesses believe that embracing artificial intelligence (AI) will play a major role in driving local economic growth, according to new figures from Lloyds Bank.

More than three in five firms (63%) say that greater AI adoption will be a key contributor to local economic performance in the years ahead.

The data, published in Lloyds’ long-running Business Barometer, shows that 61% of companies in Wales are already using AI tools—and the impact has been largely positive. Of those using the technology, 81% say it has boosted productivity, while 80% report increased profitability.

Companies are primarily using AI to improve efficiency (71%) and to analyse data for better decision-making (36%).

Looking ahead, nearly a quarter (24%) of Welsh businesses plan to increase their AI investment in the next 12 months. More than one in five (22%) also expect to create new roles focused specifically on AI development and implementation.

When asked about their motivations for future investment, 39% of firms said they hoped AI would help expand their customer base, while 36% cited the potential for further productivity gains.

However, businesses also highlighted the need for better understanding of the technology’s benefits (41%) and growing competitive pressure (18%) as factors influencing their investment decisions.

The Lloyds Business Barometer surveys 1,200 businesses each month and has been tracking economic sentiment since 2002.

Samantha Noble, area director for Wales at Lloyds Bank, said: “Welsh businesses identify AI as an avenue for local growth, which perhaps reflects their own success with it – the overwhelming majority of firms already using the technology have seen higher productivity and profitability.

“Sharing knowledge and experience will be critical to helping more firms start applying it, and ultimately ensuring the full potential of the technology is realised.”

Business

Pembrokeshire glamping firm reaches new green heights

Published

11 hours ago

July 7, 2025

Staff Writer

Damaged airbeds transformed into washbags and wallets through eco-partnership

AN AWARD-WINNING glamping company based in Pembrokeshire is taking bold steps to become more sustainable—thanks to support from Business Wales.

Nights Under Canvas, a family-run business specialising in luxury tent hire for weddings, festivals, corporate events and staycations, has introduced a range of eco-friendly initiatives to reduce its carbon footprint and environmental impact.

The company signed up to Business Wales’ Green Growth Pledge, a Welsh Government-backed scheme that helps businesses adopt more sustainable practices. With guidance from Business Wales Decarbonisation Adviser Sarah Gore, the company has implemented greener transport methods, improved waste management, and prioritised local sourcing.

One of its latest sustainability initiatives involves repurposing damaged airbeds into unique merchandise. The project sees Nights Under Canvas partner with Ecoast, a Saundersfoot-based retailer of recycled goods, and British upcycling brand Recycling Rachel. The result is a new range of washbags, wallets, purses and bumbags—made from salvaged materials and sold in-store.

Owner Steven Bradley said: “I’ve always had a deep appreciation for the environment, so improving our sustainability efforts was a key priority. Sarah’s support has been invaluable—we’re thrilled to be reducing waste and giving old materials a new life for our customers.”

Business Wales also helped Steven enhance the company’s online presence, offering digital support and training in website design, SEO, and social media strategy to help the business reach new audiences.

Sarah Gore praised the business’ efforts: “Steven’s passion for sustainability has been evident from day one. He’s constantly looking for new ways to reduce environmental impact, and Nights Under Canvas is a shining example of green growth in action.”

Business Wales is funded by the Welsh Government. For free support and advice, visit www.businesswales.gov.wales or call 03000 6 03000. Rydym yn croesawu galwadau’n Gymraeg – we welcome calls in Welsh.

Business

Two Pembrokeshire beaches named among best in Wales

Published

15 hours ago

July 7, 2025

Tom Sinclair

Whitesands and Saundersfoot praised in The Times Best Beaches Guide 2025

TWO Pembrokeshire beaches have been named among the very best in the UK, with The Times praising their natural beauty, tourist appeal and unique history in its much-anticipated Best Beaches Guide 2025.

The guide, now in its 17th year, saw travel experts cover over 5,800 miles of coastline and assess more than 750 beaches across the UK to find the nation’s top coastal spots. Eight Welsh beaches made the final cut — with Whitesands and Saundersfoot flying the flag for Pembrokeshire.

Whitesands: Steeped in legend

Whitesands, near St Davids, was described as a “timeless, spiritual location” with fine golden sand, great surf, and sweeping views of Ramsey Island. The Times noted the beach’s historical significance, claiming that this may have been the very place where Saint Patrick departed for Ireland in AD432 to begin his missionary work.

A hotspot for surfers, families, and walkers alike, Whitesands offers both natural beauty and strong amenities. With a nearby café, seasonal lifeguards, and walking trails linking to the Pembrokeshire Coast Path, it remains one of the region’s most treasured coastal gems.

Saundersfoot: A harbour village favourite

Also featured was Saundersfoot, a bustling harbour village popular with tourists year-round. The Times praised its “seaside charm and easy-going atmosphere,” as well as its accessibility for families, wide sandy beach, and thriving food scene.

Boat trips, dolphin-spotting excursions, and fresh seafood on the seafront were all noted as standout attractions — while the proximity to Tenby and the village’s ongoing regeneration projects helped cement its place on the list.

Celebrating Welsh coastal excellence
The Times guide was topped overall by Portstewart Strand in Northern Ireland, but Wales had a strong showing with eight beaches recognised, including:

Shell Island, Gwynedd (regional winner)
Three Cliffs Bay, Swansea
Dunraven Bay, Vale of Glamorgan
Mwnt, Ceredigion
Aberdaron, Gwynedd
Llanddwyn, Anglesey

Pembrokeshire’s inclusion reflects the county’s enduring reputation as one of the UK’s top holiday destinations, particularly for lovers of the sea, sand, and rugged coastline.

A boost for tourism
Tourism operators in Pembrokeshire have welcomed the news. One local business owner told The Herald: “We know how special these places are, but national recognition like this really helps encourage visitors to explore more of what Pembrokeshire has to offer.”

With summer well underway, the timing of the list provides a timely boost to local tourism — and a reminder to residents and visitors alike of the natural treasures right on their doorstep.