Business
Welsh Government rejects Council’s tourism tax plea
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
Battery storage system by Pembroke Power Station approved
A SCHEME for a battery storage facility near Pembroke Power Station which will put the county at “the forefront of South Wales’ low-carbon future” has been approved by county planners.
In an application recommended for conditional approval the January meeting of Pembrokeshire County council’s planning committee, RWE Generation UK plc sought permission for a Battery Energy Storage System (BESS) of up to 212 battery units including ancillary works, along with a connection to the National Grid on land next to Pembroke Power Station, Pwllcrochan, Pembroke.
An officer report for planners said: “The application site comprises an area of approximately 32 hectares of primarily agricultural land within the countryside, to the south of Pembroke Power Station.
“As well as the main part of the application site that would accommodate the BESS, the application site also includes a linear cable route to connect the BESS to the National Grid substation located adjacent to Pembroke Power Station, temporary construction laydown areas and a new means of access from the main power station access road to the west.”
Members heard that extensive mitigation was planned for visual impacts related to the proposal.
Speaking at the meeting, project manager Victoria Williamson said RWE wanted the Pembrokeshire site to be “at the forefront of South Wales’ low-carbon future,” the battery facility providing storage of excess electrical energy from the ‘grid, contributing to a consistent energy framework by storing energy at peaks and making it available for periods of higher demand.
Members heard local town and community councils had been liaised with, and local households had been informed of the scheme, with “overwhelming support for the proposal”.
Following a request for information from Cllr Alan Dennison, members were told that, if approved, it was hoped the scheme would start at the end of 2025, and be operational by early 2028.
Moving approval, Cllr Brian Hall said: “If we don’t go down this line, to be honest I don’t think the power station will stay there; it’s essential to go down this green energy, with the extra staff and benefits to the Pembrokeshire economy I think it’s marvellous, I have no hesitation whatsoever to move this recommendation.”
The recommendation for conditional delegated approval from the council’s head of planning, once a draft Habitat Regulations Assessment had been ratified, was unanimously passed by committee members.
Business
Residents meet with local politicians over A477 road safety concerns
MEMBERS of the Eglwyscummin Community Council and residents of the village of Red Roses today (Friday 17th January) called a road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP to highlight what they consider to be an ‘unsafe’ junction.
Growing concerns about the safety of the Red Roses junction brought about by the increase in near misses and accidents from users of the junction was evidenced during the meeting. The community hope that continued pressured on Welsh Government will deliver the additional safety modifications needed to reduce the number of incidents happening at the junction.
The local Member of Senedd for Carmerthen West and South Pembrokeshire, Samuel Kurtz, has been leading the campaign with the Community Council and has been liaising with SWTRA and Welsh Government Ministers to call for action on this junction.
He has already delivered a successful campaign to change the road layout of the notorious A477 Nash Fingerpost junction following several serious accidents, which is already being of real benefit to the local community. He hopes to build on this success by continuing to fight for further improvements in Red Roses and address the speeding issues being experienced on the A477 through the village of Milton.
Following the community meeting, Samuel Kurtz MS commented: “The Community Council have been extremely active in sharing the experiences that drivers are having at this junction and have put forward some recommendations that they believe will make it safer. Sadly, it’s a typical case of the junction meeting all the criteria on paper, but in practice, it’s dangerous and needs addressing.”
“ In this case, traffic travelling Westward towards Pembroke at speed have no turn off lane before having to slow down to virtually a standstill to make the narrow sharp lefthand turn off the A477 to Red Roses. On this fast busy road, it has been the root cause of the sign being crashed into on several occasions as drivers have failed to make the turn. There are crashes or near misses, as cars break sharply to try to make the turn as safely as possible.”
He added: “I believe that there are some relatively straight forward steps that can be taken which will deliver improvement and I’ve been asking Welsh Government for a review of the A477 and will invite road officials to see for themselves the junction in use. But I do need feedback from the local community to help make the case to Welsh Government. I’m asking people to get in touch with me via my Facebook page or email to share their experience, opinion, or example of any issues they may have had or witnessed using this stretch of road.”
Pictured above: Members of the Eglwyscummin Community Council at the road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP discussing safety concerns at the Red Roses junction.
Business
Haverfordwest Farmers Market: Local producers and fresh produce
AS County Councillor for Castle Ward, Thomas Tudor expressed his delight after visiting the Haverfordwest Farmers Market. Held in Castle Square, the market showcases a variety of high-quality local produce, offering a vibrant community shopping experience.
Fresh produce every Friday
The Haverfordwest Farmers Market takes place every Friday from 9:00am to 2:00pm in the heart of Pembrokeshire’s bustling county town. Visitors can explore a wide range of stalls offering fresh produce, meats, crafts, and organic goods directly from local farmers, growers, and artisans.
Market Manager Joanne Welch explained: “Customers enjoy a memorable shopping experience in a vibrant, friendly atmosphere, have confidence in the producers, their products, and can always rely on the high-quality produce available at every market.”
Why shop local?
The market serves as a hub for supporting local businesses and reducing food miles. “Buying local makes sense,” Joanne continued. “Not only does it benefit the local economy, but it guarantees the freshest produce that is great value for money—and tastes fantastic too!”
What you need to know
- Purpose: Farmers markets provide a unique opportunity to connect with local producers while enjoying fresh, quality food. Supporting these markets ensures a sustainable future for local farmers and reduces the environmental impact of long food supply chains.
- Hygiene standards: Stallholders adhere to the same strict hygiene regulations as other food retailers, ensuring safety and quality for customers.
- Cost: While prices may not always be cheaper, the quality and freshness of the products offer excellent value for money.
For those looking to enjoy a unique shopping experience, Castle Square in Haverfordwest is the place to be every Friday. Explore the best of Pembrokeshire’s local produce and craft while supporting your community.
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