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Crown Estate invests in Welsh offshore wind projects

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THE CROWN ESTATE has allocated funding to four Welsh organisations in the first round of its £50 million Supply Chain Accelerator programme, aimed at advancing the UK’s offshore wind sector. Across England, Wales, and Scotland, 13 organisations have received a share of £5 million to support early-stage supply chain projects.

The Welsh projects will contribute to the development of floating wind platforms, operations and maintenance facilities, and skills training. The funding is expected to unlock over £9 million in immediate investment, with the potential for £400 million in future capital expenditure. These initiatives align with The Crown Estate’s Celtic Sea Blueprint, which forecasts 5,300 new jobs and a £1.4 billion economic uplift through the deployment of floating offshore wind capacity in the region.

The Welsh recipients include:

  • Marine Power Systems Ltd.
  • Neath Port Talbot Group of Colleges (subject to contract)
  • Pembrokeshire College (subject to contract)
  • Tugdock Ltd.

Catalyst for change
Ben Brinded, Head of Investment at The Crown Estate, described the funding as a pivotal step for the UK’s renewable energy goals:
“This is a significant moment for The Crown Estate as our first funding into the UK’s offshore wind supply chain. We are fostering collaboration with industry and government partners to catalyse net zero, restore nature, and drive economic growth. The Supply Chain Accelerator is a vital step in maturing propositions that attract public and private investments.”

Welsh Secretary Jo Stevens welcomed the funding as “an important boost to build local jobs and skills in South Wales,” highlighting that floating offshore wind technology provides cheaper energy and creates future-proof jobs.

Rebecca Evans, Welsh Government Cabinet Secretary for Economy, Energy, and Planning, echoed these sentiments, emphasizing Wales’ ambition to generate sufficient renewable energy to meet its own needs by 2035.

Expanding potential
The Crown Estate, which oversees the seabed around England, Wales, and Northern Ireland, launched the £50 million Supply Chain Accelerator fund earlier this year. With £45 million earmarked for future rounds, the programme aligns with the UK’s Industrial Growth Plan for offshore wind, aiming to unlock more opportunities in the renewable energy sector.

About The Crown Estate
The Crown Estate is a business mandated by Parliament to manage a £16 billion portfolio that includes offshore wind assets, urban centres, and rural holdings. Profits from its operations, totaling £4 billion over the past decade, are returned to HM Treasury.

Business

Milford Haven: Wales’ energy hub embraces green transformation

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ONCE synonymous with oil and gas, Milford Haven is now poised to lead Wales into a cleaner, greener future—powered by hydrogen.

Green energy pioneer Haush Ltd has chosen Milford Haven as the location for its new UK headquarters, marking a significant step towards establishing the area as a hub for hydrogen innovation. The company’s ambitious plans aim to decarbonise land, sea, and air transport, while also exporting green hydrogen to Europe.

Backed by the Welsh Government through the HYBRID SBRI Hydrogen Port Re-Fuelling Project (HyPR), Haush’s initiative will kick off immediately. The HyPR project supports trials to accelerate hydrogen production and create refuelling solutions for both onshore and offshore vessels. A key part of this effort is designing a permanent hydrogen refuelling infrastructure at the Port of Milford Haven, unlocking its potential as a green energy leader.

For over 65 years, Milford Haven has been a cornerstone of the UK’s oil and gas sector, processing 20% of the nation’s oil and gas. Now, this latest investment signals the beginning of a transformative shift toward renewable energy.

Welsh Government Economy, Energy, and Planning Cabinet Secretary, Rebecca Evans, welcomed the move, saying:
“Jobs and green growth are a priority for this Welsh Government, so I am delighted that Haush has chosen Milford Haven as the base for its new UK headquarters. The company’s ambitious growth plans align perfectly with our aspirations to see Wales become a global leader in renewable energy generation.”

Milford Haven’s journey from oil and gas to hydrogen innovation could set a blueprint for green energy transformation in the UK and beyond.

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Business

Wales Tourism Alliance challenges Visitor Levy Bill

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THE WALES TOURISM ALLIANCE has submitted its formal response to the Welsh Government’s Visitor Levy Bill. The response, delivered to the Finance and the Legislation, Justice, and Constitution Committees, outlines several key concerns about the proposed legislation.

Key issues raised by the WTA

  1. The Welsh Government’s own Explanatory Memorandum and Economic Impact Assessment suggest the policy’s administrative costs will outweigh the revenue generated.
  2. The Bill extends beyond tourism visits, encompassing stays of less than 31 days for purposes such as work or education.
  3. Local authorities will retain sole control over any net revenue, with no obligation to allocate funds to tourism-related initiatives.
  4. The data underpinning the policy and its assumptions are unreliable and raise significant concerns.
  5. Industry input, including that from Wales’s own tourism forum chairs, has been inadequately considered.
  6. The policy fails to account for the pressures already impacting Welsh tourism over the past five years.

Industry reaction

WTA Chair Rowland Rees-Evans voiced disappointment over the proposal, which the Welsh Government’s own Economic Impact Assessment predicts could lead to net job losses.

“The WTA has engaged with the Welsh Government since the Visitor Levy was proposed, and we are disappointed they are pursuing a policy their own analysis suggests will have a negative impact on employment,” Rees-Evans stated.

“The tourism industry in Wales is still recovering from the devastating effects of Covid-19, grappling with the 182-day rule on holiday lets, and facing ongoing challenges from the cost-of-living crisis. Additionally, businesses are contending with a 40% rise in the living wage since 2020 and increased national insurance contributions starting this April.

“To impose another burden on a fragile sector, which employs over 20% of the workforce in some parts of Wales, is not in the best interest of the country.”

Rees-Evans emphasized the broader implications of the levy, stating:
“We must also dispel the notion that this is solely a Tourist Tax. It is a Visitor Levy that will affect everyone in Wales – from children on overnight school trips to patients requiring overnight stays before early NHS admissions.”

Pictured: Rowland Rees-Evans, Chair of the Wales Tourism Alliance

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Business

Impact of budget announcements felt by Welsh business in Q4

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EMPLOYMENT measures announced in the Autumn Budget may have affected attitudes to recruitment by businesses in Wales in Q4 of 2024, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

17% of businesses in Wales increased the size of their workforce over the last three months and 17% also expected their workforce to increase in the next quarter. While over half of the businesses surveyed (59%) expect the size of their workforce to remain constant in the next three months, there was a rise in the number of respondents who foresee that their workforce will decrease, from 15% in Q3 to 24% in Q4.

Fewer businesses in Wales attempted to recruit during the final quarter of the year than in Q3. Of those who did recruit in Q4, 65% experienced difficulties especially when recruiting for professional, managerial, skilled manual and technical roles.

The latest edition of the Quarterly Economic Survey also included questions specific to measures announced in the Budget such as the proposed increase to the National Minimum Wage and National Living Wage from April and whether the changes would impact businesses’ staffing plans, particularly in relation to hiring young people such as graduates, school and college leavers.

Around half of the respondents revealed that the increases to £10 and £12.21 an hour for the minimum wage and living wage respectively would not affect their business. Other businesses in Wales suggested that they would have to either halt recruitment plans, approach recruitment with caution or increase the prices of their services.

Businesses also expressed their hesitation to hire young people, with many reducing the numbers they plan to recruit in 2025.

Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said: “Taxation has become the external factor causing the most concern for businesses in Wales and the measures announced in the Budget such as the increase to employers’ national insurance contributions, combined with rising labour costs and changes to employee rights, have not surprisingly driven those concerns.

“Our Quarterly Economic Surveys show that recruitment remains a persistent challenge for businesses in Wales, and this continued in Q4 with a rise in the number of firms expecting their workforce to decrease and fewer investing in training. One of the impacts of the tax and National Minimum Wage increases looks to be a reduction in expected entry level recruitment this year.

“As businesses review their budget planning in preparation for upcoming changes, more support is needed to tackle barriers to growth such as access to skills development and learning pathways to help companies attract and retain talent with the right skills for their sectors.”

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