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Welsh beer and pub sector injects over £1.5 billion into economy

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Industry warns of financial strain as WBPA urges Senedd for urgent business rates reform

WALES’ beer and pub sector contributes more than £1.5 billion to the national economy and supports over 68,000 jobs, but rising costs are putting its future at risk, the Welsh Beer and Pub Association (WBPA) has warned.

The WBPA’s inaugural State of the Nation 2025 report highlights the sector’s crucial role in providing local employment, boosting tourism, and sustaining rural communities. However, at the report’s launch at the Senedd on Wednesday (Jan 22), the association cautioned that ongoing financial pressures are threatening its viability.

Rising closures and financial disparity

Wales has experienced higher pub closures than the rest of the UK, with 6.5% of pubs shutting down between 2018 and 2023, compared to 4.6% in England and 3.9% in Scotland. The WBPA attributes this to a combination of factors, including lower business rates relief, which leaves Welsh pubs an average of £6,000 worse off annually compared to their English counterparts.

The Bridgend Inn, a former pub in Haverfordwest, now shut for good
The Starboard in Milford Haven, now closed, was once a popular pub

While the rate of closures slowed slightly in 2024, the impending increase in National Minimum Wage and National Insurance Contributions is projected to cost the sector over £650 million, adding further strain on an already fragile industry.

Call for urgent reform

The WBPA is calling on the Senedd to introduce permanent business rates reform to provide certainty for pub operators, mitigate soaring costs, and phase in new employment charges set to take effect in April. It is also advocating for beer duty to be reduced to align with EU averages.

Emma McClarkin, CEO of the WBPA, said: “The beer and pub sector is a vital Welsh industry that so many people rely on for their livelihoods. It is economically and socially significant, providing jobs for young adults and those seeking flexible work.

“Our industry pours more than a billion into the economy and is crucial for jobs, communities, and tourism. However, with pubs making just 12p profit per pint on average due to high business costs, the sector is in a fragile state.

“If the Senedd supports the industry, our sector and its workforce can continue to boost the economy, employ more people, and remain at the heart of Welsh communities.”

Preserving a Welsh tradition

The WBPA is urging policymakers to collaborate with the industry to create a sustainable economic framework that minimises additional costs and regulatory burdens. It argues that such measures would allow pubs and breweries to plan financially and continue operating across the UK.

Nick Payne, Chairman of the WBPA and Managing Director of S.A. Brains, said: “Our sector has a rich history and unique character that sets it apart from the rest of the UK. Over the past decade, we have seen a surge in local breweries, and the past year has seen a slowdown in pub closures.

Nick Payne, Chairman of the WBPA and Managing Director of S.A. Brains

“However, we cannot ignore the fact that margins are still tight and being squeezed further. Many operators are struggling with rising costs, and the national economic outlook remains uncertain.

“We need policymakers in Cardiff Bay and Westminster to reassess their policies, particularly their cumulative impact, and work with us to establish regulatory and economic frameworks that will keep our breweries and pubs at the heart of local communities and economies.”

 

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Tudor Glen Caravan Park Pembrokeshire planning call

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A CALL for a Pembrokeshire caravan site to be allowed static caravans in lieu of touring ones, which the applicant says was allowed back in 1988, has been submitted to the national park.

In an application to Pembrokeshire Coast National Park, Keith Stevens of Tudor Glen Caravan Park, Jameston, through agent Lambe Planning & Design Ltd, seeks a certificate of lawfulness of an existing use of the site to establish the status of a 1988 planning permission.

Essentially what that means is the applicant is seeking confirmation of details of that permission as to whether it includes static or touring caravans.

A supporting statement says: “Tudor Glen Caravan Park is a long-established family owned and operated Holiday Park. The Park extends to approximately six acres and caters for families within static caravans, touring caravans, motorhomes and tents.

“The Park is exceptionally well run and achieved the 2025 runner up award for Best Family Campsite South Wales. The Park has a range of modern purpose-built facilities including a heated swimming pool, laundrette, dedicated play area, games room and full amenity facilities.”

Covering the 1988 approval of removing two previous conditions connected to the site, granting permission for up to 50 caravans and occupancy of March 1 to January 9, it says: “It does not stipulate that the caravans must be removed from the site during the ‘close period’ as would be the case if the consent related to touring caravans,” adding: “It is therefore clear that the intentions of that planning application and the consent granted relates to the siting of up to 50 caravans and not specifically touring caravans.

“If that consent were to be partially restricted to touring, a touring condition would have been imposed and / or a condition requiring that the caravans must be removed from the site during a close period – it doesn’t.”

It concludes: “Whilst the park has been operated on the basis of providing both Static Caravan and Touring Caravan Pitches, [the 1988] Planning Approval clearly gives permission for any type of caravan which complies with the Legal Definition of a Caravan.

“That permission does not restrict the type of unit to either static or touring caravans and does not restrict the layout of the holiday park it is therefore concluded that [the 1988 permission] allows for the siting of any unit which complies with the legal definition of a caravan, and does not restrict the layout or location of the units.

“The applicant therefore seeks confirmation from the LPA to that effect via this Certificate of Lawful (proposed) Use application.”

The application will be considered by park planners at a later date.

 

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Pembrokeshire Lydstep Beach Village development refused

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A CALL for an extra sign advertising a Pembrokeshire holiday park, adding to exiting unauthorised ones, which planners say would create “visual clutter and intrusion” and a distraction to drivers, has been refused.

In an application to Pembrokeshire Coast National Park, permission was sought, through Lakeside Signs Limited, for an additional sign advertising Haven’s Lydstep Beach Village, near Tenby, the sign proposed for North Lodge where the holiday park joins the main road.

Pembrokeshire County Council’s highways authority raised no concerns regarding the specific location of the sign, but said “there remains a broader concern regarding the cumulative impact of signage along this section of highway,” adding: “The increasing proliferation of signs in this location has the potential to create a visually cluttered environment, which may distract drivers and, in turn, give rise to road safety implications.”

A Park officer report recommending refusal said: “Currently, there are eight flagpoles, one A-frame banner type sign, one pole mounted panel sign, and a further panel sign, located behind the stone wall on the western side of the park’s entrance. None of these advertisements have the benefit of advertisement consent.”

It added: “The increasing number of signs in this location has the potential to create a distraction to drivers, which may result in road safety implications. In addition, the proliferation of signage would create clutter that would result in visual intrusion in this countryside location affecting amenity. As such, the recommendation is to refuse.”

It went on to say: “Whilst it is not deemed that the proposed advertisement would result in harm being caused to the specific special qualities of this area, there are concerns that the display of this advertisement would, along with the remainder of the advertisements, which are unauthorised, result in a proliferation of advertisements, which in turn would cause visual clutter and intrusion.

“This is especially problematic in a countryside location where development is strictly controlled. Should the existing signage be consolidated and rationalised, the Authority may support the proposed sign, however, currently, any additional signage would not be deemed appropriate.”

The application was refused on the grounds that it would, along with the exiting signage, “result in visual clutter and intrusion which would detract from the visual amenity of this countryside location, and would result in potential distraction to drivers, which in turn would rise to road safety implications”.

 

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The Cheesecake Guy store could be coming to Saundersfoot

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SAUNDERSFOOT’S Coal Building interpretation centre could soon host the third store for Welsh cheesecake business The Cheesecake Guy Ltd, in plans before the national park.

In an application to Pembrokeshire Coast National Park, Craig Taylor of Merthyr Tydfil-based The Cheesecake Guy Ltd seeks a change of use of part of Saundersfoot’s Cambrian Terrace Coal Building interpretation centre to create a small retail unit.

On its website, The Cheesecake Guy says of its business and products: “Established in 2019, The Cheesecake Guy is all about delivering indulgent, handcrafted cheesecake desserts with a twist. While we offer a range of sweet treats, our specialty — and customer favourite — is the signature cheesecake jar.

“Made with quality ingredients and packed with rich, creamy layers, our jars are the perfect dessert for any occasion. Whether you’re treating yourself or sharing with others, The Cheesecake Guy brings a spoonful of happiness to every bite.”

While no supporting statement has yet been published for the Saundersfoot proposal, the application says the scheme would employ two full-time members of staff, operating 10am-6pm Mon-Sat, and 10-5 on Sundays and bank holidays.

It says the proposed site is currently a mixed-use retail and gift shop, having previously been used as office space.

It adds: “This is a space within a building that is still trading, the space we are wanting a change of use was last used by Persimmon Homes as an office space.”

Of the scheme itself it says it will involve “retail sales of pre-prepared desserts and merchandise,” adding there will be “no on-site manufacturing or heavy processing,” with “equipment limited to display fridges and freezers”.

If approved, the Saundersfoot site would be the third outlet for The Cheesecake Guy, with sites in Merthyr, and, more recently, Newport Market.

After that store opened following redevelopment of Newport’s Victorian market, Craig Taylor, of The Cheesecake Guy, said: “We are very excited to be part of the new development in Newport Market alongside some other amazing small businesses.

“We feel this is definitely the next step in the right direction after our Merthyr Tydfil store taking off so well.”

For its Newport site, The Cheesecake Guy says: “We specialise in creating a wide variety of cheesecake desserts that cater to all tastes. Our menu features popular favourites that have won the hearts of many, alongside exciting new creations designed to keep your taste buds satisfied.

“Whether you’re a classic cheesecake lover or an adventurous foodie, we promise a cheesecake experience like no other. Each cheesecake is made with the utmost care, ensuring a rich, creamy texture and a burst of flavour in every slice (or jar!).”

The Saundersfoot proposal will be considered by park planners at a later date.

 

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