Business
Welsh business activity sees renewed expansion in January
Output increases for the first time since August 2024
BUSINSESS activity in Wales experienced renewed growth at the start of 2025, according to the latest Cymru Growth Tracker data from NatWest. The findings indicate a fresh rise in output, with business confidence remaining positive as companies entered the new trading year.
The Wales Business Activity Index—a seasonally adjusted measure of month-on-month changes in output across the manufacturing and service sectors—rose to 50.7 in January. This marked a third consecutive monthly increase and the first expansion in activity since August 2024. The figure was up from 48.9 in December, signalling a marginal improvement in business performance.
Business confidence remained strong, while the decline in employment and backlog levels eased. However, inflationary pressures intensified, with costs and charges rising at historically high rates. Firms sought to pass these costs on to customers, resulting in the sharpest increase in selling prices in ten months.
Economic trends and business confidence
Jessica Shipman, Chair of the NatWest Cymru Regional Board, commented: “January data saw a return to output growth at Welsh businesses, with improvements in the sales environment in specific sectors driving expansion. Firms remained cautious about employment but were confident that demand conditions would improve as the year progressed.
“Although cost burdens remained elevated compared to historical trends, Wales recorded the slowest rise in input prices of the 12 monitored UK regions. However, output charges continued to increase, approaching the UK average, as businesses sought to protect their profit margins.
“The Bank of England’s recent interest rate cut has made monetary policy less restrictive, with further easing expected later in the year.”
Comparison with UK trends
Welsh business activity mirrored UK-wide trends, which saw overall expansion in January. However, only four of the 12 monitored UK regions—London, the North East, the South West, and Wales—registered an upturn in activity. Some firms noted increased demand in specific sectors, though the broader sales environment remained subdued.
While new orders in Wales continued to contract, the rate of decline was weaker than the UK average. Of the ten UK regions reporting lower sales, Wales recorded the slowest decline.
Despite these challenges, business sentiment remained positive, with firms anticipating stronger economic conditions and planned capacity expansions. Of the 12 monitored regions, only the North East, Scotland, and Northern Ireland reported weaker optimism.
Employment and inflationary pressures
Welsh private sector firms reported a fifth consecutive monthly decline in workforce numbers in January. While job losses eased, Wales still experienced one of the sharpest reductions in employment among UK regions, with only the East of England and the West Midlands seeing steeper cuts.
Backlogs of work continued to decline, though at a slower pace than previous months. Firms attributed this to lower new orders, allowing them to process outstanding business more efficiently. The rate of backlog reduction remained quicker than both the UK and long-term series averages.
Meanwhile, input prices surged at the fastest rate since April 2024 due to unfavourable exchange rate movements, rising labour costs, and increased supplier prices. However, Wales recorded the slowest rate of cost inflation among the 12 UK regions.
Output prices followed a different trend, with Welsh firms passing higher costs on to customers at a faster rate. Scotland and Northern Ireland were the only UK regions to report a slower rise in selling prices.
Business
Pub rate relief welcomed but closures still feared
CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills
A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.
The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.
However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.
Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.
“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.
“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”
He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”
Mounting pressure on locals
Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.
But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.
For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.
Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.
In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.
Community role
Campaigners stress that the issue goes beyond beer sales.
Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.
In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.
CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.
The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.
Long-term reform call
CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.
Without change, it warns, the number of closures is likely to accelerate.
Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”
For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.
Business
Haworth Autobody earns Which? Trusted Trader status
Family-run repair centre praised for workmanship, transparency and customer care
A FAMILY-RUN vehicle repair business has been recognised for its high standards of workmanship and customer service after securing national accreditation from Which? as a Trusted Trader.
Haworth Autobody Ltd, based in Haverfordwest, has built a loyal customer base through years of careful, precision repairs and a straightforward, customer-first approach. To earn the endorsement, the company underwent a detailed independent assessment examining not only technical skill and repair standards, but also business procedures, complaint handling systems and verified customer feedback.
The Which? Trusted Trader scheme is widely regarded as one of the most robust consumer approval programmes in the UK. Successful applicants must follow a strict code of conduct and agree to ongoing monitoring, with only a small proportion of businesses achieving the status.
Owner Bobby Haworth said the accreditation reflects values the company has always tried to uphold.
“We’ve always believed that doing the job properly, being upfront with customers and standing by our work is the only way to operate,” he said. “To have that approach independently recognised by Which? means a great deal to us and gives customers extra confidence when they choose us.”
For motorists, the recognition offers added peace of mind at a time when trust and transparency in vehicle repairs are more important than ever. Customers can expect clear communication throughout the process, honest and detailed estimates, and repairs carried out to a consistently high standard.
The workshop handles a wide range of services, including accident damage repairs, paintwork restoration and cosmetic bodywork, with an emphasis on quality workmanship and attention to detail.
Mr Haworth said the endorsement was not a finishing line but a foundation for continued improvement.
“We’re continuing to invest in staff training, modern equipment and new techniques to make sure standards stay high as we grow,” he added.
With consumer confidence increasingly tied to independent verification and proven reliability, the latest recognition reinforces Haworth Autobody’s standing as a trusted name in local vehicle repair.
Haworth Autobody Ltd
Unit 7, Snowdrop Lane, Haverfordwest, Pembrokeshire SA61 1ET
Tel: 01437 779911
Mobile: 07723 011847
Web: www.habody.com
Business
St Clears discount store in closing down sale after chain enters administration
A WELL-KNOWN discount retailer in St Clears is advertising a closing down sale after its parent company fell into administration, raising fresh concerns about the future of another high street store in west Wales.
The Original Factory Shop, which trades from Pentre Road in St Clears, has launched an “up to 30% off” sale as administrators attempt to secure the future of the business.
The chain, which sells clothing, homeware, garden products, toys and everyday essentials, appointed joint administrators Rick Harrison and James Clark of Interpath Advisory last week.
Founded in 1969, the retailer operates 137 stores across the UK and employs around 1,180 staff.
In a statement, Interpath said the company had faced difficult trading conditions common across the high street, including rising costs, weaker consumer spending and increased employment expenses. It added that problems with a third-party warehouse and logistics provider had also disrupted sales.
Despite the administration, the joint administrators say all stores will continue trading for now while options for the business are explored. The company’s online store is set to close.
Rick Harrison, managing director at Interpath and joint administrator, said the retailer had long been a fixture in town centres across the country but had struggled in the current climate.
Over the coming weeks, administrators will review whether parts of the business can be sold or restructured.
However, signage and social media posts from the St Clears branch suggest uncertainty locally, with the store promoting a closing down sale and urging shoppers to “grab a bargain while stocks last”.
The St Clears outlet is one of the last remaining branches in west Wales. Stores in Fishguard, Haverfordwest and Milford Haven closed last year. The Cardigan branch is also understood to be running a similar clearance sale.
The loss of another discount retailer would mark a further blow for smaller town centres already facing reduced footfall and rising costs.
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