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Business

Drakeford resists call to exempt children from tourism tax

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MARK DRAKEFORD resisted calls to exclude under-18s from the Welsh Government’s plans for a tourism tax from 2027.

The finance secretary told the Senedd’s finance committee that exempting children from the levy as in some other European countries would lead to a “significant fall” in the tax take.

He said: “I see that you have heard from a range of voices who argue that particular groups ought to be excluded from the levy…. This is a broad-based tax with a low charge – if you narrow the base, the only way you can sustain the take from the tax is to put the charge up.”

Prof Drakeford said taking under-16s out of the £1.25-a-night levy would see the estimated £33m revenue fall to £21m, “eroding the chances that the levy will be of any use.”

He stressed: “If the committee wants to argue for excluding children from the levy, you are arguing for a higher charge on the people who are left – you can’t have both.”

Prof Drakeford pointed out: “Children buying sweets pay VAT. Children are not excluded by the virtue of being children from the taxation system.”

He defended the visitor levy bill after a report found the levy could lead to between 250 and 730 job losses and cost the Welsh economy £16m to £47m a year.

The finance secretary was questioned about the economic impact assessment by Calvin Jones, a professor at Cardiff University, as he gave evidence on February 12.

He said: “Professor Jones’ report deals with a set of complex considerations. It has, inevitably, to make a series of assumptions and deal with a series of uncertainties. It assumes, for example, that all 22 local authorities have adopted the levy from day one.”

Rejecting suggestions the report undermines the case for a levy, Prof Drakeford told the committee some witnesses exclusively referred to figures for a worst-case scenario.

He said: “I did think there were some witnesses who came before you who presented Prof Jones’ report as though it was a set of predictions rather than a range of possibilities.”

Prof Drakeford added: “Even if the impact was at the top end, you are talking about a few hundred jobs in an industry that employs over a million people…. This is not an industry, I think, that will struggle to accommodate the impact of the levy.”

Pressed about the timing with the sector still recovering from the pandemic, he said: “When some organisations have said to you ‘oh, not now’, what they really mean is ‘not ever’.”

Prof Drakeford stressed “There’s a long lead in, this is not an idea that has suddenly been put in front of the sector and there’s a long path in front of us as well.”

He said the earliest any council could introduce a local levy would be April 2027, adding that he expects only a modest number of local authorities to do so initially.

Peredur Owen Griffiths, who chairs the committee, raised the “cumulative” effect of policies such as national insurance and the 182-day rule for holiday lets to qualify for business rates.

South Wales East MS Peredur Owen Griffiths
South Wales East MS Peredur Owen Griffiths

Prof Drakeford replied: “We’re familiar with the argument about comparing apples and pears but that list, I think, is the full fruit salad because they’re all completely different issues.”

He told the committee many microbusinesses in the tourism sector will be no worse off after the UK Government’s decision to increase employer national insurance contributions.

Asked about introducing a day-visitor levy rather than an overnight tax, the former First Minister said: “I didn’t want to see the search for the perfect driving out the possible.”

Prof Drakeford rejected suggestions that families could upend their holiday plans over the proposed £1.25-a-night levy, arguing it will have a marginal impact.

He said: “There are so many other factors that will have an impact both on costs and people’s decision-making which will loom far larger than the visitor levy.

“On the whole, what we hear from the continent where this is commonplace is that visitor levies are broadly invisible to the end user.”

Prof Drakeford explained the bill would require councils to consult on whether to adopt a levy then report annually on the use of the revenue raised.

He told committee members: “The idea that you could easily slide a bit of that money away towards something else, I don’t think will be easy.”

Prof Drakeford said the visitor levy bill, which would create a fee-free register of providers, will be followed by a second bill on licensing accommodation in the autumn.

Business

Major housing development plans submitted for Broad Haven

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PLANS for a development of 76 homes in a Pembrokeshire seaside village have formally been submitted to the national park.

In an application to Pembrokeshire Coast National Park, Millbay Homes, through agent Asbri Planning, seeks permission for the development of 76 homes and associated works on land East of Marine Parade, Broad Haven, near Haverfordwest.

The proposal seeks to build 10 one-bed properties; 20 two-bed, 32 three-bed, 10 four-bed, and four five-bed properties, with Millbay Homes have been liaising with the authority`s housing department about the requirement for affordable housing at the site, the authority favouring a rate of some 34 per cent affordable.

The site itself is allocated for up to 87 residential dwellings.

The applicants say the scheme will “lead to the creation of a high-quality and attractive place to live and will contribute to creating a distinct sense of place”.

A supporting statement adds: “Rather than imposing a rigid, flat layout, the homes are arranged to follow the natural contours of the land, stepping up and down in response to the site’s slopes.

“This approach minimizes the need for extensive excavation and preserves much of the natural landscape. It also ensures that each home has a unique relationship with its surroundings, with most properties benefiting from stunning sea views due to their elevated positions.

“By embracing the site’s topography, the development not only minimises its environmental impact but also creates a visually appealing and varied streetscape that feels integrated into the natural landscape rather than imposed upon it.”

The scheme has been subject to revisions following discussions with planners, moving from an initial increase from 62 to 77 homes, now dropped to 76 to provide an ‘informal open space’ “designed to meet the planners’ request and to offer a communal area where residents can enjoy outdoor activities and relaxation in a natural setting”.

The formal pre-application consultation ran up to late January of this year.

The statement stresses: “The proposed residential housing scheme represents a carefully considered response to the village’s architectural heritage, challenging topography, and coastal environment.

“Through a thoughtful, collaborative design process, incorporating comments and feedback from the planning officers and public, the development will create a vibrant, sustainable community that offers diverse housing options, maximises sea views, and integrates seamlessly with its surroundings.”

The application concludes: “The ambition for the site is to create a contemporary development of liveable, affordable homes within Broad Haven which takes advantage of the site’s seaside location, in accordance with the council’s housing allocation within the Local Development Plan. 

“In light of the above, it is concluded that the proposal fully accords with both national and local policies and there are no material considerations which should prevent the planning application from being determined in accordance with the relevant planning policy framework.”

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

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Business

Help to Buy Wales extended – new homes in Haverfordwest available through scheme

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THE WELSH GOVERNMENT has extended the Help to Buy – Wales scheme until September 2026, offering new opportunities for buyers to secure a property at the Augustus Grange development in Haverfordwest with financial assistance.

The scheme enables eligible buyers to purchase a new-build home valued up to £300,000 with just a five per cent deposit. The remaining amount is covered by a 75 per cent mortgage and a 20 per cent shared equity loan, which is interest-free for the first five years.

Five-star housebuilder Lovell Homes, which is delivering the development in partnership with Pobl Group, is encouraging potential buyers to explore the scheme’s benefits. Located off St David’s Road, Augustus Grange comprises 115 two and three-bedroom homes and lies just six miles from the Pembrokeshire Coast National Park.

Unlike some support schemes, Help to Buy – Wales is open not only to first-time buyers but also to existing homeowners looking to move.

A number of three-bedroom properties are currently available at the site, including the popular Lambourne and Lansdown designs.

Suzie Hewitt, regional sales director at Lovell Homes, said: “Help to Buy – Wales is a brilliant initiative and we’re delighted that it has been extended to 2026. For many, buying a home is the biggest financial step they’ll take, and this scheme makes that step more accessible.

“We’re offering a range of high-quality homes under £300,000 at Augustus Grange – perfect for first-time buyers, growing families, and those looking to rightsize. We encourage anyone interested to contact our sales team.”

Haverfordwest, the historic county town of Pembrokeshire, offers a mix of heritage and modern amenities. With its 12th-century castle, riverside walks along the Western Cleddau, a selection of shops and restaurants, and good transport links, it’s an attractive location for both families and commuters.

The Augustus Grange marketing suite is open daily from 10:00am to 5:00pm. For further information, visit newhomes.lovell.co.uk/developments/augustus-grange-haverfordwest or call 01437 468024.

Terms and conditions apply. Full details on the Help to Buy – Wales scheme can be found at lovell.co.uk/offers/help-to-buy-wales.

Lovell Homes recently received a Gold award for customer service from In-house Research, with 93.6 per cent of South Wales and West customers saying they would recommend the company to friends and family.

Follow Lovell Homes:

  • Facebook: facebook.com/lovellhomes
  • Instagram: @lovell_homes
  • LinkedIn: @LovellPartnershipsLtd
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Business

Big changes made to major Cosheston solar farm development

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AMENDMENTS to a previously granted scheme for a south Pembrokeshire solar farm by using higher specification panels which would actually see less land covered have been approved by county planners.

Last year, plans for a nine-megawatt solar farm at West Farm, Cosheston, near Pembroke Dock by James Wallwork of One Planet Developments Limited were approved by Pembrokeshire County Council.

The applicants said the scheme would generate enough power for 2,500 homes.

The scheme was initially recommended for refusal before a later recommendation for approval at last March’s planning committee; the scheme supported by Cosheston Community Council, which said the plans would be a natural rounding-off of the site, with no detrimental impact as it would neighbour the existing solar farm.

A supporting statement, through agent Mango Planning & Development Ltd, said: “The proposed development would contribute circa 9,337,000 KWh of renewable electricity to the local area, which will typically produce enough green electricity a year to power about 2,500 homes.

“The proposed development is for a temporary 40-year timescale and will be fully reinstated at the end of its operational life. There will be no loss of agricultural land.”

After last year’s approval, the applicants had asked for a change of planning conditions.

A supporting statement accompanying the amendment request says: “Subsequent to the grant of consent, the applicant has been advised that the solar panels originally proposed are no longer available. It is necessary, therefore, to substitute these with an alternative type.”

It says the proposed alternative panels would be slightly larger in size but “as a consequence of the improved specification of the proposed panels, a reduced site coverage is required to achieve the originally agreed output,” adding: “In particular, it is not now necessary to provide arrays in the small field at the east of the application site.”

The proposed amendments have been approved by planning officers.

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