Business

Drakeford resists call to exempt children from tourism tax

Published

1 month ago

February 13, 2025

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

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

UK’s largest semiconductor facility secures major investment

Published

17 hours ago

March 27, 2025

Tom Sinclair

Newport factory to support 500 new jobs and play vital role in EV supply chain

WALES is set to benefit from a £250 million investment into its advanced manufacturing sector, as US tech giant Vishay Intertechnology commits to expanding operations at the UK’s largest semiconductor facility in Newport.

The investment is a major vote of confidence in Wales’s industrial capabilities and will further strengthen South Wales’s status as home to the world’s first Compound Semiconductor Cluster. It comes as part of the UK government’s Plan for Change to grow the economy, support skilled jobs, and enhance national resilience in critical sectors.

Chancellor of the Exchequer Rachel Reeves will visit the Newport site today (Thursday, March 27) to formally welcome the investment, which will boost production of Silicon Carbide semiconductors—an essential component in electric vehicles (EVs). These next-generation chips enable faster battery charging, improved energy efficiency, and extended driving ranges.

The development is expected to directly create over 500 high-value, highly-skilled jobs in Newport and support hundreds more across the wider supply chain. The project is backed by the UK’s Automotive Transformation Fund (ATF), which supports innovation and domestic supply in critical technologies such as semiconductors.

Chancellor Rachel Reeves said: “Under this government, the UK is open for business. This is exactly the type of investment that will help us grow the economy, create highly-skilled jobs, and boost opportunity across the country, as we deliver on our Plan for Change to get more money into working people’s pockets.”

The investment follows the Chancellor’s Spring Statement, where she announced a “new era of security and national renewal.” The Office for Budget Responsibility has upgraded growth forecasts for 2026 and beyond, with households expected to be £500 better off per year by the end of this Parliament compared to under the previous government.

The announcement marks a major step in the UK’s ambition to become a global leader in advanced manufacturing. From 2010 to 2023, the UK saw the fastest growth in manufacturing productivity per job among G7 nations.

Business and Trade Secretary Jonathan Reynolds said:
“This is a huge vote of confidence in the Welsh economy and our plans to make Britain the destination of choice for investment in the industries of tomorrow. Vishay’s investment will help secure a domestic supply of semiconductors for our world-leading automotive and clean energy sectors—key drivers of long-term economic growth.”

Secretary of State for Wales Jo Stevens added:
“This massive investment by Vishay and the UK Government is a huge boost for Wales’s world-leading semiconductor industry. It will build on the success of our advanced manufacturing, renewable energy, and defence sectors—creating and supporting hundreds of skilled, well-paid jobs across South Wales.”

Vishay’s Chief Operating Officer for Semiconductors and Chief Technology Officer, Roy Shoshani, said:
“This is an exciting moment and the beginning of our growth journey in the UK. With a skilled workforce and strong government backing through the Industrial Strategy, the UK has an opportunity to lead in advanced semiconductor manufacturing—enhancing economic security and helping deliver Net Zero.”

The investment coincides with the Chancellor’s participation in the Invest in Women Taskforce roundtable in Wales, which has secured over £250 million in funding commitments for female entrepreneurs.

The Automotive Transformation Fund—delivered in partnership with the Advanced Propulsion Centre (APC)—has already helped unlock more than £6 billion in private sector investment for the UK’s transition to zero-emission vehicles. In addition, the Autumn Budget committed over £2 billion to capital and R&D funding for zero-emission vehicle manufacturing over the next five years.

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), said:
“This significant investment in compound semiconductors is a huge contribution to the innovation and advanced technology necessary to drive the future of UK automotive. British-made next-generation semiconductors will create jobs, support supply chains, and enhance the UK’s strategic capabilities.”

Business

Pembrokeshire consultant shortlisted for UK Startup Award

Published

18 hours ago

March 27, 2025

Tom Sinclair

CERI CRICHTON, a Pembrokeshire-based business consultant specialising in supporting charities and social enterprises, has been nominated for the UK Startup Awards in the Business, Consulting & Management StartUp of the Year category.

In just two years, her consultancy business, The Round House, has helped organisations secure nearly £1 million in funding, supporting vital initiatives that drive social change.
Ceri founded The Round House to ensure small charities and social enterprises receive the kind of practical, hands-on business support that larger organisations often take for granted.

Her work focuses on building financial confidence, strengthening governance, and helping organisations plan for long-term sustainability.

Her expertise spans fundraising, business planning, project management, and governance, enabling charities and social enterprises to grow, innovate, and deliver impactful work in their communities.

Among the organisations she has supported are Get The Boys a Lift, SNAP Specialist Play, Pembrokeshire Action for the Homeless, VC Gallery and Pembroke Town Walls Trust, along with many others that benefit from her tailored approach.

Speaking about her nomination, Ceri said: “I’m absolutely thrilled to be shortlisted for this award. At The Round House, its all about collaboration and fresh thinking to help charities and social enterprises do what they do best. There are a lot of pressures facing the third sector right now, and I feel proud to support the hard work of my wonderful clients across South Wales. It’s amazing to see the difference focus and funding can make, and I feel privileged to be part of that work.”

Professor Dylan Jones-Evans OBE, the creator of the UK StartUp Awards, said: “New businesses are the driving force behind any thriving economy, generating employment, pioneering innovation, and contributing to prosperity across the UK. This year’s finalists embody the very best of entrepreneurial spirit – spotting opportunities and, through dedication, skill, and resilience, turning them into thriving ventures that are making a tangible difference. More importantly, all the winners will go on to represent their region at the 2025 UK National StartUp Awards final later this year”.

The UK StartUp Awards was launched to recognise the booming start-up scene across the UK. The Awards celebrate the achievements of entrepreneurs driving change in their industries.
The cohort of finalists will be considered for the regional prizes by a panel of seasoned judges with experience founding or supporting entrepreneurial ventures. The winners from each region will then be invited to the first UK final taking place at Ideas Fest, the Glastonbury for Business festival in Hertfordshire on 12th September 2025.

Ceri’s nomination reflects her outstanding contributions to the non-profit sector, from securing critical funding to guiding organisations toward long-term sustainability.
The awards take place on Thursday, June 19th in Cardiff.

Business

Roadchef installs EV charging points at Pont Abraham Services

Published

18 hours ago

March 27, 2025

Tom Sinclair

ROADCHEF has unveiled six new high-powered 360kW electric vehicle chargers at its Pont Abraham site on the M4 at junction 49.

These latest additions feature 360kW charging capability and CCS connectors, ensuring compatibility with a wide range of electric vehicles. With a charge rate of up to 360kW, drivers can rapidly charge their vehicles, significantly reducing downtime during their journey.

In addition to the charging facilities, visitors to Pont Abraham Services can take advantage of a range of amenities, including 2 hours free parking, free Wi-Fi and a selection of shopping and dining options, making their charging experience both quick and convenient.

A recent report from the UK Parliament’s public accounts committee highlights the disparities in provision of EV charging infrastructure. Roadchef’s expansion at Pont Abraham directly addresses this issue by strengthening Wales’ charging network and adding to the 678 rapid and ultra-rapid charge points available across the country.

With the electric vehicle market continuing to grow, as highlighted by the SMMT, Roadchef’s continued investment in charging infrastructure is a crucial step in future-proofing Britain’s roads.