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Welsh business confidence rises in February

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BUSINESS confidence in Wales increased by three points to 24% in February, according to the latest Business Barometer from Lloyds Bank.

While optimism in firms’ own trading prospects fell by three points to 31%, confidence in the broader economy climbed by ten points to 18%. Taken together, this resulted in a headline confidence reading of 24%, up from 21% in January.

A net balance of 20% of businesses in Wales also indicated plans to expand their workforce over the next year, marking a 15-point rise from the previous month.

Looking ahead to the next six months, Welsh businesses highlighted key areas for growth. These included diversifying their offerings by launching new products or services (42%), investing in staff training and development (36%), and incorporating new technology such as automation or artificial intelligence (34%).

UK confidence at six-month high

Across the UK, business confidence saw a significant increase of 12 points in February, reaching 49%—its highest level since August 2024.

Optimism in trading prospects rose by six points to 57%, while confidence in the wider economy surged by 18 points to 42%.

The North East emerged as the most confident region, recording 69%, followed by the North West and East of England, both at 61%.

Sector growth across the board

All four surveyed sectors reported double-digit increases in confidence. Manufacturing posted the largest improvement, rising by 13 points to 51%, while construction saw a 14-point increase to 50%. Retail confidence climbed by 11 points to 51%, and the services sector grew by 10 points to 48%.

Within the services sector, hospitality firms reported a particularly strong rebound, with sentiment reaching its highest level in several months. Confidence levels varied, with the services sector seeing its strongest position in four months, while manufacturing reached a seven-month high.

Expert insights

Dave Atkinson, regional director for Wales at Lloyds Bank, said: “It’s encouraging to see Welsh business confidence return to growth and more firms planning to hire—something that benefits both their operations and local communities.

“We’ll continue to support Welsh companies as they drive forward with their growth strategies and capitalise on new opportunities.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, added: “The rise in business confidence demonstrates the resilience of UK businesses and their ability to navigate challenges such as rising costs and uncertainty.

“Increased optimism and improved trading prospects are encouraging businesses to invest in workforce growth and upskilling. This aligns with the expectations set at the beginning of the year, where 70% of businesses anticipated an increase in turnover for 2025.

“To maintain this positive momentum, businesses must continue to innovate and adapt, ensuring they remain competitive and resilient in the face of future challenges.”

 

Business

New facilities at Haverfordwest Target Shooting Club agreed

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A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.

A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”

It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”

It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.

It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.

“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”

It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”

The application was conditionally approved by planners.

 

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Business

St Davids GP surgery plans lodged with national park

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PLANS to convert a former GP surgery in Pembrokeshire’s only city to a home and holiday let have been lodged with the national park.

In an application to Pembrokeshire Coast National Park, Alice and Danjal Joensen, through agent Oochitecture, seek permission for a change of use of the ground floor of the former GP surgery, Eryl Mor, 36, New Street, St Davids, merging with the existing first-floor apartment to create a larger single dwelling house, along with the creation of an attached short-term holiday let.

The GP surgery is currently vacant, following its closure in October 2024 after new partners could not be secured.

A supporting statement says, prior to being a GP surgery, the two storey element was a single dwelling house.

It adds: “The house would consist of an open plan kitchen-living space to the ground floor, along with a study, lounge and utility room. The first floor includes four double bedrooms with ensuite and main bathroom.

“The new unit of accommodation would form a holiday-let with two double bedrooms, shower room, and an open plan kitchen-living space.

“The GP surgery is currently vacant, following its closure in October 2024 after new partners could not be secured, therefore the proposed change of use will provide a viable long-term future use for the property.”

It says minimal external alterations are proposed to the property with existing entrances utilised for both the main house and holiday-let, adding: “The existing concrete ramp to the front elevation will be retained with proposed works including extending the upper level and steps to provide a connection to the front door, allowing for accessible entrance to the property.

“There will be no changes to vehicular or pedestrian access, with the site continuing to be accessed via the existing entrance from New Street. Parking will be provided for the main house and holiday-let on the existing tarmac driveway off New Street.”

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

 

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Business

Cardigan bakery named among best in UK

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A CARDIGAN bakehouse has been named among the best bakeries in the UK as interest in “bakery tourism” continues to rise.

Bara Menyn, a small family-run bakehouse tucked away in a side street in Cardigan, has been highlighted by travel experts at holidaycottages.co.uk as one of the bakeries worth making a trip for.

The name Bara Menyn means “bread and butter” in Welsh, and the bakery has built a reputation for imaginative bakes, pizzas and seasonal produce.

Laura Kerslake, regional expert for Wales, said: “Bara Menyn is how you say ‘bread and butter’ in Welsh and the name of the small family bakehouse that is hidden down a side street in Cardigan, West Wales.

“It’s open three days a week so that the owners can fit the bakehouse around family life and their careers as artists.

“The family’s artistic flair can be seen in all the imaginative fillings and toppings on the bakes and pizzas served, which are also made using local, seasonal produce.”

The listing comes as the UK sees growing interest in independent bakeries, with spending on bakery goods reported to have risen by six per cent from 2025 to 2026.

Research also suggests that many people are now willing to travel for regional food experiences, from traditional cakes to artisan bread and pastries.

Two other Welsh bakeries were also highlighted: Little Valley Bakery, which has sites in Mumbles and Brynmill, and was recently named in the Good Food Guide’s 50 Best Bakeries 2026; and another Welsh entry included in the travel company’s wider list.

For Cardigan, the recognition adds to the town’s growing reputation as a destination for independent food, drink and creative businesses.

 

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