Business
Welsh economy grows, but job losses and inflation persist

THE WELSH economy showed signs of recovery in February, with business activity rising for the second consecutive month, according to the latest NatWest Wales Growth Tracker. However, challenges remain, as job losses continue, inflationary pressures persist, and new business orders decline.
Business activity expands, but demand falls

The Wales Business Activity Index, which measures monthly changes in the combined output of the region’s manufacturing and service sectors, increased to 51.5 in February, up from 50.7 in January. This marks the strongest growth in six months. However, despite this expansion, new business orders declined for the fourth month in a row, reflecting weak domestic demand and uncertainty surrounding government policies.
Job losses accelerate
While business output has increased, companies remain cautious about hiring. February saw the sixth consecutive month of job losses, with employment levels declining at a sharper rate than in January. The reductions were attributed to voluntary departures not being replaced, redundancies, and changes in labour policies. Despite this, the pace of job cuts in Wales was slower than in the UK as a whole.
Inflation pressures remain
Inflationary pressures persisted in February, with input costs rising at the fastest rate in ten months. Businesses reported higher labour costs and rising import prices as key drivers. In response, many firms increased their prices for goods and services, leading to the sharpest output price inflation in nearly a year. However, inflation levels remain below post-pandemic peaks and lower than the UK average.
Optimism for the year ahead
Despite the challenges, Welsh firms expressed the highest level of confidence in five months, expecting growth to continue over the next year. Business leaders are optimistic about expansion, citing strategic growth initiatives, productivity improvements, and new customer acquisitions.
While Wales’ economy is showing early signs of recovery, persistent job losses, sluggish demand, and inflation continue to pose risks. The coming months will be crucial in determining whether the region can sustain its growth momentum or if economic uncertainty will drag it down once again.
Business
Former Haverfordwest chapel school building could be turned into flats

PLANS to convert the Sunday School building of Haverfordwest’s former Wesleyan Chapel, once the site of a regular place for preaching by John Wesley himself, to six flats have been lodged with Pembrokeshire County Council.
An application to council planners, which has no clear details about the applicant, listing Vitaly + Partners ltd as either the applicant or the agent, seeks the conversion of the Chapel Lane building.
Accompanying documents say Haverfordwest was a regular place of preaching for John Wesley, the founding father of Methodism, first visiting in 1763, with the first chapel built in 1772. By 1781 there were 60 members in the town, the largest congregation in the Pembrokeshire Circuit.
The chapel was rebuilt in 1818 and enlarged in 1835; the adjoining schoolroom built in 1874, with further chapel works in 1880-1.
The chapel closed in 1985 and the interior was stripped for use as an antiques showroom.
A heritage statement accompanying the application says: “The works on internal alternations of former school building started in 2014 after planning permission was approved. Then other records show that works has re-started in 2020. There are previous building inspector assessment notes available for more details. Since there has been numerous of owners and works started again in 2024.”
It adds: “The main factor to support proposed development is in fact it was approved few times in the past. The works already began, and the original layout and external elements are already altered.
“The building was abandoned and not maintained in any way. It did not look pretty and had a negative impact on the residents of the town. The building has had its original use adopted numerous of times to suit the needs of the particular time period and serve the town accordingly.
“The maintenance work to the building has already shown how much cleaner and more beautiful the building appearance became and it has had good impact on the residents who shared their views on social media talking positively about the renovation works on the building.”
The application will be considered by county planners at a later date.
Business
Halfords offering interviews to all staff affected by ATS closures in Wales

HALFORDS extended an offer of interviews to all members of staff affected by the closure of the ATS Euromaster branches in Brecon, Pontypridd and Llanelli
This follows ATS Euromaster’s recent announcement that 86 of its service centres are set to close.
With 639 garages nationwide, including branches in these affected towns, Halfords is one of the UK’s largest employers of automotive technicians. The company services, maintains, and repairs vehicles for 1,400,000 customers annually.
The UK is currently experiencing a shortage of qualified automotive technicians, with the Institute of the Motor Industry (IMI) estimating 20,000 vacancies in the sector.
Halfords remains committed to creating rewarding career pathways, offering opportunities for qualified technicians looking to develop new skills—such as EV servicing—as well as young people entering the industry through apprenticeships.
In addition to supporting ATS employees, Halfords is also stepping in to help customers affected by the closures, ensuring they continue to have access to trusted and competitive automotive services.
Support for ATS customers
To assist those whose bookings are impacted by ATS branch closures, Halfords garages will prioritise MOT and other service bookings originally made with ATS wherever possible, helping customers avoid delays and ensuring their vehicles remain roadworthy.
“We are pleased to be working in partnership with ATS to explore employment opportunities for affected colleagues, while also ensuring that motorists in this part of Wales continue to have access to competitive, convenient, and trusted automotive services,” said Chris Rose, Halfords. Divisional Director
Business
Fishermen upset over financial impact of Castlemartin Range closures for 2025

COMMERCIAL fishermen and sea users have voiced their anger over the latest military range activity schedule for Castlemartin Range in 2025, which will see significant restrictions on access to coastal waters.
The schedule, released by the Defence Infrastructure Organisation (DIO), confirms that military exercises will take place across June, October, and November, with extended firing times drastically limiting the ability of commercial and recreational vessels to navigate the affected sea areas.
According to Huw Baker, Chair of the Freshwater East Boatmen & Fishermen’s Association, the closures will have a devastating financial impact on local inshore fishermen who rely on these waters for their livelihoods.
Mr Baker said: “None of the fishers have been contacted about these increased range activities or the sea area closures. There has been no consultation to discuss alternative access routes that would allow us to continue earning a living. The military has effectively blocked off access during prime fishing months, leaving fishermen struggling to stay financially afloat.”
Under the new schedule, the sea areas off Castlemartin will only be accessible during limited hours—between 3:00am and 8:00am, and again between 6:00pm and 8:00pm—making it near impossible for many commercial fishers to operate efficiently.
“This decision comes at a time when the cost of living is hitting everyone hard,” Mr Baker added. “With weather and tides already limiting access, these additional restrictions from Castlemartin and Manorbier firing ranges mean we’re left with barely any opportunities to work.”
Mr Baker is calling for an urgent meeting with range management to discuss the concerns of the fishing community and explore potential compromises that would allow local businesses to continue operating.
The Herald has contacted the Ministry of Defence for comment.
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