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Rural operators ‘petrified’ by bus reforms

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RURAL bus operators are petrified by the Welsh Government’s plans to introduce a London-style bus network in Wales, the industry warned.

Scott Pearson, chair of the Coach and Bus Association Cymru, gave evidence on the bus bill which seeks to bring buses into public control, with operators bidding for contracts.

Mr Pearson, who has been running bus services for 25 years, cautioned against a regional approach or modelling reforms on other franchise systems such as Greater Manchester’s.

“That’s a massive population in a big urban area,” he told the Senedd’s infrastructure committee. “Wales is not like that: you’ve got three big cities in the bottom, one at the top and, in between, a whole load of hills and mountains.

“The rural aspect to this, our members – the SME [small- and medium-sized enterprise] membership – are petrified about this bill.”

Expressing concerns about smaller operators being squeezed out, Mr Pearson told the meeting on May 15: “‘Petrified’ is the right word to use because we don’t have detail.”

Aaron Hill, director of the Confederation of Passenger Transport Cymru, agreed: “Scott is right, buses are inherently a very local service and respond to very local needs. We would be missing a trick if local authorities didn’t have a bigger role in how we shape the network.”

Mr Hill warned of significant barriers for SMEs, with six-figure costs in some parts of the UK to bid for franchises and regulatory hurdles to clear to even take part in the procurement.

“We need, if we’re going to do it successfully in Wales, to overcome that,” he said.

Mr Pearson stressed: “If you hand a guy who’s got ten buses a 150-page document for the franchise and say ‘do you want this?’… they’re not going to do it, they’re going to sell up.”

Mr Hill cautioned a change in the regulatory model will not guarantee success, warning the bill does little to take buses out of traffic, coordinate roadworks nor speed up journey times.

He said: “The bill doesn’t actually change the economics of running bus services in Wales – so many of the challenges that the network faces today, the network will still face on the other side of re-regulation.”

Raising examples of other franchised networks, Mr Hill said London has historically had a gap of around £700m between the cost of the service and the income generated.

He said the gap in Greater Manchester, which took control of buses in 2023, is about £250m and the Welsh bill exposes the network to similar affordability challenges.

Mr Hill told Senedd Members: “We think the bill only lends itself to one type of franchise, a gross-cost franchise – that is the franchise that carries the most risk for taxpayers.”

Mr Pearson warned the public purse will shoulder all the risk under the bill as drafted.

Mr Hill warned a regulatory impact assessment (RIA) published alongside the bill was insufficient, with “at least” £200m of additional costs not factored in.

“That feels to me to be a significant question that hangs over the viability of franchising,” he said, pointing to examples including national insurance tax hikes and staff costs.

In written evidence, the Confederation of Passenger Transport Cymru warned: “We are concerned that the assessment of the financial implications are overly optimistic and based on weak assumptions and unrealistic forecasts.”

Mr Pearson similarly criticised a lack of detail in the bill and impact assessment, making it difficult to understand the costs and challenges.

He said: “If we’re trying to do the same with the current funding, and adding a whole load of costs into it from TfW [Transport for Wales], for instance, it’s just simply not going to work because you can’t get more for less.”

Mr Pearson added: “It talks about patronage increase in the RIA – that’s a big, big faux pas because nothing in this bill… looks at the main cause… which is congestion.

“It’s not dealt with at all. I think we’ve got a once-in-a-lifetime opportunity here and we’re not… addressing the main problems that we currently face as operators.”

Mr Hill added: “There’s a real risk here: we’ve built up public expectation, in the same way… as with the railways, then delivery or significant improvement doesn’t follow for a long time.”

Asked about the scope of the bill, with councils rather than ministers remaining responsible for school transport, Mr Pearson questioned the logic of separating the two.

He raised the example of a rural operator, which provides bus services and school transport, missing out on a franchise, asking: “What happens to the home to school, the local authority picks it up? That’s a whole… different ball game… I don’t think that is going to work well.”

Business

Independent brewers join call for business rates relief as pub closures feared

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INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.

The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.

The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.

Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.

New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.

The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.

Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.

“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.

“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”

Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.

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Business

Cosheston Garden Centre expansion approved by planners

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PLANS to upgrade a garden centre on the main road to Pembroke Dock have been given the go-ahead.

In an application to Pembrokeshire County Council, submitted through agent Hayston Developments & Planning Ltd, Mr and Mrs Wainwright sought permission for upgrade of a garden centre with a relocated garden centre sales area, additional parking and the creation of ornamental pond and wildlife enhancement area (partly in retrospect) at Cosheston Garden Centre, Slade Cross, Cosheston.

The application was a resubmission of a previously refused scheme, with the retrospective aspects of the works starting in late 2023.

The site has a long planning history, and started life as a market garden and turkey farm in the 1980s, and then a number of applications for new development.

A supporting statement says the previously-refused application included setting aside a significant part of the proposed new building for general retail sales as a linked farm shop and local food store/deli in addition to a coffee bar.

It was refused on the grounds of “the proposal was deemed to be contrary to retail policies and the likely impact of that use on the vitality and viability of nearby centres,” the statement said, adding: “Secondly, in noting that vehicular access was off the A 477 (T) the Welsh Government raised an objection on the grounds that insufficient transport information had been submitted in respect of traffic generation and highway safety.”

It said the new scheme seeks to address those issues; the development largely the same with the proposed new garden centre building now only proposed to accommodate a relocated garden centre display sales area rather than a new retail sales area with other goods, but retaining a small ancillary coffee bar area.

“Additional information, in the form of an independent and comprehensive Transport Statement, has now been submitted to address the objection raised by the Welsh Government in respect of highway safety,” the statement said.

It conceded: “It is acknowledged that both the creation of the ornamental pond and ‘overspill’ parking area do not have the benefit of planning permission and therefore these aspects of the application are ‘in retrospect’ and seeks their retention.”

It finished: “Essentially, this proposal seeks to upgrade existing facilities and offer to the general public. It includes the ‘relocation’ of a previously existing retail display area which had been ‘lost’ to the ornamental pond/amenity area and to provide this use within the proposed new building and moves away from the previously proposed ‘farm shop’ idea which we thought had merit.

“This revised proposal therefore involves an ‘upgrading’ rather than an ‘expansion’ of the existing garden centre use.”

An officer report recommending approval said that, while the scheme would still be in the countryside rather than within a settlement boundary, the range of goods sold would be “typical of the type of goods sold in a garden centre and which could be sold elsewhere within the garden centre itself,” adding: “Unlike the recent planning application refused permission it is not intended to sell delicatessen goods, dried food, fruit and vegetables, pet products and gifts.”

It added that a transport statement provided had been reviewed by the Welsh Government, which did not object on highway grounds subject to conditions on any decision notice relating to visibility splays and parking facilities.

The application was conditionally approved.

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Business

Tenby Poundland site could become retro gaming lounge

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TENBY’S former Poundland and Royal Playhouse cinema could become a retro computer gaming lounge, plans submitted to the national park hope.

Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby.

Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.

The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.

In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former Gatehouse (Playhouse) Cinema, White Lion Street, most recently used as a Poundland store.

The signage plans form part of a wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front facade, a supporting statement through agent Asbri Planning Ltd says.

“The subject site is located within the settlement of Tenby along White Lion St. The site was formerly the Gatehouse Cinema and currently operates as a Poundland discount store, which closed on October 18.”

It adds: “This application forms part of a wider scheme for the change of use to the former Gatehouse Cinema. Advertisement consent is sought for a non-illuminated aluminium composite folded panel that will be bolted onto the front façade of the proposed building, in replacement of the existing signage (Poundland).”

It stresses: “It is considered that the proposed advertisement will not have a detrimental impact on the quality of the environment, along with being within a proportionate scale of the building. It is considered that the proposed signage will reflect site function.

“Furthermore, due to the sympathetic scale and design of the sign itself, it is considered that the proposal will not result in any adverse visual amenity impacts.

“The proposal is reduced in sized compared to the existing Poundland advertisement. The sign will not be illuminated. Given the above it is considered that such proportionate signate in association with the proposed retro gaming lounge is acceptable and does not adversely affect visual amenity.”

An application for a retro gaming lounge by MB Games Ltd was recently given the go-ahead in Swansea.

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