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Welsh Government’s tourism tax plans get green light

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THE SENEDD passed plans for a £1.30-a-night tourism tax in parts of Wales from 2027.

Senedd Members voted 37-13 for the tourism tax bill, which will see people charged £1.30 each, plus VAT, for stays in hotels, B&Bs and self-catering accommodation.

People staying in hostels and campsites would pay 75p per person per night, with under-18s exempt from the lower rate of the tax which would be introduced in 2027 at the earliest.

The tax would raise around £33m a year if implemented across the country but the 22 councils in Wales will be given powers to decide whether to introduce a levy locally.

Only two councils, Cardiff and Anglesey, – have so far indicated plans to bring in a levy but other authorities had yet to make a decision or had “no plans” to introduce a tax.

A register of visitor accommodation providers operating in Wales will also be established by the bill, laying the groundwork for licensing plans set to be brought forward separately.

Proponents argue the levy will ensure visitors contribute to the cost of services with revenue reinvested, while detractors warn the tax will put tourists off and damage Wales’ economy.

Tourism taxes are commonplace on the continent and, closer to home, Scottish councils will gain similar powers next year, while Manchester introduced a visitor charge in 2023.

Leading a debate before the key vote on July 8, Mark Drakeford told the Senedd: “By passing this bill, we will give councils the choice to introduce a modest additional charge which would be reinvested to support a thriving, sustainable tourism industry.”

The finance secretary said the visitor levy will be the first local tax for more than 500 years to have been designed and made in Wales, marking an important step for devolution.

Prof Drakeford said the Welsh Government wants to ensure the pressures and opportunities of tourism are fairly balanced, with visitors contributing to infrastructure and services.

Finance minister Mark Drakeford
Finance minister Mark Drakeford

The former First Minister pointed to evidence “from Iceland to New Zealand” of the revenue generated contributing significantly to challenges without deterring tourism.

He argued the bill would strengthen communities and build democratic accountability, putting tourism in Wales on a new and sustainable footing.

But Sam Rowlands, the Conservatives’ shadow finance secretary, described the bill as “bad for Wales and bad for the Welsh tourism sector”.

Conservative MS Sam Rowlands
Conservative MS Sam Rowlands

Warning the economy is in dire straits, Mr Rowlands said the tourism tax will impact jobs and harm the economy as he pointed out that the industry itself was broadly opposed.

‘Out of touch’

The tourism tax bill was introduced as part of the Welsh Government’s now-collapsed co-operation agreement with Plaid Cymru between 2021 and 2024.

Luke Fletcher, Plaid Cymru’s shadow economy secretary, reiterated his party’s support, saying: “There is a genuine opportunity here for us to create a sustainable tourism sector that works with both our communities and businesses.”

Plaid Cymru MS Luke Fletcher
Plaid Cymru MS Luke Fletcher

Mr Fletcher added: “The very same arguments were happening when they were looking to introduce a tourism levy in Barcelona and in other places, so I do really believe we will look back at this as a positive step forward for our communities.”

Labour’s Jenny Rathbone criticised the Conservatives for “being completely out of touch”, with thousands visiting Cardiff for the Oasis concert and communities picking up the costs. She asked: “Why should poor people rather than visitors have to pay?”

Closing the debate, Prof Drakeford agreed, accusing the Tories of “catastrophising” a “modest measure” which he compared to less than the cost of a cup of coffee.

Business

Computer gaming lounge plans for Tenby cinema submitted

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FORMAL plans to turn Tenby’s former Poundland and Royal Playhouse cinema to a retro computer gaming lounge have been submitted to the national park.

Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby’s branch on White Lion Street.

In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a change of use of the former Gatehouse (Playhouse) Cinema, most recently used as a Poundland store to a retro gaming lounge.

This follows a recently submitted application for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former cinema, ahead of the wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front façade.

A supporting statement for the change of use scheme through agent Asbri Planning Ltd says: “The proposed retro gaming lounge will be inviting to all ages, including families, groups and individuals with no age restriction. The applicant has several similar premises across other parts of the UK and operates under a successful business model.

“This includes a fee being payable to enter the premises which thereby grants access to unlimited game time to all consoles/arcade machines. There will be no slot or coin-based reward games, so the proposal would not be considered/classed as gambling. The site will provide snacks and drinks (including alcohol) which will be canned/bottled drinks.

“The sale of such drinks would be ancillary to the overall function of the premises, and a separate alcohol licence will be submitted, accordingly.”

It adds: “The development would provide a much-welcomed addition to White Lion Rd which will improve the vitality and viability of the immediate area by promoting greater levels of footfall within the area and introduce greater variety to the shopping frontage at this location.”

It proposes opening hours of 10-10, Sunday to Thursday, and to 11pm on Fridays and Saturdays.

The application, and the related signage scheme, will be considered by park planners at a later date.

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.

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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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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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