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Liberty Steel collapse raises fears for Welsh steel’s future

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Instability of Gupta empire casts shadow over Newport

THE COLLAPSE of Liberty Steel’s major operations in South Yorkshire has intensified concerns about the long-term future of the UK’s steel industry — with growing scrutiny now falling on the company’s Welsh site in Newport.

Liberty’s Speciality Steel UK (SSUK) business, which includes plants in Rotherham and Stocksbridge, was placed into compulsory liquidation last week. The UK Government has stepped in to take over operations temporarily, securing 1,450 jobs and attempting to stabilise supply chains in the aerospace, energy, and defence sectors.

While Liberty’s Newport site has not been affected directly and remains operational, it is part of the wider GFG Alliance, the international conglomerate owned by Sanjeev Gupta. The group has faced significant financial strain since the collapse of its main backer, Greensill Capital, in 2021, and is currently the subject of an ongoing Serious Fraud Office investigation.

The Pembrokeshire Herald understands that Newport continues to produce hot-rolled coil, a key material used in construction and manufacturing. However, the instability across the group has prompted unions and industry watchers to warn of potential knock-on effects in Wales should further restructuring or asset sales occur.

Port Talbot transition looms

The uncertainty comes at a time of major change for Welsh steel. Tata Steel has already closed both of its blast furnaces at Port Talbot as part of its move to electric arc furnace technology. Although £1.3 billion in public funding has been committed to support the transition, and £80 million has been allocated for retraining and business support, the closures mark the end of primary steelmaking at the site — a capability that has existed in Port Talbot for over 70 years.

In a speech to the Welsh Labour Conference on June 28, Secretary of State for Wales Jo Stevens defended the government’s handling of the transition, highlighting the investment package and a new £11.8 million joint fund with Tata to stimulate job creation. She described the reforms as essential for securing a “bright, long-term future” for steel communities in Port Talbot, Llanwern and Trostre.

But industry analysts and union leaders continue to express concern that the UK is losing too much too fast — especially when it comes to its ability to make steel from raw materials rather than recycled scrap.

Is the UK still self-sufficient?

With Liberty Steel’s collapse adding to the list of recent setbacks, serious questions are being raised about the UK’s strategic independence in steel production. The government is now financially supporting four of the country’s six largest steelmakers and has passed emergency legislation to intervene in the industry.

However, now that Port Talbot’s blast furnaces have closes, the UK is now left with no large-scale primary steelmaking capacity. This, critics argue, has left the country vulnerable in the event of global supply chain shocks, conflict, or major infrastructure demand.

The Newport site remains stable — for now — but its future is increasingly tied to the fortunes of the wider GFG group. Unless long-term certainty is restored across the sector, the UK risks not only further job losses but the erosion of a vital national industry.

What next for Liberty Steel and UK industry?

Reports suggest that Sanjeev Gupta is preparing a “pre-pack” administration deal to regain control of Speciality Steel UK (SSUK) following its liquidation. One proposal under consideration includes placing the business into a trust for his children — a move intended to reassure investors and secure the unit’s future. Talks are ongoing as administrators seek a viable solution to restart operations.

Labour MP Sarah Champion has described the liquidation process as “full of hollow promises” and warned that Liberty Steel is too strategically important to be allowed to fail. “I am confident the government will do all in their power to let it flourish,” she said.

GMB National Officer Charlotte Brumpton-Childs also weighed in, calling the collapse “another tragedy for UK steel” and blaming “years of chronic mismanagement” by Liberty’s leadership. She urged the government to step in, as it previously did with British Steel, to safeguard remaining jobs and production capacity.

With instability spreading across the sector, industry leaders are urging the government to produce a long-term industrial strategy. A comprehensive plan is expected to be unveiled later this year, which may include further support drawn from the £2.5 billion National Wealth Fund.

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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