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Welsh steel faces drastic impact from EU tariffs, minister warns

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WALES’ economy secretary has warned of drastic consequences for the future of Welsh steelmaking after the EU announced plans to slash tariff-free import quotas.

Rebecca Evans pledged to do “everything we can” to influence UK-EU talks over plans to cut the amount of tariff-free steel that can be imported into the bloc by nearly half.

Ms Evans said: “We’re extremely concerned [about] the EU’s announcement on the new tariff measures, and what they will mean for the steel industry in Wales and the UK.”

She stated Labour ministers are pressing their Westminster counterparts to engage in urgent discussions with the European Commission to ensure Welsh steel is not left behind.

Luke Fletcher, Plaid Cymru’s shadow economy secretary, criticised the “panic-mode” UK Government for being “blindsided” by the announcement.

Plaid Cymru MS Luke Fletcher
Plaid Cymru MS Luke Fletcher

During today’s (October 8) topical questions in the Senedd, Mr Fletcher told the chamber: “This really is crunch time for the Welsh steel industry.

“The EU decision to almost halve tariff-free quotas for imported steel threatens to cut off access to our biggest export market, with industry leaders warning of this perhaps being the biggest crisis the UK steel sector has ever faced.”

Pointing to Labour’s pre-general election promises of a new relationship with Europe and to “move mountains for steel”, he said: “Yet, a year on for Port Talbot, here we are again.”

Mr Fletcher called for action to ensure Welsh plants, such as Port Talbot and Llanwern, are not left to bear the brunt of a tariff war between Brussels and Washington – with the EU’s move widely seen as a response to US tariffs.

“Our steel communities can’t take much more,” he said. “And there’s already a track record from the Labour UK Government of safeguarding steel plants in England.”

Ms Evans replied: “The EU’s proposal clearly has the potential to have drastic consequences for the Welsh steel sector at a time when… it is already under immense trading pressure due to the US tariffs and global overcapacity.”

Labour’s David Rees, who represents the Senedd’s cross-party group on steel, urged Welsh ministers to press the case with European partners as well as UK ministers.

The Aberavon Senedd member called for Wales to have a voice in negotiations to protect the country’s interests in securing a tariff-free quota and reduced tariffs for UK steel.

Ms Evans agreed that whatever emerges must work well for Wales as well as the UK.

She pledged: “We’ll do everything we can to have the most influence we can in those discussions, setting out exactly how important this is to Wales.”

Samuel Kurtz, the Conservatives’ shadow economy secretary, warned steel products from China could flood the UK as a result of continental markets closing their doors.

Conservative MS Samuel Kurtz
Conservative MS Samuel Kurtz

Mr Kurtz also expressed concerns about the UK’s comparatively high electricity costs amid a transition away from blast furnaces to an electric-arc furnace at Port Talbot.

Labour’s John Griffiths, who represents Newport East – which includes the Llanwern finishing plant – warned steel is in a vulnerable position following the UK’s exit from the EU.

Ms Evans replied: “I absolutely agree it’s really important that we consider our steel sector in its entirety here in Wales and that we make sure that the decisions that are taken now by the UK Government reflect the entirety of our steel industry.

“That’s why it’s so important, as well, that we continue our discussions with the unions because they have a really good feel of the situation on the ground and they have good ideas, as well, as to how we can continue to address this issue.”

Unite general secretary Sharon Graham said: “UK steel must be backed for the long term, the current piecemeal approach to our steel industry isn’t working.

“Without delay the UK must introduce strict rules to ensure that all UK infrastructure developments and all public sector projects must use domestically produced steel.

“This must be the first step in protecting a foundation industry which is critical for the economic success of our nation and vital for our national security.”

The Senedd’s economy committee will take evidence on the future of Welsh steel tomorrow (October 9), hearing from Tata Steel UK chief executive Rajesh Nair and trade unions.

Business

Festive fun as Milford Haven Christmas market returns to the waterfront

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Traders, lights and family entertainment to kick off Pembrokeshire’s Christmas season

THE FESTIVE spirit is coming to life in Milford Haven with markets, lights and family fun as the town gears up for a packed Christmas programme along the waterfront.

Milford Waterfront is preparing for a busy season of events, starting with an indoor Christmas market in the Link Building from November 21 to 23, featuring handcrafted local gifts and festive treats.

Lucy Wonnacott, head of communications and marketing at the Port of Milford Haven, said: “Every year the berth holder community, Milford Waterfront businesses and residents all get involved in making the whole place sparkle, so we encourage people to come and see their efforts and enjoy the lights, soak up the festive cheer, and visit the amazing businesses around Milford Waterfront.

“We’re delighted to host so many activities this festive season to support the independent business community here. There will definitely be something for everyone, and new to Milford Waterfront this year, the indoor Ice Rink at Sybil House will be very special – we’re looking forward to seeing everyone getting their skates on.”

The festive programme includes Santa by the Sea on December 6, when Father Christmas will arrive by RNLI lifeboat before heading to Milford Haven Town Hall for the town’s official Christmas lights switch-on.

The event, running from 12:00pm to 3:00pm, will feature live music, entertainment, face-painting and family activities.

Young artists aged three to twelve can take part in print-your-own Christmas card workshops at the Waterfront Gallery on November 22, 29 and 30. The sessions are free but must be booked in advance by calling 07949 763100.

From December 12 to 14, visitors can enjoy an indoor ice-skating experience at Sybil House, next to Phoenix Bowl. The synthetic rink will be open from 12:00pm to 8:00pm and is suitable for all ages.

The festive fun continues with Pure West Radio’s Purely Magical Christmas Grotto in the Link Building on December 7, 13, 14, 19, 20 and 21. Tickets must be booked in advance and include a visit with Santa and his elves, professional photography, chocolate gifts and more.

Throughout December, the waterfront will be illuminated by the annual Christmas Lights Competition, organised by Milford Waterfront, Milford Marina and Visit Milford Haven. The contest features decorated shopfronts, balconies and boats, creating a vibrant festive atmosphere across the area.

Visitors are encouraged to make the most of the season by staying overnight at the Tŷ Hotel Milford Waterfront, overlooking the marina, to enjoy the full Christmas experience.

More information about this year’s programme of events is available on the Milford Waterfront website.

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Business

Letterston Village Stores on the market after 50 years of family ownership

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A WELL-KNOWN family-run village shop in North Pembrokeshire has been put up for sale after more than half a century of ownership.

Letterston Village Stores has been instructed for sale through specialist business property adviser Christie & Co, with a freehold asking price of £465,000.

The popular store was built in 1974 and has been run by brother and sister duo Gerwyn Howells and Marilyn Griffiths for the past 20 years. The pair have now decided to retire.

The detached property includes a spacious sales area with scope to expand the business by introducing new product lines, as well as a large three-bedroom apartment above the shop, which could be used as owners’ accommodation or rented out for additional income.

Marilyn Griffiths said: “I have really enjoyed running the store. Our customers are fantastic, and I have made many friends over the years. It was a very hard decision to sell, but the time has come to think about the future and retirement plans. I have instructed Matthew McFarlane from Christie & Co to manage the sale process for me.”

Matthew McFarlane, Business Agent at Christie & Co, added: “We are delighted to have been instructed to sell this business by Marilyn and Gerwyn. It has been in the family for over 50 years and offers an exciting opportunity for either a first-time business owner or a multi-operator.”

The property is available freehold at £465,000.
For more information, visit: www.christie.com/3410544

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Private care providers ‘making hay’ as plan to restrict profits ‘backfires’

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A WELL-INTENTIONED policy to restrict profits in children’s care in Wales has backfired, allowing remaining providers to “make hay” and double their costs, a committee has heard.

Jake Berriman, leader of Powys Council, warned an “unforeseen” consequence has left councils with no choice but to cough up because other providers have fled the sector.

In February, the Senedd passed a law aimed at “eliminating” private profit – with looked-after children only cared for by the public sector, charitable or not-for-profit organisations in future.

Cllr Berriman said the Welsh Government’s phased move to restrict profit has seen private providers leave the sector and others have simply doubled their costs.

“We have to pay because there is no choice within the market,” he warned. “I think they are making hay while it is there to be made and the sun is shining.

“We’re paying the price for that and that was unforeseen.”

Giving evidence on the Welsh draft budget to the Senedd’s local government committee on November 13, councils pointed to the increasing demand and complexity of social care.

Jane Gebbie, the deputy leader of Bridgend Council, said: “We’ve got one placement for one young person across Wales at the minute, that’s £20,000 per week – that is excessive.”

Mary Ann Brocklesby, the Labour leader of Monmouthshire Council, added: “We’d all like to say that’s unusual – it’s not, it’s becoming standard. I don’t think there is a local authority across Wales that is not facing that kind of singular cost pressure.”

Cllr Gebbie said people are rightly angry about council tax rises amid a cost-of-living crisis, with poverty increasing demand for public services across the board.

The Labour councillor warned funding for prevention and early intervention has been cut over the years, with councils forced to focus on statutory services.

Cllr Berriman said: “There’s a great deal of nervousness around the potential of a roll-over budget of around 2%. Even at the 2.5% that has been modelled, that is opening a gulf – a shortfall in budget projections due to in-year pressures.”

He warned of £560m of pressures, “which clearly won’t be covered” by the 2.5% average increase for councils proposed in the Welsh Government’s draft budget.

Cllr Berriman added: “We’re looking nervously across the border at authorities in England which have had section 114 notices [effective bankruptcy] on them and we’ve seen the devastating effects that has as those authorities lose control over their budgets.”

The Liberal Democrat stressed: “We want to avoid that at all costs.”

He called for a “meaningful” funding floor to ensure no council receives an increase less than a certain amount, “reducing the impact of winners and losers out of the settlement”. Ministers have proposed a 2.3% funding floor in the 2026/27 draft budget.

Calling for an increase of at least 4%, Cllr Brocklesby told the committee council tax makes up nearly 40% of Monmouthshire council’s revenue and “we cannot keep increasing it”.

She said councils are expecting no let-up in constraints before the 2027 local elections.

The councillor told Senedd Members: “A roll-over budget, with a 2.5% increase, doesn’t give us confidence that we will be able to collectively meet all the challenges.”

The Welsh Local Government Association (WLGA) has warned of a funding gap of £436m based on a 2% increase, the equivalent of 14,000 jobs or a 22% average council tax hike. Adjusted for the proposed 2.5% increase, the budget shortfall would be about £400m.

Cllr Brocklesby also expressed concerns about increasing national insurance costs, which the Labour Welsh and UK Governments have only partially covered.

She told the committee: “It does mean we have to consider various cost savings across the board, including looking at our workforce. For some councils, that will lead to redundancies… in others it will result in reduced services.”

Cllr Berriman added: “Those frontline services, as ever, are suffering this year and will be suffering next year as a result of this unexpected cost and other cost pressures.”

He warned of a “painful picture”, with every 1% less in the settlement from central government resulting in a 3% council tax increase in Powys.

The council leader told the committee: “The cost pressures… are such that we are diminishing the local government offer and we just can’t carry on on that basis.”

Asked how councils will bridge the estimated £400m gap, Cllr Gebbie bluntly said: “I think the Welsh Government needs to tell us what they don’t want us to do.”

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