Business
Traditional town centre business model is ‘dead’, ex-minister warns
A FORMER minister warned the traditional business model for Welsh town centres is “dead”, dismissing “magic bullets” such as free parking and abolishing business rates.
Labour’s Lee Waters argued the economic reality of online and out-of-town shopping means a new purpose must be found for struggling high streets.
Mr Waters described town centre regeneration as a “gnarly, knotty problem”, with economics at its heart, during a debate in the Senedd on October 15.
Warning of an “unfair, unlevel playing field”, he told the Senedd: “The business model of the town centre that we all grew up with is dead.”
The former transport minister said the business model has been “enormously disrupted” by supermarkets, out-of-town shopping, online retail and the pandemic.

Mr Waters warned of little evidence to support free parking which would take revenue from councils and fail to address the 25% of people who do not have access to a car.
“The world as we knew it has gone,” he said. “And simply abolishing business rates or providing free car parking is not going to bring it back. It’s a far more complex tapestry we require… and I’m afraid our rather glib debate on these things is getting us nowhere.
“But the fix is much more complex and involves far more partners in a granular way.”
The Labour politician, who is standing down in May, said it is much cheaper for a business to build out of town than to redevelop a town centre property.
He also explained how housing trends have changed the social and economic fabric of town centres, leaving them to cater to a different demographic.
Calling for a long-term plan, including the public and private sectors, Mr Waters raised an example of “disjointed” government leading to a college in Bangor moving out of town.
The debate was tabled by Plaid Cymru’s Luke Fletcher, who painted a similarly bleak picture of high streets with “vacant retail units, shuttered shopfronts and boarded-up windows”.

He warned government schemes were merely “plugging holes, not rebuilding foundations”, with Wales having the second highest rate of vacant shops in the UK.
The shadow economy secretary argued the real issue was “ownership”, calling for a community right to buy to tackle the problem of absentee landlords.
Plaid Cymru’s motion called for a comprehensive strategy for town-centre regeneration, preferential business rates, long-term funding and a law on “right to buy” powers.
South Wales East MS Delyth Jewell, the party’s deputy Senedd leader, said: “These buildings… tell the stories of our past…. It is a covenant with our past that is being corroded with these closures.”

The Conservatives’ Joel James warned Labour policies have driven businesses on high streets to extinction, with high business rates amounting to “economic punishment”.
He argued throwing money at regeneration projects is useless without first fixing the underlying business environment to ensure competition can thrive.
Mr James criticised the “anti-business, anti-growth” motion and its focus on local ownership, warning Plaid Cymru’s “financial fantasies” offer no hope for high-street businesses.
He told the Senedd the Conservatives would scrap rates for all small businesses and improve access to free car parking in town centres.

Labour backbencher Mike Hedges agreed with Plaid Cymru’s calls for a right to buy, saying: “The community right to buy is proven, popular and politically effective. We need to have it in Wales and… we need to have it now.”
Jayne Bryant, Wales’ local government secretary, pointed to £100m delivered through the transforming towns programme since 2022, with another £57m on the way.
Ms Bryant, whose responsibilities include regeneration, told the Senedd an empty property enforcement fund has been set up to help bring vacant buildings back into use.
She said the Welsh Government is providing £335m in rates relief this year, which includes £78m for retail, leisure and hospitality businesses.

Ms Bryant explained a “town centre first” principle has been embedded for planning decisions on where to locate public services such as colleges and health hubs.
The minister added that a commission – set up to explore local ownership models – is set to present its recommendations next month which will inform the introduction of a right to buy. Her goal, she said, is to bring “pride, purpose and prosperity back to the heart of our towns”.
At the end of the debate, Plaid Cymru’s original motion was voted down before ministers’ amended version – which supported the existing strategy – was narrowly passed, 24-23.
Business
Bid to convert office space into chocolate factory, salon and laundrette
A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners
In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.
A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.
For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”
It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.
The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.
“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.
“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.
“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”
The application will be considered by county planners at a later date.
Business
First Minister criticised after ‘Netflix’ comment on struggling high streets
Government announces 15% support package but campaigners say costs still crushing hospitality
PUBS, cafés and restaurants across Wales will receive extra business rates relief — but ministers are facing criticism after comments suggesting people staying home watching Netflix are partly to blame for struggling high streets.
The Welsh Government has announced a 15% business rates discount for around 4,400 hospitality businesses in 2026-27, backed by up to £8 million in funding.
Announcing the package, Welsh Government Finance Secretary Mark Drakeford said: “Pubs, restaurants, cafés, bars, and live music venues are at the heart of communities across Wales. We know they are facing real pressures, from rising costs to changing consumer habits.
“This additional support will help around 4,400 businesses as they adapt to these challenges.”
The announcement came hours after Eluned Morgan suggested in Senedd discussions that changing lifestyles — including more time spent at home on streaming services — were contributing to falling footfall in town centres.
The remarks prompted political backlash.
Leader of the Welsh Liberal Democrats, Jane Dodds, said: “People are not willingly choosing Netflix over the high street. They are being forced indoors because prices keep rising and wages are not.
“Blaming people for staying at home is an insult to business owners who are working longer hours just to survive.”
Industry groups say the problem runs deeper than consumer behaviour.
The Campaign for Real Ale (CAMRA) welcomed the discount but warned it would not prevent closures.
Chris Charters, CAMRA Wales director, said: “15% off for a year is only the start. It won’t fix the unfair business rates system our pubs are being crushed by.
“Welsh publicans need a permanent solution, or doors will continue to close.”
Across Pembrokeshire, traders have repeatedly told The Herald that rising energy bills, wage pressures and rates — rather than a lack of willingness to go out — are keeping customers away.
Several town centres have seen growing numbers of empty units over the past year, with independent shops and hospitality venues reporting reduced footfall outside the main tourist season.
While ministers say the relief balances support with tight public finances, business groups are calling for wider and longer-term reform.
Further debate on rates changes is expected later this year.

Business
Pub rate relief welcomed but closures still feared
CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills
A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.
The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.
However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.
Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.
“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.
“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”
He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”
Mounting pressure on locals
Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.
But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.
For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.
Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.
In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.
Community role
Campaigners stress that the issue goes beyond beer sales.
Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.
In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.
CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.
The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.
Long-term reform call
CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.
Without change, it warns, the number of closures is likely to accelerate.
Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”
For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.
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