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Welsh Water chief quizzed over plans to slash 500 jobs

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SENEDD Members quizzed the boss of Dŵr Cymru Welsh Water about plans to cut around 500 jobs amid concerns about the “enormous” pay and bonuses pocketed by executives.

Peter Perry, the outgoing chief executive, appeared before a Senedd committee today (November 5) after Welsh Water unveiled plans to cut annual spending by £50m.

Mr Perry is retiring from the industry after joining the company as an apprentice in 1979, with former Sydney Water boss Roch Cheroux set to take the reins in the new year.

He told the climate committee: “In my 46 years, I’ve never seen a time for the industry or the company where there is so much external focus, so much challenge.

“Customers are, rightly, expecting better standards and there’s an unparalleled interest in the environment… we welcome both but there are also considerable challenges.”

He outlined Welsh Water’s trawsnewid (transformation) plan to reduce its workforce by approximately 500 full-time-equivalent roles over the next 18 to 24 months.

“This is not a desired outcome, this is a necessity,” he said.

Mr Perry explained the sector has faced hundreds of millions in extra costs due to the pandemic and droughts, with £60m spent on the Felindre water treatment works alone.

He told Senedd Members a sector-wide credit-rating downgrade has increased borrowing costs, reducing Welsh Water’s financial wiggle room.

“We are not in the same strong financial position we would have been in five years previously,” he said. “The whole idea of trawsnewid is the company taking responsible action now to make sure we remain in a sustainable financial position for five, ten, 15, 20 years.”

Llŷr Gruffydd, who chairs the committee, asked whether Welsh Water will have to do less due to having fewer people – warning of a “doom loop” of worsening performance.

Plaid Cymru MS Llyr Gruffydd
Plaid Cymru MS Llŷr Gruffydd

Mr Perry insisted: “That’s not the case at all… we would not, for one second, look at service levels dropping – our targets are tightening.”

Welsh Water stressed the transformation programme will not impact its £4bn investment plan for 2025 to 2030, which is nearly double the amount of the previous five years.

Sam James, commercial managing director at Welsh Water, added: “It’s about doing more with the people we have. How do we make it easier for people to do their job?

“There is still a lot of manual data processing, for example.”

Sam James, commercial managing director at Welsh Water
Sam James, commercial managing director at Welsh Water

The not-for-profit company is focusing on reducing “back-office” support and management roles to limit the impact on front-line teams.

Ms James said the plan is broader than a restructuring, with 50% of savings to come from employment costs and 50% from other efficiencies, such as better use of data and AI.

Martin Driscoll, Welsh Water’s business support and people director, said 316 people have so far put their name forward for voluntary redundancy.

Martin Driscoll, Welsh Water’s business support and people director
Martin Driscoll, Welsh Water’s business support and people director

On the risk of losing experienced staff, Mr Perry said: “We will be disappointing some colleagues who would like to go on the basis that we can’t lose their expertise.”

Janet Finch-Saunders, a Tory committee member, said: “There’s been so much concern about the level of executive pay and bonuses at a time… when it is felt by many people that there has been a lot of failings within the water industry and, in particular, Dŵr Cymru.”

Welsh Water’s chief executive received a £460,000-a-year base salary in 2025/26, with total target remuneration of £894,000, according to the company’s latest accounts.

Conservative MS Janet Finch-Saunders

Mr Perry, who earned a base salary of £369,000 in 2024/25, replied: “First and foremost, any of the variable pay that executives have is entirely based on performance so there has been a proportionate reduction.”

He added: “I acknowledge I’m well paid, I’m not going to win the argument on that, but what I would say: the figure that’s been in the public domain of an £800,000 salary is incorrect. 40% of it was linked to an accounting practice… for a future pension accrual.”

Mr Driscoll described the £892,000 listed in the 2021 accounts as total remuneration as “to some extent fictional”, claiming the chief executive’s pay has “tracked downward” over the past five years.

Asked whether executives will take a pay cut, Mr Perry told the committee: “Trawsnewid is not about cutting people’s pay in the organisation at all.

“We’re losing colleagues, regrettably, but we’re not attacking people’s terms and conditions.”

 

Business

Pembrokeshire St Brides Castle biomass and solar scheme

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PLANS for a green energy scheme at a Pembrokeshire former country house which is now holiday apartments have been given the go-ahead.

In an application to Pembrokeshire Coast National Park, HPB Ltd, through agent Acanthus Holden Architects, sought permission for a biomass boiler plant and installation of 16 rows of solar panels to the south of the tennis courts, St Brides Castle, St Brides, along with the removal of two tennis courts, two polytunnels, two sheds and relocation of a container.

Marloes and St Brides Community Council: Supporting

An officer report recommending approval said: “St Brides Castle. Listed Grade II* is a former country house (now holiday apartments) just south-west of the small settlement of St Brides.

“The house and its listed ancillary buildings stand prominently within a large grade-II-registered park and garden. The development site lies immediately south of the registered asset, outside of its boundary.”

It added: “Although in a sensitive location, the proposed scheme is well-screened, utilising an existing hedged enclosure. The proposed panels do not protrude over the hedge line, the proposed extra planting to the south and west providing further screening. The proposed building, also well-screened, is of traditional design, proportions and materials.”

The application was conditionally approved by park planners.

 

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Business

Welsh business confidence rises as firms buck UK trend

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Wales records strongest year-on-year growth of any UK nation or region, according to Lloyds Business Barometer

WELSH business confidence rose in April as firms reported growing optimism about the wider UK economy, new figures show.

The latest Business Barometer from Lloyds found that confidence among businesses in Wales rose by eight points to 38% during the month.

That was despite overall UK business confidence falling by 11 points to 44% in April.

The survey found Welsh firms’ confidence in their own trading prospects remained unchanged at 46%, while optimism about the wider economy climbed 16 points to 30%.

When combined, those figures gave Wales a headline confidence reading of 38%, up from 30% in March.

Wales also recorded the largest year-on-year confidence growth of any UK nation or region and was the only area to report both year-on-year and month-on-month growth.

A net balance of 34% of businesses in Wales said they expected to increase staff numbers over the next year, up nine points on the previous month.

Looking ahead, Welsh firms identified investment in their teams as the main target area for growth, with 48% citing training and staff development.

Other priorities included introducing new technology, such as AI or automation, at 42%, and evolving products or services at 40%.

The Business Barometer, which surveys 1,200 businesses each month, has been running since 2002 and is used as an early indicator of UK economic trends.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year.

“UK businesses are resilient and adept at deploying strategies to defend growth in uncertain conditions. Over the past month, we’ve seen them opt for flexibility wherever possible.

“They’re building contingency into their short and medium-term plans, rather than expecting a rapid return to normal. Protecting margins has become more important.

“That means tougher cost scrutiny and a greater focus on balancing growth with profitability.

“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long-term value.”

Nathan Morgan, area director for Wales at Lloyds, said: “Wales is bucking the UK-wide trend when it comes to business confidence, increasing during April against the national trend.

“This confidence is the result of Welsh firms’ ongoing focus on investment to protect their position against future disruption.

“At Lloyds, we’ll continue to nurture this recent momentum of growth by working with businesses across the nation to equip them with the financial tools they need.”

Across the UK, firms’ confidence in their own trading outlook fell six points to 54%, while optimism in the wider economy dropped 17 points to 33%.

The East Midlands was the most confident UK nation or region in April at 53%, followed by London at 51% and the West Midlands at 49%.

 

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Business

Haverfordwest Pink Cat Shop building could be redeveloped

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PREVIOUSLY approved plans to convert a listed former clothes shop in Haverfordwest’s town centre to flats and a café have seen a fresh scheme presented, this time from the council.

Back in November 2023, members of Pembrokeshire County Council’s planning committee approved an application by Mr B Roscoe to convert the Grade-II-listed Pink Cat Shop, 24 High Street, to six flats and a café.

The building was first listed in 1974, due to its “… special architectural interest as good late Georgian style terraced front, with surviving staircase and C18 rear wing”.

The property has a long commercial history dating back to 1901, with it being originally used by Tom Davies the clothier; in recent years the basement and ground floors have been used as a café, with the upper floors remaining vacant.

Agent Evans Banks Planning Limited had said the upper floors of the building have been vacant for some five years, and the building was marketed for sale for two years without interest.

After that successfully approved scheme, a similar application has now been submitted by Pembrokeshire County Council itself for the Pink Cat building, again through agent Evans Banks Planning Limited.

A supporting statement accompanying the latest listed building application “follows the same overarching principles of development and reuse of the existing building, seeking to deliver residential flats while retaining the character and significance of the listed asset”.

It adds: “Although there are some differences in the detailed design and layout, the proposed works remain comparable in nature and impact to the previously approved scheme and continue to represent an appropriate and sustainable form of development for the site.”

It says internal works on the previous scheme “are designed to be reversible and avoid harm to the historic fabric, ensuring that the architectural and historic significance of the listed building is preserved whilst enabling a sustainable and viable use”.

Referring to the latest proposal it says: “In terms of accommodation, the proposal seeks the partial conversion of the existing use of the building but will retain the commercial element at the ground floor frontage aspect of the building, to ensure that the property continues to make a positive contribution to the vitality and viability of the town centre.”

The latest application will be considered by county planners at a later date.

 

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