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Council leader to write to Welsh Government urging review of 182-day self-catering business rules

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PEMBROKESHIRE’S leader is to write to Welsh Government to push for a review of the contentious 182-day rule for self-catering holiday properties which otherwise have to pay second homes tax.

Self-catering businesses not meeting the 182-day criteria end up paying the second homes council tax premium, currently 125 per cent on top of the general rate, in the county, along with similar premiums for the other elements of the overall bill such as the police precept.

In a submitted question heard at the July 16 meeting of Pembrokeshire County Council, Cllr Huw Murphy asked: “Most councillors are aware that much of Pembrokeshire relies on tourism and hospitality for its economic success. A key element of a successful Pembrokeshire tourism industry is the self-catering sector.

“Plaid Cymru in its manifesto made several pledges for its first 100 days in office, one under the headline of ‘Unleashing Wales Economic Potential’ which made no specific mention of the 182 letting day rule that was introduced by the previous Labour Government under their co-operation agreement with Plaid Cymru.

“However, Plaid Cymru prior to Senedd elections in May 2026, stated that they would review the 182-day threshold which has been a disaster for many self-catering businesses, many of whom are in rural and coastal communities. I have raised this matter on several occasions since being elected.

“Through speaking to those operating in the self-catering sector there is a clear need to reduce the 182-day threshold. I should point out that in the past I have suggested it be reduced to 140 days and still hold that view.

“Over 50 days have now passed since the Senedd Elections, but we have not heard any details of a review of the 182-day letting rule.

“Therefore, will the Leader [Cllr Tessa Hodgson] write off to the First Minister outlining the concerns of many Pembrokeshire county councillors with regards to the 182 days letting rule and ask for a reply setting out when Welsh Government intend to commence a review of this policy, which is much needed?”

Responding to the submitted question, Cllr Hodgson said she was happy to write a letter pressing the issue, adding she understood a Welsh Government review was expected, but was not aware of the timeframe for that at the current moment.

Cllr Murphy said, since his submitted question was publicised, he had been “inundated with emails” from constituents, “confirming the urgency” of a review.

Back in 2023, Cllr Murphy submitted an unsuccessful notice of motion to full council calling for the 182-day rule in Pembrokeshire to be lowered, proposing a figure of 140 days.

At the time of the 2023 call it was instead agreed to review the situation and for the council to raise its concerns to Welsh Government.

 

Business

Permanent location for national press featured Hwyl Outdoor Sauna refused

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CALLS to allow the permanent siting of an award-winning Pembrokeshire seaside village outdoor sauna which has been featured in the national press, and had a petition of nearly 600 in its support has been refused in its current site.

Back in June 2024, a temporary two-year permission for a mobile wood-fired sauna at overlooking the sea at Saundersfoot harbour was granted by Pembrokeshire Coast National Park’s development management committee.

Since then, a further application by Kerry Evans of Hwyl Outdoor Sauna to make the siting permanent was submitted to national park planners, which was recommended for refusal at the July 15 meeting of the national park’s development management committee.

A supporting statement accompanying the application said, since its introduction the sauna has “become a popular and valued amenity for both residents and visitors, offering a space focussed on health, wellbeing and community connection”.

It went on to say: “The overall sentiment within the village has been strongly supportive, with many residents recognising the sauna as a valuable asset that enhances the amenities in Saundersfoot,” adding: “Hwyl Outdoor Sauna has received positive attention in regional and national press helping to promote Saundersfoot as a destination for coastal wellbeing and outdoor experiences.

“Media coverage has highlighted the sauna as an example of the increasing popularity of sea swimming and sauna culture around the UK coastline.”

Back in February, the business, set up by former superyacht worker and mum-of-two Kerry won Sauna of the Year 2026/27 at the Wales Prestige Awards.

The permanent siting proposal had gained support from the public saying it was “a major asset to the village,” and “a wellness landmark for Saundersfoot,” and “a unique offering that attracts visitors to the beach and harbour”.

It was recommended for refusal on the grounds the sauna “in its current form and with the proposed location of the sauna, is considered to result in a landscape impact that harms the setting of the Saundersfoot Conservation Area,” it was “located in a position which reduces public access along the existing promenade route,” and an updated, since its previous permission, need for a Flood Consequences Assessment which hadn’t been addressed.

An officer report for members said that, while the 2024 scheme found no unacceptable adverse effects on the qualities and special landscape and seascape character of the National Park, “this application also includes further development in respect of a booking office (in retrospect) and therefore the amount of development in this application exceeds that of the temporary permission”.

Since the recommendation for refusal was publicised a 558-strong petition has been collected, calling for it to be allowed to remain; the local county councillor and his predecessor also both speaking in favour of the scheme at the meeting.

At the meeting, members heard from officers there may be scope for alternate siting of the sauna in the harbour area, but the current location could set a precedent for other areas in the park like Tenby or Newport’s Parrog.

At the meeting, applicant Kerry Evans said the sauna had been a “successful local business,” which had attracted thousands to the village with a thriving community around it, with donations to charities and local fundraisers.

She said the current location was “fundamental to its success,” providing users with “privacy and dignity,” while allowing them stunning views across the bay.

“For many first-time customers that first time when they step in [to the sauna] and look at the waves rolling in is unforgettable.”

Kerry said the sauna didn’t just benefit her but Saundersfoot and had operated safely for the last two years, being moved in poor weather.

When asked whether an alternative location could be considered, she said other parts of the harbour were still a “working harbour” and the sauna was sited next to the beach-side railings to avoid any danger of people potentially “staring in” at the sauna-users.

Phil Baker, a former county councillor for Saundersfoot, raised the near-600-strong petition in support of the sauna, along with a recent national park award for its part in the redevelopment of the harbour area; his successor Cllr Chis Williams also speaking in support.

Cllr Williams said the sauna was already moved if there were unsafe weather conditions, and, on the issue of potential obstruction, there had not been “a single complaint from residents or local businesses”.

The recommendation of refusal was reluctantly moved by Cllr Di Clements, who described it as “a brilliant business” on the grounds of visual impact, adding she hoped discussions would take place with officers on an alternative location.

She was seconded by Cllr Micheal Williams who warned approval would set a precedent that could be “used as a weapon for applicants and agents in the future,” with members having a duty to protect “the historic cove of Saundersfoot”.

Members overwhelmingly approved the recommendation of refusal, committee chair Cllr Simon Hancock saying: “we all desperately want this business to continue, but in a location that reflects the concerns of the national park.”

 

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Business

Shoppers and small businesses face extra costs under glass recycling scheme, Tories warn

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SHOPPERS could face higher prices and the inconvenience of taking empty glass bottles back to shops under a new recycling scheme, the Welsh Conservatives have warned.

First Minister Rhun ap Iorwerth defended the plans in the Senedd, arguing the deposit return scheme (DRS) will encourage environmental responsibility.

The scheme, scheduled to start in October 2027, will see customers pay a small deposit when buying drinks in single-use containers. This deposit is refunded when the empty container is returned to a shop.

Unlike the rest of the UK, the Welsh Government plans to include glass in its scheme.

Welsh Conservative leader Darren Millar quizzed the First Minister on the DRS, and argued including glass will push up costs for businesses, manufacturers, and consumers, and said 90% of glass in Wales is already recycled through kerbside collections.

He questioned why householders should have to “drive with their cars full of bottles back to the shops” rather than using their usual home recycling bins.

The First Minister noted that the Conservatives have previously supported the deposit return scheme with glass.

First Minister Rhun ap Iorwerth
First Minister Rhun ap Iorwerth

He said: “Why is it that the Conservatives said they supported including glass? Why is it that the last Senedd voted for the inclusion of glass, which is something that this government is respecting in taking this matter forward?

“It is because it does go further than recycling. It is the reuse. It is about that environmental responsibility.

“It is about also being a trailblazer, because there’s an agreement in principle in other parts of the UK to progressing with glass. We can be the ones showing the way.”

Responding in the Senedd, the First Minister dismissed warnings from large manufacturers about massive price increases, saying “the sums don’t add up.”

Mr ap Iorwerth added that small retailers who lack the physical space for return machines will be exempt from the scheme.

 

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Thousands of Welsh businesses at risk as owners fail to plan for succession

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New report warns that delayed ownership planning could threaten jobs, local supply chains and the future of established family firms

THOUSANDS of locally owned businesses, jobs and years of accumulated community wealth could be put at risk because too few Welsh business owners are planning for their eventual retirement or departure, a new report has warned.

The study by Economic Intelligence Wales says succession planning remains significantly underdeveloped among small and medium-sized businesses and calls for a single, clearly visible national support service to help owners prepare for changes in ownership.

The report, Small Business Ownership Succession Planning Strategies, was produced by Mark Lang, Max Munday, Annette Roberts and Neil Roche of the Welsh Economy Research Unit at Cardiff Business School.

It examined the challenges facing Welsh business owners who are approaching retirement or considering transferring their companies to family members, managers, employees or outside buyers.

Researchers warned that many owners remain focused on the everyday demands of running their businesses and do not begin planning until a sale or transfer becomes urgent.

This can make it more difficult to find suitable buyers, obtain finance or complete a successful transition, potentially resulting in otherwise viable businesses closing.

Previous research cited in the report found that only 16% of Welsh SMEs had considered succession planning over the longer term, while 47% of family-owned Welsh SMEs had no formal succession plan.

The problem extends across the UK. A 2025 study by Hymans Robertson Personal Wealth found that only 34% of family business owners had a formal succession plan.

Separate analysis by ExitRadar estimated that more than 800,000 UK companies had directors aged over 60 but no succession arrangements in place. It also found that more than 90% of smaller businesses placed on the market did not complete a sale.

The Economic Intelligence Wales report recommends creating a more coordinated system of support in Wales, giving owners a clear route to specialist advice, finance and information about the different ways a business can be transferred.

Options can include a sale to another company, a family succession, a management buyout or a transfer into employee ownership.

Adam Price, Cabinet Minister for Enterprise, Connectivity and Energy, said early planning could be critical to protecting employment and securing the long-term future of Welsh businesses.

He said: “Too often, succession planning is seen as something to consider later, when in reality early planning can be critical to securing jobs, investment and long-term business success.

“We want to create a simpler and more visible business support system that helps enterprises at every stage of their journey.

“That includes providing clearer pathways to advice, finance and specialist support for business owners considering succession, management buyouts, employee ownership or other transition options.

“By bringing support together and making it easier to navigate, we can help more Welsh businesses remain locally rooted, safeguard quality jobs and continue contributing to the growth and prosperity of communities across Wales.”

Professor Max Munday, of the Welsh Economy Research Unit, said many owners risked leaving succession planning until the last minute.

He said: “Too many business owners, busy with the day-to-day challenges of running their businesses, risk leaving succession planning until the last minute, putting years of their hard work and their critical economic value at risk.

“Many owners assume they will simply sell when the time comes, but the reality is that most businesses brought to market never complete a sale.

“This report demonstrates the importance of ensuring that business owners have access to the advice, support and funding they need to plan for the future.”

The Development Bank of Wales said it had supported 379 succession deals with investments totalling £157 million since it was launched in 2017.

These have included management buyouts, employee ownership trusts and other arrangements designed to preserve Welsh ownership and protect jobs.

Among the businesses supported was Merthyr Tydfil-based Design & Supply, where investment helped the existing management team take control of the company.

The bank also supported the transfer of logistics company Lloyd & Gravell into employee ownership.

A further £5 million investment package helped fund the management buyout of Tredegar-based Dragon Recycling Solutions Ltd.

Giles Thorley, Chief Executive of the Development Bank of Wales, said ownership transitions required careful preparation and could not be expected to happen automatically.

He said: “Wales has thousands of successful locally owned businesses that are central to jobs, supply chains and communities, but too many are approaching ownership transition without a clear plan.

“Successful transitions do not happen by accident. They require early planning, good advice and access to appropriate finance.

“Unless support is simple to find and easy to navigate, otherwise strong businesses can struggle to realise their value or secure their future.

“We have seen first-hand how succession funding can protect jobs, preserve local ownership and create the platform for future growth.”

He said a single national support service, backed by practical advice and greater awareness, would help more business owners prepare before they were forced to make urgent decisions.

Economic Intelligence Wales is a partnership involving Cardiff Business School, Bangor Business School, the Enterprise Research Centre, the Office for National Statistics and the Development Bank of Wales.

 

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