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Welsh Government confirms vacant land tax plan

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Housing a priority: Mark Drakeford takes action on land-banking

THE WELSH G​OVERNMENT​ will put forward the vacant land tax idea to test the Wales Act 2014 powers, Cabinet Secretary for Finance Mark Drakeford has announced.

The Cabinet Secretary will set out the next steps for proposing a new Welsh tax as part of the tax policy work plan for 2018.

Since announcing a shortlist of 4 new tax ideas alongside the draft Budget in October, the Welsh Government has been examining the case for each of these.

The 4 tax ideas were: a social care levy, a vacant land tax, a disposable plastics tax and a tourism tax.

Although the vacant land tax idea will be used to test the Wales Act powers, work will also continue on each of the other 3 tax ideas.

The decision to take forward the vacant land tax idea follows engagement with stakeholder organisations, the public and across government.

A vacant land tax has been chosen both because it could help to incentivise more timely development, and because it could help prevent dereliction and aid regeneration.

Professor Drakeford said: “Housing is a priority for the Welsh Government. A tax on vacant land could prevent the practice of land banking and land not being developed within the expected timescales.

“The Republic of Ireland vacant sites levy provides a useful starting point for how a vacant land tax could work in Wales.

“The existing model in the Republic of Ireland and the relatively narrow focus of the tax make this the most suitable of the 4 shortlisted ideas to test the Wales Act.”

The Irish measure, announced in their government’s 2018 Budget, will mean that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3% levy in 2019 and then become liable to the increased rate of 7% from 1 January 2019.

If land owners continue to hoard land in 2019, they will pay 7% in 2020.

When the Welsh Government announced it was considering such a measure in October 2017, before the UK Government said it was considering a similar plan, the House Builders’ Federation raised the spectre of developers decamping en masse to England with their large projects. That threat, such as it was, has receded but the Federation of Master Builders is still concerned.

Speaking to BBC Wales, Ifan Glyn of FMB Cymru said: “If there’s a tax that’s introduced that can focus solely on land banking for financial reasons to maximise profits, we would absolutely agree with that.

“Our issue is we don’t see how this tax can differentiate between land that’s been banked for financial reasons and land that isn’t being developed or stalling for reasons outside the developer’s control.”

A further wrinkle in the system was identified by Dr John McCartney, Director of Research at Savills Ireland.

Speaking about what were then only proposals by the Irish Government to impose the vacant site levy, he said that increasing the vacant site levy to 7% could amplify “boom-and-bust cycles” in the construction sector.

Dr McCartney said that land is a raw material for developers and it is natural for them to carry a stock of development land.

“No developer will now carry a land-bank in a slow market. This means when a recovery follows developers will spend the early years on site assembly rather than the house building they could and should be doing,” he explained.

Responding to the announcement, the Welsh Conservative Shadow Finance spokesperson, Nick Ramsay AM said: “From the outset, Welsh Conservatives have opposed the ludicrous proposal for a tourism tax in Wales, one which would cause serious harm to businesses across the country.

“While we are pleased the Welsh Government has listened to us and decided against taking this idea forward, once the mechanism has been tested, we would not expect the Labour Government to return to the table with this proposal, one which has been widely criticised by the industry.

“Our vigorous campaign will continue until Labour’s Finance Secretary consigns this ludicrous proposal to where it belongs: the bin.”

Commenting on the decision to bring forward a potential vacant land tax, Mr Ramsay added: “On the surface, we welcome the fact that, as in England, the Welsh Government is exploring the viability of a vacant land tax but we await the full details of this proposal from the Finance Secretary.

“However, an important distinction must be made between land held for legitimate technical reasons such as detailed planning or a lack of skills and materials, and land which is held for purely commercial speculation.

“Speculation distorts the main purpose of releasing land for much needed development and it will be vitally important to fully consult with the sector to ensure the right balance is struck.”

Business

Residents meet with local politicians over A477 road safety concerns 

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MEMBERS of the Eglwyscummin Community Council and residents of the village of Red Roses today (Friday 17th January) called a road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP to highlight what they consider to be an ‘unsafe’ junction.

Growing concerns about the safety of the Red Roses junction brought about by the increase in near misses and accidents from users of the junction was evidenced during the meeting. The community hope that continued pressured on Welsh Government will deliver the additional safety modifications needed to reduce the number of incidents happening at the junction.

The local Member of Senedd for Carmerthen West and South Pembrokeshire, Samuel Kurtz, has been leading the campaign with the Community Council and has been liaising with SWTRA and Welsh Government Ministers to call for action on this junction.

He has already delivered a successful campaign to change the road layout of the notorious A477 Nash Fingerpost junction following several serious accidents, which is already being of real benefit to the local community. He hopes to build on this success by continuing to fight for further improvements in Red Roses and address the speeding issues being experienced on the A477 through the village of Milton.

Following the community meeting, Samuel Kurtz MS commented: “The Community Council have been extremely active in sharing the experiences that drivers are having at this junction and have put forward some recommendations that they believe will make it safer. Sadly, it’s a typical case of the junction meeting all the criteria on paper, but in practice, it’s dangerous and needs addressing.”

“ In this case, traffic travelling Westward towards Pembroke at speed have no turn off lane before having to slow down to virtually a standstill to make the narrow sharp lefthand turn off the A477 to Red Roses. On this fast busy road, it has been the root cause of the sign being crashed into on several occasions as drivers have failed to make the turn. There are crashes or near misses, as cars break sharply to try to make the turn as safely as possible.”

He added: “I believe that there are some relatively straight forward steps that can be taken which will deliver improvement and I’ve been asking Welsh Government for a review of the A477 and will invite road officials to see for themselves the junction in use. But I do need feedback from the local community to help make the case to Welsh Government. I’m asking people to get in touch with me via my Facebook page or email to share their experience, opinion, or example of any issues they may have had or witnessed using this stretch of road.”

Pictured above: Members of the Eglwyscummin Community Council at the road-side meeting with local politicians Samuel Kurtz MS, Cefin Campbell MS and Ann Davies MP discussing safety concerns at the Red Roses junction.

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Business

Haverfordwest Farmers Market: Local producers and fresh produce

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AS County Councillor for Castle Ward, Thomas Tudor expressed his delight after visiting the Haverfordwest Farmers Market. Held in Castle Square, the market showcases a variety of high-quality local produce, offering a vibrant community shopping experience.

Fresh produce every Friday

The Haverfordwest Farmers Market takes place every Friday from 9:00am to 2:00pm in the heart of Pembrokeshire’s bustling county town. Visitors can explore a wide range of stalls offering fresh produce, meats, crafts, and organic goods directly from local farmers, growers, and artisans.

Market Manager Joanne Welch explained: “Customers enjoy a memorable shopping experience in a vibrant, friendly atmosphere, have confidence in the producers, their products, and can always rely on the high-quality produce available at every market.”

Why shop local?

The market serves as a hub for supporting local businesses and reducing food miles. “Buying local makes sense,” Joanne continued. “Not only does it benefit the local economy, but it guarantees the freshest produce that is great value for money—and tastes fantastic too!”

What you need to know

  • Purpose: Farmers markets provide a unique opportunity to connect with local producers while enjoying fresh, quality food. Supporting these markets ensures a sustainable future for local farmers and reduces the environmental impact of long food supply chains.
  • Hygiene standards: Stallholders adhere to the same strict hygiene regulations as other food retailers, ensuring safety and quality for customers.
  • Cost: While prices may not always be cheaper, the quality and freshness of the products offer excellent value for money.

For those looking to enjoy a unique shopping experience, Castle Square in Haverfordwest is the place to be every Friday. Explore the best of Pembrokeshire’s local produce and craft while supporting your community.

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Business

Samuel Kurtz MS raises awareness of Asda Foundation local grant opportunities

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SAMUEL KURTZ MS has called on local grassroots organisations in Carmarthen West and South Pembrokeshire to apply for new grant funding opportunities from Asda’s charity, the Asda Foundation.

The Asda Foundation has announced up to £500,000 of funding to help transform and improve community spaces across the UK. Grants awarded will be worth between £500 and £3,000 and are aimed at helping grassroots groups improve or transform their local outdoor community spaces. Funding can be used to transform an outdoor area, create or enhance community growing projects, and enable community clean ups.

This is the first in a series of grants that the Asda Foundation will deliver in 2025, with over £3m of funding to be made available to grassroots community groups. Information for groups on how to apply is available here: https://asdafoundation.org/our-grants/outdoor-community-spaces-fund/

Karl Doyle, Chair of the Asda Foundation, says: “Over the last year, our research has consistently told us that local communities are seeking better access to safe and accessible public spaces. We know that being outdoors has a positive impact on health and wellbeing, and that that bringing people together to be part of a group and community makes a significant difference to people’s lives. This grant provides funding support for groups to do just this, and we hope it will also help build community connections and help grow pride in communities across the UK.’’

Samuel Kurtz MS added: “ This funding scheme from the Asda Foundation provides a great opportunity for local groups to really come together to improve their local community and outdoor environment. I encourage any groups that may have an idea about how this money could be put to good use to find out about the application process as soon as possible. Given the deadline of the 11th February for this round of funding it is vital that applications are submitted in good time. It would be fantastic to see as many local bids as possible so that communities right across Carmarthen West and South Pembrokeshire can benefit from this scheme.”

Photo caption: Samuel Kurtz Member of the Senedd for Carmarthen West and South Pembrokeshire pictured at the ASDA store in Pembroke Dock.

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