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Business

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

Boost your start-up idea with popular Business Bootcamp

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PEMBROKESHIRE’S popular Business Bootcamp is set to return to offer a boost to local start-ups this summer.

Following the success of last year’s event and positive feedback from participants, Pembrokeshire County Council’s Business Support Team will host a two-day Business Start-Up Bootcamp in June.

Entrepreneurs at prestart, start-up or established business stages are encouraged to register for this free workshop offering an insight into business essentials.

Experts will cover key topics including idea generation, branding, marketing, finance, and pitching.

There will also be an opportunity to network with like-minded entrepreneurs, find out more about what support is available and explore potential business connections.

Pembrokeshire County Council’s Business Development Officer for Entrepreneurship Industries Alex Evans said: “Due to popular demand and positive feedback from the previous Bootcamp we ran, we were happy to run another Bootcamp to supply the growing demand of business support in the County of Pembrokeshire.

“With a specialist organisation running the Bootcamp and guest speakers attending, this is a great opportunity for entrepreneurs to either kick start their business ideas or boost their business growth.”

The Bootcamp, funded by the UK Government Shared Prosperity Fund, will take place on June 3rd and 10th 9am to 3pm at the Bridge Innovation Centre, Pembroke Dock, SA72 6UN. Places are limited and booking is essential.

To find out more please contact Alex on Alex.Evans@pembrokeshire.gov.uk or 07584642534.

Ends

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Business

Business leader takes on 414-mile Easter cycling challenge

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A LEADING west Wales businesswoman is preparing for an epic 414-mile cycling journey from Fishguard to London to raise funds for children and families living in poverty.

Amy Seppman, Marketing Director at JCP Solicitors and President of Swansea Bay Business Club, will set off on Thursday (April 17) on a six-day bikepacking challenge alongside her friend and fellow fundraiser, Hollie Labunsky.

The pair will complete the journey entirely unsupported, carrying all their gear as they follow the scenic but demanding National Cycle Route 4 through the Welsh countryside and into the heart of London.

The challenge forms part of Amy’s efforts to raise £40,000 for Swansea-based charity Faith in Families, which supports vulnerable children and families across the region. With more than £38,500 already raised, Amy hopes the ride will push her over the fundraising finish line – with time to spare for further events later this year.

Speaking ahead of the challenge, Amy said: “Faith in Families is an incredible local charity doing vital work in our communities. As part of my presidency at Swansea Bay Business Club, we’ve been raising funds through various events – but this one might be the toughest yet.

“We’ll be cycling for six days straight, tackling hills, country lanes, and city streets – all with our backpacks strapped to our bikes. It’s going to be gruelling, but it’s nothing compared to the daily challenges many families in our area face.

“Whether you can donate, cheer us on, or share our story – it all makes a difference.”

Amy will be joined by Hollie Labunsky, a teacher of Economics, Criminology and Business at Treorchy Comprehensive School, who shares both her passion for cycling and her commitment to the cause.

The pair’s route is as follows:

  • Day 1: Fishguard to St Clears – 66 miles
  • Day 2: St Clears to Llanelli – 53 miles
  • Day 3: Llanelli to Caerphilly – 63 miles
  • Day 4: Caerphilly to Bath – 75 miles
  • Day 5: Bath to Windsor – 107 miles
  • Day 6: Windsor to Greenwich – 50 miles, finishing with a ride through Central London

Cherrie Bija, CEO of Faith in Families, described the cyclists as “absolute superheroes.”

She said: “Amy and Hollie are absolute superheroes. Their journey isn’t just about miles – it’s about impact. Every pedal they push brings us closer to helping more children in crisis, more families in need, and more communities in recovery.”

Faith in Families delivers critical support to families affected by poverty, trauma and crisis. Through initiatives such as Community Cwtches, one-to-one therapy, family support, and Wales’ first Multibank – Cwtch Mawr – the charity provides essentials including clothing, hygiene products, school uniforms and warm bedding to those most in need.

To support Amy and Hollie’s Easter ride and help Faith in Families continue its vital work, donations can be made at: https://localgiving.org/fundraising/Fish-Don

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Business

New build property in Begelly to become holiday let

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AN APPLICATION to demolish a Pembrokeshire storage building, replacing it with a new build holiday let has been granted, after a previous scheme for its conversion was refused, only being allowed on appeal.

In the application to Pembrokeshire County Council, K & M Ferney, through agent James Dwyer Associates, sought permission to replace the building with a new holiday let at Chronicle Park, Parsonage Lane, Begelly.

The initial 2021 application for a change of use was refused by county planners but allowed on appeal in late 2022.

A supporting statement said: “The planning inspector, in their decision, confirmed the proposal to convert a storage building into a holiday let, including an increase in the height of the building and the addition of a porch, met the local planning authority’s policies and should be allowed.

“In short, the proposal was acceptable in principle as well as in relation to its effect on the character of the surrounding location.

“Given it is now established that a building for holiday lets of that scale and in that location, is acceptable, it is not unreasonable to seek to ensure that the development is the best it can be in terms of its appearance, outlook, facilities, car parking, and importantly the privacy and enjoyment of those using the holiday let, and those occupying the adjacent dwelling.

“Accordingly, the most practical solution would be to provide a new building of the same scale, as approved, to meet those aims, and in doing so provide a structure that meets the latest environmental and sustainability requirements, rather than the inevitable compromised outcome, in converting an existing building of relatively poor quality.”

An officer report for the latest application, recommending approval, said: “The proposal is to replace an existing storage building located within the curtilage of Chronicle Park which has extant planning permission for a change of use and conversion into a holiday let.

“The new building would also be for holiday use and would have positive social impacts through the provision of additional accommodation on offer within the local vicinity. It would have positive economic benefits by providing an income stream to the applicant, expenditure on building materials and labour during the construction phase and expenditure from tourists within the local economy.”

The application was conditionally approved by county planners.

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