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Business

Businesses’ Brexit fears dismissed

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Airbus: Warned of risk of capital flight

THE RECENT conduct of Foreign Secretary Boris Johnson has led to fears that the future of the UK’s business relationships with Europe are of secondary interest to senior government ministers.

A strongly-worded statement from the CBI, warning policy makers to ‘focus on business priorities and put evidence above political ideology’ was greeted with Mr Johnson remarking ‘f**k business’.

Those remarks were preceded by the Foreign Secretary being recorded saying that the border with Ireland was a minor issue of little consequence in the context of Brexit.

The CBI subsequently suggested that it will ensure negotiators on both sides ‘are well equipped with the unequivocal economic facts’.

Whether the facts fit the Foreign Secretary’s preconceptions of what Brexit might mean for the UK’s businesses is open to question.

AIRBUS RAISES STAKES

A similar gap between reality and ideology was exposed by the warning from Airbus that – in order to continue to comply with the European regulatory framework – it might have to move its base of operations from Broughton in Clwyd, where it supports 6,500 directly employed jobs and businesses and the economy over a much wider area.

In the absence of a Brexit agreement, UK aerospace companies will not be covered by existing approvals. More than 10,000 original aircraft parts originate in the UK, the manufacture of which is covered by tight regulations requiring certification by the European Aviation Safety Agency. Should a single parts supplier not be certified, its parts cannot be installed and aircraft will not be delivered.

If a supply chain agreement is not reached with the EU, the consequences for the aviation industry selling into the EU trading bloc will be a disaster for the UK.

BUSINESSES TOLD TO BUTT OUT

However, the unwelcome intervention of facts in the Brexit narrative roused Health Secretary Jeremy Hunt to tell the BBC’s Andrew Marr that talking about job losses risked undermining the government in its negotiations with the EU.

“It was completely inappropriate for businesses to be making these kinds of threats, for one simple reason. We are in a critical moment in the Brexit discussions. We need to get behind Theresa May to deliver the best possible Brexit, a clean Brexit.”

Mr Hunt’s comments were supported by leading Brexit enthusiast Liam Fox, the Secretary of State for International Trade, who also suggested that businesses warning the government based on their own detailed knowledge of the regulatory regimes under which they work were somehow placing the UK Government’s negotiating position – which is as yet both unknown and possibly undetermined – at risk.

The key economic issue for businesses is ensuring the sort of continuity in trading arrangements which secures jobs and encourages investment. Large businesses need a significant amount of time to make decisions on the allocation of resources, particularly in the face of unpredictable trade policy by twitter approach of the US Government. Short of certainty, and faced with a capricious transatlantic trading partner which scraps trade agreements and treaties at short or no notice, businesses are understandably twitchy about their inability to plan and the absence of meaningful interaction with them by the UK Government’s crack Brexit team.

In a carefully-phrased statement to MPs, Business Secretary Greg Clark told MPs: “Any company and any industry that supports the livelihoods of so many working people in this country is entitled to be listened to with respect.

“The government has been clear that we are determined to secure a deal with the EU that meets the needs of our aerospace firms and the thousands of people whose livelihoods depend on them.”

IRISH TRADE KEY FOR WEST WALES

Meanwhile, businesses have struck back at the apparent indifference of the UK Government’s key Brexit ministers to the interests of businesses which stand to be affected directly should the UK reach no regulatory deal – or a poor regulatory deal – with the EU.

Business groups the CBI, Chambers of Commerce, Federation of Small Business, the Employers’ Federation, and the Institute of Directors are placing pressure on the government to reach agreement on trade, customs, and immigration.

Pembrokeshire’s MPs, Simon Hart in Carmarthen West and South Pembrokeshire and Stephen Crabb in Preseli Pembrokeshire, are in an intriguing position over the issue of Irish trade.

With major ferry ports in Pembroke Dock and Fishguard, both Conservatives have a dog in the race to ensure that trade with the Republic of Ireland is at least maintained at current levels.

100,000 lorries were carried to Ireland via ports in Pembrokeshire in 2015. Any disruption of that trade, by the introduction of customs and immigration checks for example, would significantly reduce the attractiveness of west Wales’ ports to businesses trading with Ireland. That is not, however, a one way street. The Irish Government is also keen to maintain access to the UK as an access point to mainland Europe.

While the ports are not in themselves major employers, the ‘ripple effect’ of any loss or reduction in through traffic and any subsequent job losses could be significant. And concerns have been magnified by Stena’s decision to scrap a significant investment plan in Fishguard.

When we asked to respond to the Foreign Secretary’s views on the Irish Border issue and the importance of trade with Ireland to Pembrokeshire, Simon Hart said: “I have spoken (very informally) to [Boris Johnson] to make that point, which he says he recognises. The border issue might be minor in the overall context of Brexit but it is nonetheless very important.”

Stephen Crabb told us: “I have said right from the start that the issues over trade between the UK and Ireland, including the question of the Northern Ireland border, are some of the most complex and important of the Brexit negotiations.

“For us in Pembrokeshire it is important because of our trade links with Rosslare and I have raised this matter with Ministers in Ireland, the Cabinet in Westminster. The commitment that the Prime Minister has given that there will be no additional trade barriers for East-West trade between the UK and Ireland is crucial and reflects the points that I and others have been putting to her.”

Business

Salon plans for Haverfordwest car valet site approved

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RETROSPECTIVE plans to change a Pembrokeshire car sales/valet area to include a barber shop and tanning salon have been given the go-ahead.

In an application to Pembrokeshire County Council, Zizo Barbers & Affordable Cars, of Cambrian Place, Haverfordwest sought permission for the change of use of previously granted valet and car sales area, the works completed in 2024.

A supporting statement through agent Hayston Developments & Planning Ltd said the former commercial garage business has been operating in several guises from the premises for many years and has included petrol sales, motor servicing and repairs, MoTs, vehicle valeting, car sales and customer parking.

This followed on from a 2011 permission for the partial demolition of the original commercial garage, with a later approval for the site refurbishment to provide a workshop, valeting and offices for the existing car sales.

A supporting statement said: “The proposed update to a change of use involves the replacement of a car valeting service, which took place under a covered area at the rear of the site by a wash and valet operation – and restricting this service to those cars being sold at the Cambrian Place site. The use of a former office / store as a barber shop.

“The use of the former customer waiting area as a tanning salon including a new moveable timber shed for use as a meet and greet facility and as a car sales office. Provision of a communal parking area. Whilst retaining the principal use of the site for the sale of used cars.

“It is therefore suggested that the proposal will reduce both the elements of noise and the generation of dust whilst improving air quality as substantially fewer cars being power washed and valeted as well as the visual impact of these activities in this very public location – and with adjacent residential properties.”

Haverfordwest Town Council had objected to the scheme on highway safety grounds, but an officer report recommending approval said: “Highways colleagues have advised that the mixed use at the site is not likely to generate a significant number of trips that would lead to congestion and/or road safety issues due to the hours of operation are suggestive of visitors in the non-peak hours over the course of the day.

“In addition, highways colleagues have confirmed recorded accident history is negligible at the site, with one accident in 2023 at the nearby junction as a result of a rear shunt.”

It also said that, as the site lies adjacent to the A40(T) Welsh Government as a highway authority were consulted on the application, but has not not issued a direction in respect of this application.

One letter of objection had also raised issues of traffic and highway safety, chemical and detergent waste from the site and occasional activity after 5pm.

The report said the cessation of the valeting/washing use will reduce water usage at the site and any activity outside normal hours was an enforcement matter.

The application was conditionally approved by officers.

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Business

Community council objections to Tenby Lidl store scheme

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PLANS for a new store on the edge of Tenby by retail giant Lidl, which has seen objections from the local community council, are likely to be heard next year.

In an application recently lodged with Pembrokeshire County Council back in October, Lidl GB Ltd, through agent CarneySweeney, seeks permission for a new 1,969sqm store on land at Park House Court, Narberth Road, New Hedges/Tenby, to the north of the Park Court Nursing Home.

The proposals for the latest specification Lidl store, which includes 103 parking spaces, would create 40 jobs, the applicants say.

The application follows draft proposals submitted in 2024 and public consultations on the scheme, with a leaflet drop delivered to 8,605 local properties; an information website, with online feedback form; and a public exhibition, held last December at the De Valence Pavillion in Tenby, with a follow-up community event held at New Hedges Village Hall, close to the site, publicised through an additional postcard issued to 2,060 properties.

Some 1,365 responses have been received, with 89 per cent of respondents expressing support for the proposals, the applicants say.

A supporting statement says: “Lidl is now exceptionally well established in the UK with the Company operating c.980 stores from sites and premises both within and outside town centres. Its market share continues to increase substantially, and the company is expanding its store network considerably. The UK operational model is based firmly on the success of Lidl’s operations abroad with more than 10,800 stores trading across Europe.

It adds: “The granting of planning permission for the erection of a new Lidl food store would increase the retail offer and boost the local economy.  The new Lidl food store would create up to 40 employment opportunities for people of all ages and backgrounds, providing opportunities for training and career development.  This in turn will create an upward spiral of economic benefits.”

Local community council St Mary Out Liberty Community Council has formally objected to the scheme, saying that, while it supports the scheme for a Lidl store in principle, recognising “the economic benefits a new retail store could bring,” it says the proposed location “is unsuitable, conflicts with planning policy, and cannot be supported in its current form”.

Its objections add: “The A478 is heavily congested in peak tourist months. A supermarket would worsen congestion, increase turning movements, and heighten risks to pedestrians, cyclists, and emergency access.”

It also raises concerns on the potential impact through “noise, lighting, traffic disturbance, and loss of quiet amenity” on a neighbouring residential care home.

An initial assessment by Pembrokeshire County Council, highlighted concerns about the visual impact, with the authority’s landscape officer commenting that the store would introduce “an intense urban function into an otherwise rural context”.

The report added: “It is not considered to be compatible with the character of the site and the area within which it is located; and furthermore, will lead to a harmful visual impact on the setting of the National Park.”

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

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Business

Senedd approves £116m transitional relief for business rates

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BUSINESSES facing sharp hikes in tax bills after the 2026 revaluation will see increases phased in over two years after the Senedd backed a new transitional relief scheme.

Senedd Members unanimously approved regulations to help businesses which face significant rises in non-domestic rates bills after a revaluation taking effect in April 2026.

The Welsh Government estimates the transitional relief will support 25,000 ratepayers at a cost of £77m in 2026/27 and £39m in 2027/28. The partial relief covers 67% of the increase in the first year and 34% in the second.

Mark Drakeford, Wales’ finance secretary, stressed the £116m scheme comes on top of permanent rate reliefs which are currently worth £250m a year. He said ratepayers for two-thirds of properties will pay no bill at all or receive some level of relief.

The former First Minister told the Senedd: “In providing this transitional relief scheme, we are closely replicating the scheme of relief we provided following the 2023 revaluation – supporting all areas of the tax base in a consistent and straightforward manner.”

The Conservatives’ Sam Rowlands expressed his party’s support for the transitional relief scheme which will help ratepayers facing sharp increases after the 2026 revaluation.

Conservative MS Sam Rowlands
Conservative MS Sam Rowlands

He said: “We are grateful that the Welsh Government has at least brought forward a scheme that will soften the immediate impact for thousands of Welsh businesses.

“We also understand that if these regulations are not approved or supported… this relief scheme will not be in existence. Many businesses across Wales would face steep increases with no protection at all and that is certainly not an outcome we would want.”

But the shadow finance secretary warned businesses up and down Wales are worried about the increase in rates that they are liable to pay.

Advocating scrapping rates for all small businesses in Wales, Mr Rowlands said: “We’ve heard first-hand from many of those in the hospitality and leisure sector, some of whom are facing increases of over 100% in the tax rates they are expected to pay.”

Responding as the Senedd signed off on the scheme on December 16, Prof Drakeford said the Welsh Government had to wait for the UK budget to know if funding was available. As a result of the time constraints, the regulations were not subject to formal consultation.

Prof Drakeford agreed with Mr Rowlands that voting against the regulations would not improve support, only eliminate the transitional relief package before the Senedd.

Finance secretary Mark Drakeford
Finance secretary Mark Drakeford

Earlier in Tuesday’s Senedd proceedings, former Tory group leader Paul Davies warned Welsh businesses have already been hit with some of the highest business rates in the UK.

He said: “The latest business rates revaluation has meant that some businesses are now facing rises of several hundred per cent compared with previous assessments…

“Whilst I appreciate that a transitional relief scheme will help some businesses manage these changes, the reality is that for many businesses it’s not enough and some businesses will be forced into a position where they will have to close.”

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