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Construction output falls

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RISING costs and uncertainty relating to Brexit are to blame for the sharp drop in output growth in January 2019, the Federation of Master Builders (FMB) has said in response to the latest Purchasing Managers’ Index data (PMI).

The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index incorporates survey results provided by construction firms throughout the country.

A reading above fifty suggests the construction sector is expanding, while a reading below fifty suggests the construction sector is in contraction.

The January 2019 PMI data revealed a fall from 52.8 in December to 50.6 in January, against the neutral reading of 50.0. January data pointed to a loss of momentum for the UK construction sector, with business activity growth grinding to its weakest for ten months.

All three categories of construction output recorded weaker trends than those reported in December.

Residential work was the strongest performing area, although the latest expansion was only modest and the slowest seen since March 2018. Civil engineering activity increased marginally, with the rate of growth much softer than December’s 19-month high.

Commercial work was the weakest performing area of construction output in January. Latest data indicated a decline in work on commercial construction projects for the first time in ten months. Anecdotal evidence suggested that Brexit-related anxiety and associated concerns about the domestic economic outlook continued to weigh on client demand.

New business growth eased to an eight-month low in January.

Construction firms widely commented on softer demand conditions and longer sales conversion times, reflecting a wait-and-see approach to spending by clients. Concerns about the near-term outlook for new projects resulted in more cautious staff hiring policies at the start of 2019. The latest survey pointed to the slowest rise in employment numbers since July 2016.

However, construction firms remain positive about the outlook for business activity in 2019. Around 41% of the survey panel anticipate a rise in output, while only 16% forecast a fall.

Optimism had, however, fallen month on month. Large-scale civil engineering projects were cited as a key source of optimism, while Brexit uncertainty was the most commonly cited concern.

Tim Moore, Economics Associate Director at IHS Markit, which compiles the survey: “UK construction growth shifted down a gear at the start of 2019, with weaker conditions signalled across all three main categories of activity.

“Commercial work declined for the first time in ten months as concerns about the domestic economic outlook continued to hold back activity.

“The latest survey also revealed a loss of momentum for house building and civil engineering, although these areas of the construction sector at least remained on a modest growth path.”

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply said: “The sector suffered a sharp drop in output growth in January, and the softest rise in purchasing volumes since September 2017, as Brexit continues to hamper progress and dampen client confidence.

“The biggest shock came in the form of job creation which has managed to suffer the slings and arrows of Brexit highs and lows with solid hiring since the referendum result. Employment rose at the slowest rate since July 2016 and with optimism also in short supply, the sector only needs a small nudge to tip it closer to a recession.”

Commenting on the results, Brian Berry Chief Executive of the FMB, said: “The latest PMI data show a slowdown in growth in construction with business activity growth easing to its weakest for ten months. The ongoing political uncertainty is partly to blame for this setback.

“Political uncertainty is the enemy of construction firms that rely on the spending power of homeowners to commission home improvement projects. The UK is set to leave the EU next month, and yet we are still none the wiser about what the future holds. Given these intense headwinds, it should not be surprising that the sector suffered such a sharp decline.”

Mr Berry continued: “Alongside the political uncertainty, the cost of doing business is also rising for construction firms up and down the country. Material prices have been rising steadily since the depreciation of sterling following the EU referendum.

“Looking ahead, material prices are expected to continue to cause a headache for the construction industry with recent research from the FMB showing that 87% of builders believe that material prices will rise in the next six months. What’s more the construction skills crisis means that key trades are extremely difficult to recruit and the upshot of this is rising wages in construction.

“Tradespeople know they can command higher salaries than they did previously as workers are scarce, and this means a squeeze in margins for firms. This will only worsen if the post-Brexit immigration system that the Government has planned goes ahead.

“If the sector isn’t able to draw upon crucial EU workers of all skill levels, who have so far served to mitigate this shortage, the slowdown of growth will continue.”

 

Business

Glass theft warning as pubs prepare for busy summer

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PUBGOERS are being urged to leave their pint glasses behind this summer amid warnings that thefts are adding pressure to already struggling pubs.

The call comes after Jeremy Clarkson revealed that his Oxfordshire pub, The Farmer’s Dog, is losing up to 400 pint glasses a week.

Small business comparison site Bionic said the issue is not confined to one venue, with millions of adults admitting they have taken tableware from pubs, bars or restaurants.

Laura Court-Jones, Small Business Editor at Bionic, said: “Many people see taking a pint glass home as a harmless act, but the costs can quickly add up for pubs, bars and restaurants already facing rising expenses and tight margins.

“If you want to support UK hospitality and help your favourite venues thrive this summer, leave all pint glasses behind.”

Bionic said glass theft can also have consequences for customers.

Ms Court-Jones added: “Stealing glassware from a pub might seem like a minor offence, but it is still theft. Licensed premises have the right to refuse service and may bar individuals caught stealing.

“In some cases, the police may be called. While a prison sentence is unlikely for a minor offence, individuals may face a formal warning, a fine, or a criminal record.”

The company said pubs and bars can reduce losses by using CCTV, setting clear house rules, switching to unbranded glassware, and checking whether their insurance covers stolen or damaged stock.

Hospitality businesses across the UK have faced rising costs in recent years, including energy, staffing, food, drink and supplies, with many warning that even small losses can have a serious impact on margins.

Caption: Jeremy Clarkson at The Farmer’s Dog pub, where glass theft has reportedly become a major problem.

 

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Business

Planners reject farm’s sheep milk gin distillery expansion

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A CALL to keep a building which would partly be used a distillery at a Pembrokeshire farm which produces award-winning sheep milk-infused gin has been turned down by county planners.

In an application to Pembrokeshire County Council, Steven and Julie Ayers of Fifth Flock Spirits Ltd through agent Johnston Planning Ltd sought permission for the retention of a replacement building for farm diversification purposes incorporating a gin distillery with associated function/tasting room, reception area for farm businesses, including the distillery, a kennels and caravan site, along with offices and associated storage facilities at Nash Mountain Farm, Sardis.

Two previous similar 2024 and 2025 applications have been refused, the latest scheme removing some previous elements.

A supporting statement said the building would be used for farm diversification purposes for a number of established rural enterprises on the holding “but primarily in connection with Fifth Flock Spirits Ltd, a family run drinks company specializing in gin infused with milk derived from the resident flock at Nash Mountain”.

It said the 2023-erected building had replaced an earlier long-standing dilapidated farm building on the site, and is intended to play host to the three established farm enterprises which are run in conjunction with the main agricultural operation: Nash Mountain Kennels, Nash Mountain Caravan and Camping Site and primarily Fifth Flock Ltd.

It said internal works had yet to be completed, and, in addition to the retention of the building, the application also seeks permission for some external works which have not yet been carried out.

The statement said the Ayers family has farmed at 26ha Nash Mountain, which has a flock of 168 East Friesian sheep, for some five generations, the limited acreage meaning “the agricultural mainstay is not sufficient to sustain a viable business,” leading to the farm diversifications, with Fifth Flock the latest.

It said, in addition to the main farming operation, Nash Mountain also gains income from an on-site wind turbine, a caravan site, a boarding kennels with cattery, and Fifth Flock Ltd.

On the gin side, the statement says: “Fifth Flock Spirits Ltd Fifth Flock has operated from Nash Mountain since August 2025. It is at core currently a drinks enterprise based on the production of gin and rum infused with sheep’s milk, however, as set out in the accompanying business plan, the intention is to expand the offer into other sheep-based products to capitalise on the home flock.

“Since launching the enterprise has exceeded expectations with strong demand and accolades including A Taste of Pembrokeshire Award at the Pembrokeshire Food and Farming Awards in December 2025.

“Firth Flock currently source their gin from an independent distillery in Gorgeddan, Ceredigion however the intention, as reflected in this submission, is to develop the distilling element on-site and include it as part of an immersive visitor experience focussing on the home flock.

“Firth Flock has rapidly become a cornerstone of the enterprise at Nash Mountain and whilst the building at the centre of this proposal may have been premature there is a strong case for its retention as part of the overall rural enterprise on the holding.”

It adds that the Ayers are actively exploring diversification into other wool and sheep-based products.

The application was refused on the grounds including it was not demonstrated a countyside location was needed and there was not “sufficient evidence of a genuine and established rural enterprise necessitating the development,” adding: “In particular, the primary distilling process does not currently take place at the site and instead relies on off-site production, with only a future aspiration to relocate such activities.

“As a result, the proposal represents a speculative form of development that lacks a clear and direct functional link to the agricultural holding.”

It went on to say the scale of the proposals “introduces a level of intensity and built form more akin to a standalone commercial or tourism enterprise, rather than a modest farm diversification scheme”.

 

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Business

Plans for Ireland-UK fibreoptic cables to be connected at Pembrokeshire

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PLANS by a Vodafone phone company subsidiary to bring fibreoptic cables across the sea from Ireland to a Pembrokeshire seaside beach village in order to improve broadband coverage have been lodged.

In an application to Pembrokeshire Coast National Park, Apollo Submarine Cable Systems limited, through agent APEM Group, seeks permission for the construction of four underground telecom chambers and interconnecting ducts, along with Horizontal Directional Drilling (HDD) underneath Brandy Brook, Newgale, and the construction of one HDD bore-to-sea outfall.

A supporting statement accompanying the application says the scheme would form the onshore part of a project to bring a fibreoptic cable onshore from Kilmore Quay, Wexford, Ireland to a site at Newsurf Shop car park, Sands Café Car Park and Duke of Edinburgh Inn, Newgale.

It says the majority of the project is subterranean, with very minor above ground works are proposed, which comprise the installation of a manhole cover.

It adds: “To facilitate improved internet connectivity, the applicant is proposing the installation of a fibreoptic telecoms cable (the Beaufort cable) from Kilmore Quay, Wexford, Ireland to Newgale.

“The project is to facilitate the installation of the Beaufort cable, as it comes ashore in Wales and to link it into the wider network, which will be operated by Vodafone’s wholly-owned subsidiary Apollo Cable System Limited in the UK.”

It says the project would see three underground telecom chambers and a 120-metre interconnecting duct, the 87-metre HDD underneath Brandy Brook, launching from the receiver pit located within the Site, along with the construction of one HDD bore-to-sea outfall, in a subtidal area of Newgale bay, of approximately 920 metres, and one underground telecom chamber and interconnecting duct.

Citing a report on digital connectivity, it says 5G geographic coverage has seen improvements but is still relatively low at 57 per cent of Wales’ landmass, with 4G the primary service.

That report says there is a difference in full fibre coverage between urban and rural areas (83 per cent versus 59 per cent) and highlighting a need for further coverage.

On the scheme itself, the statement says short-term noise and disruption to local residents “is anticipated during the construction phase however this will be limited to 57 days,” adding: “The proposed drilling operations are not to be continuous and will be limited to approximately 20 minutes in each hour,” the works in total expected to last 91 days after which land will return to its former use without restrictions.

It goes on to say: “The HDD is specifically designed to mitigate the risk of any shoreward movement of the shingle bank and beach level changes. The use of HDD reduces the likelihood of potential environmental impact on the landscape and seascape.

“The project is not anticipated to interact with Brandy Brook. All drilling works will take place within excavated launch pits and all construction works will be confined to the hardstanding of the car park.”

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

 

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