Business
Construction output falls as productivity shrinks
THE GOVERNMENT and Parliament must break the Brexit deadlock and find a way forward warns the Federation of Master Builder (FMB), in response to the latest Construction PMI data, which shows another drop in construction output.
The March 2019 PMI data revealed an Index score of 49.7, up slightly from 49.5 in February, against the no change threshold of 50.0. This points to a sustained decline in construction output, representing the first back-to-back fall in construction output since 2016. While the residential building sector enjoyed an upturn, commercial construction was the worst performing area.
Commenting on the results, published this morning, Sarah McMonagle, Director of Communications at the FMB, said: “The construction industry is being seriously affected by Brexit uncertainty as evidenced by two very worrying sets of results for construction output in the first quarter of 2019.
“Businesses have been waiting for politicians to come to some resolution for far too long now, and it’s time that this deadlock was broken. It’s not surprising employers are finding it hard to plan for the future, when we don’t even know when, or indeed if, we’re leaving the EU. Today’s results are a reminder of just how vulnerable the construction industry is to political turmoil as confidence among consumers and contractors continues to wobble.”
Ms McMonagle concluded: “Brexit uncertainty and the construction skills shortage have created a perfect storm in our industry.
“Around 9 per cent of construction workers in the UK are from EU countries, but we know from speaking to small construction employers that many of these skilled workers are starting to return, whether that’s because of strengthening economies elsewhere, or that they simply don’t feel welcome anymore. This is compounding an already severe construction skills shortage, and I’m worried that the Government’s post-Brexit immigration system will make it even worse. For example, the system will not allow Level 2 tradespeople to live and work in the UK for more than 12 months at a time. At the same time, the Government’s figures last week show that the number of Level 2 apprenticeship starts among our domestic workforce is dropping.
“It’s quite simply not possible to build the homes and infrastructure we need without bricklayers, carpenters and plasterers. The Government and industry must work together to attract more people into the industry, by offering them high quality training with clear career pathways for progression but in the meantime we need sustained access to tradespeople of all skill levels for the industry to continue being open for business.”
Elsewhere in the economy, the Federation of Small Businesses has expressed concern at the UK’s productivity growth in Q4 of 2018 decreasing for the second consecutive quarter.
Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “Today’s data highlights yet again the impact of the political and economic uncertainty to the economy.
“Small business confidence has fallen through the floor as firms face a trying time amid a fragile economy.
“While there were some positives in the data such as a 0.4% productivity increase in services, there was a significant 1.1% decrease for manufacturing.
“Small firms are not only contending with unprecedented uncertainty, they are also dealing with a raft of new cost increases and reporting requirements.
“Rising labour costs have continued with the introduction of Making Tax Digital, fresh hikes to business rates and a further increase in auto-enrolment pension contributions.
“In order to improve productivity, key areas that must be addressed include management and leadership, broadband connectivity and the scourge of late payments.
“All this amid the ongoing uncertainty over the future of the UK’s relationship with the EU which shows no sign of reaching a resolution.
“Productivity will only continue to decline unless the Government can do more to step up and back British businesses.”
Business
Minimum alcohol price to rise by 30 per cent as retailers warn of border impact
Shopkeepers say hike may push trade into England while ministers insist policy will save lives
INDEPENDENT retailers have reacted cautiously after the Welsh Government confirmed a 30 per cent increase to the minimum unit price (MUP) for alcohol in Wales.
From October 2026, the price will rise from 50p to 65p per unit, meaning some of the cheapest drinks will see noticeable increases. A can of beer currently sold for £1 will cost at least £1.30 under the new rules.
The change brings Wales into line with Scotland, where a similar pricing structure already applies.
The Federation of Independent Retailers (the Fed), which represents many small convenience stores and off-licences, said it does not oppose the move in principle but warned it could hurt businesses near the border.
Clive Birkby, the Fed’s Wales president, said: “The Fed has raised no objection to this change which mirrors that in Scotland. In the past, supermarkets have sold alcohol as super cheap loss-leading products – something which is damaging to small shops and also to those advocating responsible consumption.
“We have highlighted concerns, though, for how this policy will impact our members who are close to the border with England, given that England does not have MUP. We will continue to monitor the impact of this policy change and what it might do to reduce problem drinking and the health and social impact of that.”
He added that both the Welsh Government and Westminster should invest more in public education about responsible drinking.
Minimum pricing was first introduced in Wales in 2020. Last year the Fed responded to a government consultation on the proposed increase, calling for clearer guidance for retailers and better communication ahead of any changes.
Announcing the rise, mental health and wellbeing minister Sarah Murphy said the evidence showed minimum pricing reduced alcohol-related harm.
“Cheap, high-strength alcohol disproportionately affects hazardous and harmful drinkers,” she said. “The evidence is clear – minimum unit pricing works. We have taken a decision which will save lives and help protect many people from the harms caused by drinking too much alcohol.”
However, Welsh Conservatives criticised the policy, arguing it will simply increase costs for shoppers during a continuing cost-of-living squeeze.
The new pricing rules will come into force across Wales in October next year.
Business
Tenby pub toasting 150 years at the heart of community life
A LONG-ESTABLISHED village pub in Tenby is preparing to mark a major milestone this year, with celebrations planned to honour more than a century and a half of pulling pints and bringing people together.
The Evergreen Inn is believed to date back to the 1860s, opening its doors at a time when the railway was transforming the coastline. Local tradition says the pub first served labourers working on the nearby viaduct, offering ale and shelter to navvies who were too far from town to make the journey for refreshments.

More than 150 years later, little has changed in spirit.
Today, the Evergreen remains firmly rooted in everyday community life, with regulars forming the backbone of trade and a steady mix of families, walkers and holidaymakers passing through its doors.
Manager Mel Sanders said the pub’s strength lies in familiarity and welcome.
“We’re very much a locals’ pub,” she explained. “Most people who come in know each other. It’s somewhere you can pop in for one drink and end up staying the evening.”
Recent years have seen a revival in fortunes, with themed nights, quizzes and live music drawing crowds back through the doors. Charity fundraising has also become a big part of the calendar, with thousands of pounds raised for health and animal welfare causes.

A popular fixture is live piano and singalong sessions hosted by a well-known regular, helping support lifeboat crews and other good causes.
The pub’s offer goes beyond the bar. Darts teams, card games and acoustic evenings fill the week, while dogs and children are equally welcome, reinforcing its reputation as a proper, old-fashioned local.
Owners Paul and Kat have also given the interior a gentle refresh, nodding to the building’s railway roots with period touches, warm wood finishes and a cosy stove for winter nights.
Despite rising costs across the trade, the Evergreen has kept prices competitive and introduced a loyalty scheme to reward those who treat it as a second home.

With anniversary events planned over the coming months, staff say the focus will be less about looking back and more about keeping the tradition alive.
After all, for generations of Tenby residents, it hasn’t just been a pub – it’s been the village’s living room.
Business
Wiston Pembrokeshire Airbnb garage approved by planners
A CALL to allow a Pembrokeshire village garage, which once housed an NHS worker during the Covid pandemic, to stay as an Airbnb holiday let has been given the go-ahead.
In an application to Pembrokeshire County Council, Mark and Ann Pugh, of Wolfscastle, sought retrospective permission on behalf of their son and daughter-in-law, Stephen and Natalie Pugh, for the conversion of a single storey garage to a self-catering holiday let ‘Meadow View’ within the grounds of Little Longhouse, Wiston.
A supporting statement said, during 2017 the garage was converted into a habitable space, used by family and friends between July 2017 and March 2020, before being let to an NHS worker up until December of that year during the Covid lockdown.
It added: “In 2021 it continued to accommodate family and friends. In 2022 and 2023, the property was used as a self-catering holiday unit, advertised on Airbnb under the name Rose Cottage. Since the beginning of 2024, it has been marketed as Meadow View on Airbnb and Booking.com, continuing its role as a self-catering holiday unit.”
It added: “Meadow View is the second holiday rental at Little Longhouse, following the successful establishment of Clover Cottage, which has been operating as a holiday let since 2013. This application seeks retrospective consent for Meadow View as a second unit of holiday accommodation within an established holiday enterprise at Little Longhouse.”
It went on to say: “Meadow View further contributes to local accommodation diversity by offering a small, one-bedroom, ground-floor unit, making it particularly suitable for individuals with limited mobility.
“The holiday letting business at Little Longhouse is operated and managed primarily by the applicants’ daughter-in-law, who resides at Little Longhouse. The business is her primary source of income/employment and helps ensure that residing in the rural community of Wiston is viable.”
The application was conditionally approved by county planners.
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