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Business

Welsh Government releases additional £100M business support

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The latest phase of the Welsh Government’s Economic Resilience Fund has benefited from the release of a further £100million from ministers within 72 hours of launch, due to a massive demand.

More than 6,000 grant applications from small and medium sized businesses and social enterprises were received within 24 hours of the launch on Friday – an unprecedented response, revealing the scale of the challenges facing Welsh businesses.

The Fund aims to complement and fill the gaps left by UK Government schemes such as the Job Retention Scheme, with grants of up to £10,000 for micro-enterprises and up to £100,000 for SMEs and a light touch appraisal system designed to get money to businesses with the minimum of delay – as well as a new loan fund administered by the Development Bank of Wales.

Less than three weeks since the First Minister announced the intention to create the Fund, the Welsh Government has released a further £100 million, taking the grant fund to £300 million. This will supplement this latest phase of support, providing non-repayable grants to microbusinesses, SMEs and those large businesses of critical, social or economic importance to Wales.

The Fund has been warmly received by trade union and business organisations, with the Institute of Directors calling it ‘very welcome news for business owners and managers who are desperate for all the help they can get at this difficult time’. The South and Mid Wales Chambers of Commerce has called ‘the rapid response to date’ of the Welsh Government in supporting the economy of Wales ‘impressive’. The Wales TUC welcomed ‘additional funding to address the gaps’.

Minister for Economy, Transport and North Wales Ken Skates said:  “We knew that even with the help offered by initiative such as the Job Retention Scheme, there was a massive need for quick access to grant funding if Welsh businesses were to survive this unprecedented economic shock. Whilst in order to make the scheme quick and simple we needed to take tough decisions over eligibility – like requiring businesses to be registered for VAT as a way of having to check on their trading history – it is clear from the level of response received that the Economic Resilience Fund is plugging a gap in UK Government support and providing much needed financial reassurance to many businesses at this challenging time. We will continue to review support and consider how we can develop it over the coming days.

“The rate of applications has been massive and unprecedented. This is the second time in a matter of weeks that access to Welsh Government funds aimed at easing cash flow pressures for Welsh business have quickly reached capacity, and we have responded with pace to release a further £100m into this phase of the fund.

“In these difficult and demanding economic times we have worked hard to free up resources to create such a large Fund despite the huge demands on our budget, and to strike a balance between supporting as many enterprises as possible and making a meaningful contribution to each one’s survival, as well as asking each recipient to sign up to the principles of the economic contract.

“Though we applaud much of what the UK Government has done, there is an urgent need to see more of the promised lending guaranteed by the UK Government getting to the front line. The UK Government must continue to support and press the high street banks to be much more responsive to the needs of our businesses at this difficult time.”

Finance Minister Rebecca Evans said: “The Economic Resilience Fund is part of more than £2bn of support that we have made available to help businesses and charities during these incredibly difficult times.

“We know that support for business is crucially important but whilst we are doing everything we can in Wales to plug any gaps and provide the best possible financial support to businesses, it is clear there are further steps that the UK Government needs to urgently take.”

The Economic Resilience offers financial support to help businesses, charities and social enterprises deal with the coronavirus crisis and will be vital in helping organisations manage cash flow pressures. It is a unique additional funding stream for Wales and was designed to address gaps not currently met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.

The first stage of the Fund saw the £100 million Development Bank of Wales’ loan scheme fully subscribed in little more than a week. Applications are currently being processed and some businesses have already received funding. It is anticipated that the Development Bank will have processed all applications received within the month.

To ensure that money reaches businesses as quickly as possible more than 120 additional Welsh Government and Business Wales staff have been diverted onto processing applications and supporting businesses and organisations in this latest stage of the Fund.

Business

Pembrokeshire coach house to be converted into holiday let

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PLANS to convert a Pembrokeshire coach house barn as part of the expansion of a local holiday let business has been approved.

In an application to Pembrokeshire County Council, Mr and Mrs Rodney sought permission for the conversion at Johnston Hall, Church Road, Johnston, having recently purchased the existing business.

A supporting statement through agent Hayston Developments & Planning Ltd said: “The business currently consists of three self-catering units of which two are within Johnston Hall and a third is a detached barn conversion as a disabled friendly holiday unit. This third unit has recently been completed and is open for business. All three existing holiday units offer high-quality visitor accommodation set within an attractive garden and wider grounds setting.”

More recent applications have been submitted for the site, including a scheme for three shepherd huts and a new covered swimming pool, with the latter to serve both personal use and for on-site holiday makers, which was refused permission last summer.

“Although this application was refused in July 2024, it is clear from reading the delegated report that there was no objection to the swimming pool element and that the refusal was solely in regard to the proposed three shepherd huts (i.e. siting and conflict with planning policy),” the statement says, adding: “A revised application for the provision of the covered swimming pool has recently been resubmitted for consideration by the council.

“A further stage of the business is to convert the two-storey traditional stone coach house building, located to the immediate east of the main house, for use as holiday accommodation, thus strengthening my client’s holiday let business.”

An officer report recommended approval for the holiday let, comprising five bedrooms over two levels of accommodation with associated car parking provision and external amenity space, said

The application was conditionally approved by county planners.

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Business

Tenby caravan park could be set for huge redevelopment

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PLANS to redevelop a Pembrokeshire caravan site to create “a notably higher quality” facility which will actually see less pitches have been submitted.

In an application to Pembrokeshire Coast National Park, Hean Castle Estate seeks permission for the redevelopment and extension of the existing Rowston Holiday Park, New Hedges, near Tenby, including the installation of bases for the siting of caravans; demolition of buildings; and the conversion of an agricultural barn to a residential dwelling, along with associated works.

Alongside Rowston, Hean Castle Estate owns and manages land and property locally including nearby Scar Farm Holiday Park with 145 owner-occupied static holiday homes and Coppet Hall Beach Centre, as well as agricultural, forestry and residential properties.

The proposals will see the actual number of holiday accommodation pitches at Rowston decrease from 225 to 187, “while making significant environmental enhancements to landscaping, visual effects, biodiversity and the highway network,” the applicants say.

A supporting statement through agent Lichfields says: “Substantial investment will be made by Hean Castle Estate that will result in the removal of dense and visually prominent caravans in linear layouts which will be replaced with lower density, relaxed layouts of muted colours that are embedded within extensive new native tree and hedgerow planting.

“The shift to create a notably higher quality caravan park will attract new and repeat visitors across most of the year, reinforcing the tourist accommodation offer in the National Park, in line with the objectives of the Local Development Plan.”

It says Rowston was previously operated by a third party under lease but its layout no longer meets “the demands of the modern tourism industry, and the lack of any substantial landscaping on the Park means that it does not fit with the estate’s ethos of maintaining a working landscape”.

It adds: “Hean Castle Estate aspires for Rowston Holiday Park to provide an attractive, well-landscaped retreat with mature trees and hedgerows. The static caravans would be sold to private owners and would not be available for sub-let.”

The proposed development includes the removal of the remaining existing bases, and installation of new bases for the siting of 172 static caravans across the existing holiday park and proposed extension area, with 95 bases in the existing park and 77 in the extension area, 15 touring pitch bases in the existing park, the demolition of former laundrette and diner buildings, demolition of two agricultural buildings, the conversion of a barn to manager accommodation, the creation of 273 parking spaces, and other works.

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

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Business

House prices edge up in Wales as economic concerns hit confidence

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HOUSE prices in Wales continued to edge upwards in March, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. However, short-term expectations for both prices and sales have declined, as economic uncertainty begins to weigh on market sentiment.

A net balance of 6% of Welsh surveyors reported that house prices were higher over the past three months—the first quarter of 2025—although the increase was marginal.

Despite the slight rise, confidence in the near-term outlook has weakened. A net balance of -24% of respondents now expect house prices to fall over the next three months.

Sales expectations have also taken a downturn. A net balance of -39% of Welsh respondents anticipate a fall in sales during the second quarter of the year, a significant drop from the 12% expecting growth in February.

The decline in optimism follows a fall in demand last month. A net balance of -25% of respondents reported a reduction in new buyer enquiries, while agreed sales also slipped, with a net balance of -7% reporting a fall—marking the second consecutive month in negative territory.

On the supply side, however, there was a more positive signal. A net balance of 24% of Welsh surveyors said there had been an increase in new instructions to sell.

Looking further ahead, the longer-term outlook remains more upbeat. Although the 12-month sales balance has now turned negative, a net balance of 33% of Welsh respondents still expect prices to be higher in a year’s time.

In the lettings market, a net balance of -17% of Welsh respondents reported a fall in tenant demand in March, while landlord instructions fell sharply, with -50% reporting a decline. Nonetheless, rents are expected to rise in the short term, with a net balance of 33% anticipating increases over the next three months.

Anthony Filice FRICS of Kelvin Francis Ltd in Cardiff said: “There are increased levels of instructions and a healthy level of viewings. Sales are being regularly agreed and vendors are increasingly taking advice on accepting offers.”

On the lettings market, he added: “There is a healthy choice of properties available, but with rising rents, tenants are taking time to select. The lower-priced properties are letting the quickest.”

RICS Chief Economist Simon Rubinsohn commented on the UK-wide picture: “The expiry of the stamp duty break was always likely to trigger a pause in activity. However, the latest results—and anecdotal evidence from respondents—suggest sentiment has also been dampened by the recent wave of negative macroeconomic news.

“Going forward, much will depend on the broader economic impact of the emerging trade war and how the Bank of England responds. While longer-term expectations remain relatively resilient, they could shift quickly if global headwinds intensify.”

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