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Chancellor’s economic update includes VAT cut for hospitality sector, and customer discounts

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THE CHANCELLOR, Rishi Sunak, set out the measures in his summer economic update in the House of Commons on Wednesday (Jun 8), as he faces pressure to assist those who are most vulnerable to the financial crisis.

The Chancellor said he will cut VAT from 20% to 5% for food if people eat out to help those businesses which he said had been hardest hit by the coronavirus pandemic.

The chancellor announced discount to encourage people to eat out in August.

He says restaurants, pubs, bars and hotels as well as other attractions will be able to claim the money back within five days. It had been reported he was considering giving all UK adults a £500 voucher to spent with companies hit by coronavirus, but the Chancellor has decided not to go ahead with that proposal.

Another announcement is that employers who take back staff on furlough and continuously employ them until January will get £1,000 cash bonus per employee.

Instead Sunak announced a discount worth up to £10 per head for eating out in August. He said his final measure has never been tried in this country. It is an “eat out to help out scheme”, offering customers as discount worth up to £10 per head when they eat out from Monday to Wednesday in August.

Speaking in the Commons today, he said: “Our plan has clear goals, to protect, support and retain jobs.”

Regards furlough scheme, he said it must wind down, adding: “flexibly and gradually supporting people through to October” but that he is introducing a bonus for employers who bring staff back from furlough.

Employers who bring someone back from furlough and employ them through to January, paying them a minimum of £520 a month, will receive a £1,000 bonus.

He says that “in total we have provided £49bn to support public services since the pandemic began”.

He added: “No nationalist can ignore that this help has only been possible because we are a United Kingdom.”

Mr Sunak says the UK economy has already shrunk by 25% – the same amount it grew in the previous 18 years.

He also announced:

  • A £2bn kickstart scheme paying employers to take on unemployed 16 to 24 year olds for a minimum of 25 hours a week – he says the Treasury will pay those wages for six months plus a sum for overheads. He says there is no cap. This will apply in England and Wales.
  • VAT on food from restaurants, cafes, pubs and hotels will be cut until January 12 from 20% to 5%
  • Funding for apprenticeships and trainee-ships in England, there will be a separate announcement for Wales.
  • £1bn for the DWP to support millions of people back to work through Job Centres
  • A £2bn green homes grant in England to cover two thirds of the cost, up to £5,000, for energy efficient home improvements. Again the Welsh Government will have their own proposals on this given time.
  • A temporary cut to stamp duty in England and Northern Ireland.

Stephen Crabb has given his strong backing to the Chancellor’s coronavirus recovery plan, calling it “a huge step towards getting Pembrokeshire back on its feet”.

The Preseli MP said that the Chancellor’s ‘Plan for Jobs’ includes a £1000 bonus for businesses to bring back furloughed staff and the Kickstart scheme which will provide high quality work placements for unemployed youngsters. In England businesses will also be offered £1000 bonus to take on a trainee and £2000 for each new apprentice. Welsh Government has been given equivalent money to support their training schemes.

Speaking in the House of Commons following the Chancellor’s statement, Crabb said: “Make no mistake, this action to save a generation of young people from bearing the brunt of the economic crisis is incredibly positive and to be welcomed.”

The MP has previously warned about the prospect of a surge in unemployment as a result of the lockdown.

The Chancellor also announced a cut in VAT for the tourism and hospitality sector, giving a much needed boost to some of the sectors hardest hit by coronavirus. Early on in the lockdown, Crabb wrote to the Chancellor to call for a package of support for Tourism that included a VAT cut.

Responding to the announcement today, he said: “I am delighted that the Chancellor has listened to the proposals that many MPs from coastal areas have put forward. Tourism and hospitality need a real shot in the arm and the VAT cut will be very welcome.”

Today’s statement also saw the launch of a new ‘Eat Out to Help Out’ scheme, giving people 50% off meals out to encourage more families to eat out or get a takeaway during the month of August.   These measures will be important for Pembrokeshire’s many hospitality businesses who are still awaiting an announcement from Welsh Government on when they can open again.

On Friday Stephen Crabb will be bringing together more than thirty local pubs and restaurants for an online discussion with the County Council and others about how the sector can re-open safely and successfully.

 

Charity

Shalom House adapts to community needs amid financial struggles

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A HOSPICE in St Davids is finding new ways to support the community after financial challenges forced changes to its operations. Shalom House, a well-loved facility on Nun Street, has shifted its focus in recent years, balancing healthcare provision with its founding mission.

Established in 2007, Shalom House was originally designed as a five-bed hospice offering respite and palliative care. Its creation was made possible by the donation of the property from Elizabeth de Guise, a novelist with a deep connection to Pembrokeshire. However, rising costs and funding shortfalls have led to significant changes in how the hospice operates.

In late October, the closure of St Davids Surgery prompted Shalom House to repurpose two of its rooms for use by a branch surgery. The facility is now home to a service staffed by practice nurses under Hywel Dda Health Board, ensuring local residents continue to have access to healthcare.

Balancing priorities

While the move has been welcomed by many in the area, it has come at a cost. Shalom House now operates with three respite beds instead of five, a change that has sparked concern among some supporters.

“We had to make a difficult decision,” a spokesperson for the hospice said. “Our primary goal is to serve the community, and this arrangement allows us to do so in multiple ways. The branch surgery provides vital medical care while helping us generate income to keep Shalom House open.”

The hospice continues to offer day-care services to several patients each week, with additional respite care provided as resources allow. Trustees are optimistic that full capacity can be restored in the future, depending on funding.

Community campaign brings hope

Despite the challenges, Shalom House has received overwhelming support from the Pembrokeshire community. A recent campaign, “Save Shalom,” has seen donations increase dramatically, offering a glimmer of hope for the hospice’s long-term future.

Local resident and campaign volunteer, Jenny Williams, said: “Shalom House means so much to so many people. It’s more than a building—it’s a lifeline for families across the county. We’re determined to do everything we can to keep it running.”

Looking ahead

The trustees are exploring new ways to raise funds and expand services, with plans to launch a series of community events next year. They have also expressed gratitude for the continued generosity of local residents, whose donations remain crucial.

“Shalom House has always been about Pembrokeshire’s people,” said the spokesperson. “Every penny donated helps us provide care and support to those who need it most. We’re confident that, with the community behind us, we can overcome these challenges.”

For more information about Shalom House or to make a donation, visit www.shalomstdavids.org.

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Entertainment

A Christmas spectacular at St Davids Cathedral delights audience

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A CHRISTMAS celebration of music and song enthralled audiences at St Davids Cathedral on Saturday (Dec 14), as the St Davids Cathedral Choir and Vox Angelica presented A Christmas Spectacular. The event, which began at 7:00pm, offered a festive evening of performances set against the awe-inspiring backdrop of one of Wales’ most iconic landmarks.

The concert featured the talented harpist Bethan Semmens, who captivated listeners with her intricate and emotive playing. A Cardiff native, Semmens studied at the Royal College of Music and has performed at prestigious events across the UK and internationally. Her contributions to the evening brought an enchanting touch to the programme.

The night was packed with beloved seasonal pieces, showcasing both choral and soloist performances. Highlights included the timeless Good King Wenceslas, Winter Wonderland, and festive classics such as The Twelve Days of Christmas. The Cathedral Choir delivered stirring renditions under the vaulted ceilings, with carols and arrangements that beautifully resonated throughout the space.

Special moments featured solos by Harriet Pearce and Sophie Cooke, who lent their voices to favourites like There Is No Rose and Balulalow. The audience was further treated to a moving arrangement of A Ceremony of Carols by Benjamin Britten, performed in harmony with Bethan Semmens’ harp accompaniment.

A medley of carols encouraged audience participation, culminating in a joyful and spirited atmosphere. Families, friends, and visitors joined their voices for classics that brought warmth and festivity to the wintry evening.

The performance concluded with an uplifting recessional, leaving attendees with a sense of seasonal cheer. The Cathedral, adorned with Christmas trees and lights, provided the perfect setting for what many described as an unforgettable musical experience.

The Herald understands that A Christmas Spectacular was a resounding success, with plans already underway for next year’s event.

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News

Greyhound racing in Wales: Future hangs in balance as decision delayed until 2025

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THE WELSH GOVERNMENT’S decision to postpone a ruling on the future of greyhound racing until 2025 has sparked mixed reactions, with animal welfare groups voicing disappointment and industry representatives welcoming the extended timeline for discussion.

Welfare groups demand urgent action

Animal welfare organisations, including Dogs Trust, RSPCA Cymru, Blue Cross, Greyhound Rescue Wales, and Hope Rescue, have expressed dismay at the delay. The coalition, known as Cut the Chase, has long advocated for an end to greyhound racing in Wales, calling the postponement a missed opportunity to prevent further harm.

Their concerns mirror recent developments in New Zealand, where greyhound racing will be banned by August 2026 due to concerns over injuries and fatalities. Owen Sharp, Chief Executive of Dogs Trust, stated:
“The call to end greyhound racing in Wales has received overwhelming support from the animal welfare community, Members of the Senedd, and the public, with over 35,000 people signing a petition demanding change.

“It is unacceptable that so many dogs die or are seriously injured every year, all in the name of entertainment. Wales now stands alongside only a handful of countries, including England and Scotland, where this outdated and inhumane practice persists. The Welsh Government must take the only meaningful action to stop this cruelty: end greyhound racing once and for all.”

Public supports a phased ban

A consultation conducted by the Welsh Government revealed that 64.69% of respondents supported a phased ban on greyhound racing. Despite this, officials have opted to extend deliberations, with a final decision now expected in 2025.

Animal welfare groups highlighted troubling figures from the Greyhound Board of Great Britain (GBGB), which reported 359 racing greyhound deaths and 4,238 injuries in 2023 – a 47% increase in fatalities compared to the previous year. Concerns extend to off-track welfare, including reports of poor living conditions, inadequate nutrition, and lack of enrichment for retired greyhounds.

Industry defends its welfare standards

The GBGB has countered criticism by emphasizing welfare improvements at licensed tracks such as Valley Stadium in Wales. Mark Bird, GBGB Chief Executive, said:
“Valley Stadium’s licensing has brought significant welfare improvements, overseen by expert veterinarians and our national network of professionals. Racing greyhounds receive more oversight and protection than many pet dogs across Wales.

“We remain committed to working with the Welsh Government to promote and protect greyhound welfare through effective and proportionate regulation.”

Broader calls for change

The debate in Wales reflects a growing movement to end greyhound racing across the UK and beyond. In Scotland, a Proposed Prohibition of Greyhound Racing Bill aims to outlaw the sport, while New Zealand has committed to a ban, citing ethical concerns.

Decision delayed but debate intensifies

The Welsh Government has emphasized the need for thorough consideration before making a final decision. However, the delay has intensified divisions, with animal welfare groups urging an outright ban and the industry advocating for improved regulation as a viable alternative.

A final verdict is not expected until 2025, leaving the future of the sport – and the welfare of thousands of greyhounds – uncertain.

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