Wales records strongest year-on-year growth of any UK nation or region, according to Lloyds Business Barometer

WELSH business confidence rose in April as firms reported growing optimism about the wider UK economy, new figures show.

The latest Business Barometer from Lloyds found that confidence among businesses in Wales rose by eight points to 38% during the month.

That was despite overall UK business confidence falling by 11 points to 44% in April.

The survey found Welsh firms’ confidence in their own trading prospects remained unchanged at 46%, while optimism about the wider economy climbed 16 points to 30%.

When combined, those figures gave Wales a headline confidence reading of 38%, up from 30% in March.

Wales also recorded the largest year-on-year confidence growth of any UK nation or region and was the only area to report both year-on-year and month-on-month growth.

A net balance of 34% of businesses in Wales said they expected to increase staff numbers over the next year, up nine points on the previous month.

Looking ahead, Welsh firms identified investment in their teams as the main target area for growth, with 48% citing training and staff development.

Other priorities included introducing new technology, such as AI or automation, at 42%, and evolving products or services at 40%.

The Business Barometer, which surveys 1,200 businesses each month, has been running since 2002 and is used as an early indicator of UK economic trends.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year.

“UK businesses are resilient and adept at deploying strategies to defend growth in uncertain conditions. Over the past month, we’ve seen them opt for flexibility wherever possible.

“They’re building contingency into their short and medium-term plans, rather than expecting a rapid return to normal. Protecting margins has become more important.

“That means tougher cost scrutiny and a greater focus on balancing growth with profitability.

“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long-term value.”

Nathan Morgan, area director for Wales at Lloyds, said: “Wales is bucking the UK-wide trend when it comes to business confidence, increasing during April against the national trend.

“This confidence is the result of Welsh firms’ ongoing focus on investment to protect their position against future disruption.

“At Lloyds, we’ll continue to nurture this recent momentum of growth by working with businesses across the nation to equip them with the financial tools they need.”

Across the UK, firms’ confidence in their own trading outlook fell six points to 54%, while optimism in the wider economy dropped 17 points to 33%.

The East Midlands was the most confident UK nation or region in April at 53%, followed by London at 51% and the West Midlands at 49%.

PREVIOUSLY approved plans to convert a listed former clothes shop in Haverfordwest’s town centre to flats and a café have seen a fresh scheme presented, this time from the council.

Back in November 2023, members of Pembrokeshire County Council’s planning committee approved an application by Mr B Roscoe to convert the Grade-II-listed Pink Cat Shop, 24 High Street, to six flats and a café.

The building was first listed in 1974, due to its “… special architectural interest as good late Georgian style terraced front, with surviving staircase and C18 rear wing”.

The property has a long commercial history dating back to 1901, with it being originally used by Tom Davies the clothier; in recent years the basement and ground floors have been used as a café, with the upper floors remaining vacant.

Agent Evans Banks Planning Limited had said the upper floors of the building have been vacant for some five years, and the building was marketed for sale for two years without interest.

After that successfully approved scheme, a similar application has now been submitted by Pembrokeshire County Council itself for the Pink Cat building, again through agent Evans Banks Planning Limited.

A supporting statement accompanying the latest listed building application “follows the same overarching principles of development and reuse of the existing building, seeking to deliver residential flats while retaining the character and significance of the listed asset”.

It adds: “Although there are some differences in the detailed design and layout, the proposed works remain comparable in nature and impact to the previously approved scheme and continue to represent an appropriate and sustainable form of development for the site.”

It says internal works on the previous scheme “are designed to be reversible and avoid harm to the historic fabric, ensuring that the architectural and historic significance of the listed building is preserved whilst enabling a sustainable and viable use”.

Referring to the latest proposal it says: “In terms of accommodation, the proposal seeks the partial conversion of the existing use of the building but will retain the commercial element at the ground floor frontage aspect of the building, to ensure that the property continues to make a positive contribution to the vitality and viability of the town centre.”

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

A SCHEME to convert a Pembrokeshire town home to “well-designed shared accommodation” for five tenants has been submitted to county planners.

In an application to Pembrokeshire County Council, Marcelina Morgan, through agent CCS Solutions Ltd, seeks permission for a change of use of a dwelling at Cleddau View, Merlins Terrace, Haverfordwest to a house in multiple occupation.

A supporting statement said the existing four-bed home would, if approved, become a five-bed multiple occupation unit with two bedrooms on the ground floor and three on the first.

It also includes internal alterations, refurbishment works, and minor external alterations to the property in the established residential area.

It added: “The proposal seeks to improve the quality and functionality of the existing property, delivering well-designed shared accommodation whilst retaining the existing building envelope.”

Of the development, it added: “The proposed development reuses an existing dwelling in a sustainable location, provides high-quality shared accommodation, involves minimal external alteration, maintains acceptable amenity standards, has no adverse highway impact, [and] delivers biodiversity enhancements.”

It said the scheme would not see any extensions, external enlargements, or increase in footprint, retaining the existing built form and site layout.

It also said the proposal “does not adversely affect any existing green infrastructure” and “provides measurable biodiversity enhancements through bird and bat boxes”.

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