Business
Welsh output nears stabilisation as contraction in new business slows
THE HEADLINE NatWest Wales PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – rose from 48.0 in December to 49.9 in January, to signal broadly unchanged output levels at Welsh businesses at the start of 2024.
The broad stabilisation in activity followed four successive monthly declines. Nonetheless, of the 12 monitored UK areas, only Wales and the North East posted a sub-50.0 reading. Where a decrease in activity was noted, Welsh companies linked this to further subdued demand conditions and a downturn in new orders.
Welsh private sector firms recorded an eighth successive monthly decline in new orders during January. Anecdotal evidence suggested the fall was due to subdued client demand and greater competition. That said, the rate of decline eased for the third month running to the slowest since last September.
The marginal drop in new orders contrasted with the UK trend which signalled a modest expansion.
Firms in Wales indicated strongly upbeat expectations regarding the outlook for output over the coming year in January. Greater optimism was attributed to planned investment in capacity expansion, new product launches and hopes of a pick-up in customer demand.
Although higher than the series average, the level of positive sentiment dipped from that seen in December and was lower than the UK trend.
Workforce numbers at Welsh firms dropped for the sixth month running in January, with companies cutting staffing levels at a steep pace. Although the slowest for three months, the rate of job shedding was sharper than the series average and contrasted with the UK trend. Moreover, the pace of decline was the quickest of the 12 monitored UK areas.
Lower employment was linked to the non-replacement of voluntary leavers and efforts to cut costs.
Welsh firms recorded a further drop in backlogs of work during January, thereby extending the current sequence of decline seen since May 2022. Panellists often noted that subdued demand conditions led to the sustained decrease in incomplete business.
Although the pace of contraction slowed to the weakest since April 2023, it was sharper than the UK average.
January data signalled a continued increase in input prices faced by Welsh firms. Manufacturers and service providers alike recorded an uptick in cost burdens, as the overall rate of inflation quickened to the fastest since May 2023. Higher input prices were linked to greater wage bills, alongside increased supplier and transportation costs.
Despite accelerating, the pace of increase was slower than both the UK and historic series averages.
Welsh businesses registered a further solid rise in selling prices at the start of the year. The pace of inflation was little changed from that seen in December and slightly quicker than the long-run series average. The uptick in output prices reportedly stemmed from the pass-through of greater costs to customers.
The rate of increase was among the slowest of the 12 monitored UK areas, however, and faster than only Northern Ireland, the North West and Yorkshire & Humber.
Jessica Shipman, Chair, NatWest Cymru Regional Board, commented: “The start of 2024 signalled more positive trends emerging from the Welsh private sector, as activity was broadly stable on the month and the contraction in new business slowed to only a marginal rate. Firms also remained strongly upbeat in their expectations for the year ahead, and future expansion in output.
“Nonetheless, businesses cut workforce numbers steeply as pressure on capacity dwindled further. Job shedding in Wales was the fastest of the 12 monitored UK areas, with firms looking to rein in costs and have a tighter control on spending.
“Although cost burdens rose at a marked and accelerated pace, the rate of inflation was below both the historic series and UK averages. Moreover, in a bid to secure new sales, companies raised selling prices at only a solid rate that was among the weakest across the UK and much slower than that seen over 2023 as a whole.”
Business
Independent brewers join call for business rates relief as pub closures feared
INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.
The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.
The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.
Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.
New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.
The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.
Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.
“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.
“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”
Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.

Business
Cosheston Garden Centre expansion approved by planners
PLANS to upgrade a garden centre on the main road to Pembroke Dock have been given the go-ahead.
In an application to Pembrokeshire County Council, submitted through agent Hayston Developments & Planning Ltd, Mr and Mrs Wainwright sought permission for upgrade of a garden centre with a relocated garden centre sales area, additional parking and the creation of ornamental pond and wildlife enhancement area (partly in retrospect) at Cosheston Garden Centre, Slade Cross, Cosheston.
The application was a resubmission of a previously refused scheme, with the retrospective aspects of the works starting in late 2023.
The site has a long planning history, and started life as a market garden and turkey farm in the 1980s, and then a number of applications for new development.
A supporting statement says the previously-refused application included setting aside a significant part of the proposed new building for general retail sales as a linked farm shop and local food store/deli in addition to a coffee bar.
It was refused on the grounds of “the proposal was deemed to be contrary to retail policies and the likely impact of that use on the vitality and viability of nearby centres,” the statement said, adding: “Secondly, in noting that vehicular access was off the A 477 (T) the Welsh Government raised an objection on the grounds that insufficient transport information had been submitted in respect of traffic generation and highway safety.”
It said the new scheme seeks to address those issues; the development largely the same with the proposed new garden centre building now only proposed to accommodate a relocated garden centre display sales area rather than a new retail sales area with other goods, but retaining a small ancillary coffee bar area.
“Additional information, in the form of an independent and comprehensive Transport Statement, has now been submitted to address the objection raised by the Welsh Government in respect of highway safety,” the statement said.
It conceded: “It is acknowledged that both the creation of the ornamental pond and ‘overspill’ parking area do not have the benefit of planning permission and therefore these aspects of the application are ‘in retrospect’ and seeks their retention.”
It finished: “Essentially, this proposal seeks to upgrade existing facilities and offer to the general public. It includes the ‘relocation’ of a previously existing retail display area which had been ‘lost’ to the ornamental pond/amenity area and to provide this use within the proposed new building and moves away from the previously proposed ‘farm shop’ idea which we thought had merit.
“This revised proposal therefore involves an ‘upgrading’ rather than an ‘expansion’ of the existing garden centre use.”
An officer report recommending approval said that, while the scheme would still be in the countryside rather than within a settlement boundary, the range of goods sold would be “typical of the type of goods sold in a garden centre and which could be sold elsewhere within the garden centre itself,” adding: “Unlike the recent planning application refused permission it is not intended to sell delicatessen goods, dried food, fruit and vegetables, pet products and gifts.”
It added that a transport statement provided had been reviewed by the Welsh Government, which did not object on highway grounds subject to conditions on any decision notice relating to visibility splays and parking facilities.
The application was conditionally approved.
Business
Tenby Poundland site could become retro gaming lounge
TENBY’S former Poundland and Royal Playhouse cinema could become a retro computer gaming lounge, plans submitted to the national park hope.
Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby.
Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.
The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.
In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former Gatehouse (Playhouse) Cinema, White Lion Street, most recently used as a Poundland store.
The signage plans form part of a wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front facade, a supporting statement through agent Asbri Planning Ltd says.
“The subject site is located within the settlement of Tenby along White Lion St. The site was formerly the Gatehouse Cinema and currently operates as a Poundland discount store, which closed on October 18.”
It adds: “This application forms part of a wider scheme for the change of use to the former Gatehouse Cinema. Advertisement consent is sought for a non-illuminated aluminium composite folded panel that will be bolted onto the front façade of the proposed building, in replacement of the existing signage (Poundland).”
It stresses: “It is considered that the proposed advertisement will not have a detrimental impact on the quality of the environment, along with being within a proportionate scale of the building. It is considered that the proposed signage will reflect site function.
“Furthermore, due to the sympathetic scale and design of the sign itself, it is considered that the proposal will not result in any adverse visual amenity impacts.
“The proposal is reduced in sized compared to the existing Poundland advertisement. The sign will not be illuminated. Given the above it is considered that such proportionate signate in association with the proposed retro gaming lounge is acceptable and does not adversely affect visual amenity.”
An application for a retro gaming lounge by MB Games Ltd was recently given the go-ahead in Swansea.
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