Business

VAT cut critical for survival by three-quarters of small hospitality firms

Published

2 years ago

February 15, 2024

IN A STARK warning to the Treasury, a sweeping survey conducted by the National Caterers Association (NCASS) has unveiled that a staggering 75% of independent hospitality businesses view a reduction in VAT as essential for their survival amidst the severe inflationary pressures besieging the sector.

In Pembrokeshire we have already seen the closure of some well known local businesses including The Welsh Bakery, Madison’s Restaurant and many more.

The survey, which gathered insights from both members and the broader independent hospitality community, paints a grim picture of the challenges faced by small cafés, restaurants, bars, hotels, and street food vendors. With a clarion call for immediate action, the results underscore the urgent need for measures to protect the livelihoods of thousands operating within this critical industry.

Discontent is rife among the respondents, with 78% expressing dissatisfaction with the level of support provided by the government. A further 80% reported that the Autumn Budget’s measures failed to offer any relief, highlighting a disconnect between policy and the practical needs of these businesses.

Alarmingly, 37% of those surveyed indicated that their operations might not be sustainable over the next year, citing a dramatic 30% decrease in gross profit. The survey also revealed unanimous concern over rising costs, including staff wages, energy bills, and rent, forcing businesses to adopt drastic measures such as reducing staff hours, increasing prices, and accruing debt to stay afloat.

One member’s testimony encapsulates the despair within the sector, questioning the viability of continuing their business under the current conditions, especially in light of what they perceive as governmental negligence.

The crisis not only threatens the existing fabric of the UK’s independent hospitality scene but also stifles the growth of emerging businesses, many of which have been instrumental in revitalizing high streets across the nation. Despite the government’s promotion of hospitality-led regeneration initiatives, the current economic environment jeopardizes the emergence of future success stories akin to established brands like Meat Liquor, Pizza Pilgrims, and Bao.

The situation is dire, with an estimated 10 businesses closing daily within the hospitality sector. The NCASS reports a doubling in the closure rate among its members in 2023, with new startups hitting a standstill.

Amid calls for intervention, the plight of these small and micro businesses underscores a broader issue: the need for a conducive operating environment that nurtures community, supports families, and fosters economic growth. The increase in VAT and corporation tax, coupled with the cost-of-living crisis, has left many businesses operating on razor-thin margins, if any.

Highlighting the perverse incentive created by the current VAT threshold, which has not been reviewed since 2016, the NCASS argues for a recalibration to account for inflation and ease the burden on businesses teetering on the brink of viability.

The plea for a fairer VAT rate is a testament to the sector’s resilience and innovation, especially in the wake of the COVID-19 pandemic. With the treasury benefiting from increased tax receipts due to inflationary pressures, there’s a compelling case for leveraging this fiscal space to support the independent hospitality sector, thereby safeguarding high streets and the very essence of local communities.

As the industry stands at a crossroads, the consensus is clear: a reduction in VAT could be the lifeline needed for these businesses to weather the storm and contribute to the UK’s economic and social fabric. The government’s response, or lack thereof, could very well determine the fate of countless independent hospitality ventures teetering on the edge of survival.

Business

First wind turbine components arrive as LNG project moves ahead

Published

6 hours ago

December 4, 2025

Tom Sinclair

THE FIRST ship carrying major components for Dragon LNG’s new onshore wind turbines docked at Pembroke Port last week, marking the start of physical deliveries for the multi-million-pound renewable energy project.

The Maltese-registered general cargo vessel Peak Bergen berthed at Pembroke Dock on Wednesday 26^th November, bringing tower sections and other heavy components for the three Enercon turbines that will eventually stand on land adjacent to the existing gas terminal at Waterston.

A second vessel, the Irish-flagged Wilson Flex IV, has arrived in Pembroke Port today (Thursday) carrying the giant rotor blades.

The deliveries follow a successful trial convoy on 25 November, when police-escorted low-loader trailers carried dummy loads along the planned route from the port through Pembroke, past Waterloo roundabout and up the A477 to the Dragon LNG site.

Dragon LNG’s Community and Social Performance Officer, Lynette Round, confirmed the latest movements in emails to the Herald.

“The Peak Bergen arrived last week with the first components,” she said. “We are expecting another delivery tomorrow (Thursday) onboard the Wilson Flex IV. This will be blades and is currently showing an ETA of approximately 03:30.”

The £14.3 million project, approved by Welsh Ministers last year, will see three turbines with a combined capacity of up to 13.5 MW erected on company-owned land next to the LNG terminal. Once operational – expected in late 2026 – they will generate enough electricity to power the entire site, significantly reducing its carbon footprint.

The Weather conditions were favourable for the arrival of the Wilson Flex IV, which was tracking south of the Smalls at midnight.

The abnormal-load convoys carrying the components from the port to Waterston are expected to begin early next year, subject to final police and highway approvals.

A community benefit fund linked to the project will provide for residents in nearby Waterston, Llanstadwell and Neyland.

Further updates will be issued by Dragon LNG as the Port of Milford Haven as the delivery programme continues.

Photo: Martin Cavaney

Business

Cardiff Airport announces special Air France flights for Six Nations

Published

10 hours ago

December 4, 2025

Tom Sinclair

Direct services to Paris-Charles de Gaulle launched to cater for Welsh supporters, French fans and couples planning a Valentine’s getaway

CARDIFF AIRPORT and Air France have unveiled a series of special direct flights between Cardiff (CWL) and Paris-Charles de Gaulle (CDG) scheduled for February 2026.

Timed to coincide with two major dates — the Wales v France Six Nations clash on Saturday 15 February and Valentine’s weekend — the flights are designed to offer supporters and holidaymakers an easy link between the two capitals.

For travelling French rugby fans, the services provide a straightforward route into Wales ahead of match day at the Principality Stadium, when Cardiff will once again be transformed by the colour, noise and passion that accompanies one of the tournament’s most eagerly awaited fixtures.

For Welsh passengers, the additional flights offer a seamless escape to Paris for Valentine’s Day, as well as opportunities for short breaks and onward travel via Air France’s wider global network.

Cardiff Airport CEO Jon Bridge said: “We’re thrilled to offer direct flights to such a vibrant and exciting city for Valentine’s weekend. Cardiff Airport is expanding its reach and giving customers fantastic travel options. We’ve listened to passenger demand and are delighted to make this opportunity possible. There is more to come from Cardiff.”

Tickets are already on sale via the Air France website and through travel agents.

Special flight schedule

Paris (CDG) → Cardiff (CWL):

13 February 2026: AF4148 departs 17:00 (arrives 17:30)
14 February 2026: AF4148 departs 14:00 (arrives 14:30)
15 February 2026: AF4148 departs 08:00 (arrives 08:30)
15 February 2026: AF4150 departs 19:40 (arrives 20:10)
16 February 2026: AF4148 departs 08:00 (arrives 08:30)
16 February 2026: AF4150 departs 16:30 (arrives 17:00)

Cardiff (CWL) → Paris (CDG):

13 February 2026: AF4149 departs 18:20 (arrives 20:50)
14 February 2026: AF4149 departs 15:20 (arrives 17:50)
15 February 2026: AF4149 departs 09:20 (arrives 11:50)
15 February 2026: AF4151 departs 21:00 (arrives 23:30)
16 February 2026: AF4149 departs 09:20 (arrives 11:50)
16 February 2026: AF4151 departs 17:50 (arrives 20:20)

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

Published

18 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.