Business

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

Published

1 year 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

Welsh businesses see AI as key driver of local growth

Published

9 hours ago

July 8, 2025

Tom Sinclair

Majority report increased productivity and profits from adopting new technologies

A MAJORITY of Welsh businesses believe that embracing artificial intelligence (AI) will play a major role in driving local economic growth, according to new figures from Lloyds Bank.

More than three in five firms (63%) say that greater AI adoption will be a key contributor to local economic performance in the years ahead.

The data, published in Lloyds’ long-running Business Barometer, shows that 61% of companies in Wales are already using AI tools—and the impact has been largely positive. Of those using the technology, 81% say it has boosted productivity, while 80% report increased profitability.

Companies are primarily using AI to improve efficiency (71%) and to analyse data for better decision-making (36%).

Looking ahead, nearly a quarter (24%) of Welsh businesses plan to increase their AI investment in the next 12 months. More than one in five (22%) also expect to create new roles focused specifically on AI development and implementation.

When asked about their motivations for future investment, 39% of firms said they hoped AI would help expand their customer base, while 36% cited the potential for further productivity gains.

However, businesses also highlighted the need for better understanding of the technology’s benefits (41%) and growing competitive pressure (18%) as factors influencing their investment decisions.

The Lloyds Business Barometer surveys 1,200 businesses each month and has been tracking economic sentiment since 2002.

Samantha Noble, area director for Wales at Lloyds Bank, said: “Welsh businesses identify AI as an avenue for local growth, which perhaps reflects their own success with it – the overwhelming majority of firms already using the technology have seen higher productivity and profitability.

“Sharing knowledge and experience will be critical to helping more firms start applying it, and ultimately ensuring the full potential of the technology is realised.”

Business

Pembrokeshire glamping firm reaches new green heights

Published

17 hours ago

July 7, 2025

Staff Writer

Damaged airbeds transformed into washbags and wallets through eco-partnership

AN AWARD-WINNING glamping company based in Pembrokeshire is taking bold steps to become more sustainable—thanks to support from Business Wales.

Nights Under Canvas, a family-run business specialising in luxury tent hire for weddings, festivals, corporate events and staycations, has introduced a range of eco-friendly initiatives to reduce its carbon footprint and environmental impact.

The company signed up to Business Wales’ Green Growth Pledge, a Welsh Government-backed scheme that helps businesses adopt more sustainable practices. With guidance from Business Wales Decarbonisation Adviser Sarah Gore, the company has implemented greener transport methods, improved waste management, and prioritised local sourcing.

One of its latest sustainability initiatives involves repurposing damaged airbeds into unique merchandise. The project sees Nights Under Canvas partner with Ecoast, a Saundersfoot-based retailer of recycled goods, and British upcycling brand Recycling Rachel. The result is a new range of washbags, wallets, purses and bumbags—made from salvaged materials and sold in-store.

Owner Steven Bradley said: “I’ve always had a deep appreciation for the environment, so improving our sustainability efforts was a key priority. Sarah’s support has been invaluable—we’re thrilled to be reducing waste and giving old materials a new life for our customers.”

Business Wales also helped Steven enhance the company’s online presence, offering digital support and training in website design, SEO, and social media strategy to help the business reach new audiences.

Sarah Gore praised the business’ efforts: “Steven’s passion for sustainability has been evident from day one. He’s constantly looking for new ways to reduce environmental impact, and Nights Under Canvas is a shining example of green growth in action.”

Business Wales is funded by the Welsh Government. For free support and advice, visit www.businesswales.gov.wales or call 03000 6 03000. Rydym yn croesawu galwadau’n Gymraeg – we welcome calls in Welsh.

Business

Two Pembrokeshire beaches named among best in Wales

Published

21 hours ago

July 7, 2025

Tom Sinclair

Whitesands and Saundersfoot praised in The Times Best Beaches Guide 2025

TWO Pembrokeshire beaches have been named among the very best in the UK, with The Times praising their natural beauty, tourist appeal and unique history in its much-anticipated Best Beaches Guide 2025.

The guide, now in its 17th year, saw travel experts cover over 5,800 miles of coastline and assess more than 750 beaches across the UK to find the nation’s top coastal spots. Eight Welsh beaches made the final cut — with Whitesands and Saundersfoot flying the flag for Pembrokeshire.

Whitesands: Steeped in legend

Whitesands, near St Davids, was described as a “timeless, spiritual location” with fine golden sand, great surf, and sweeping views of Ramsey Island. The Times noted the beach’s historical significance, claiming that this may have been the very place where Saint Patrick departed for Ireland in AD432 to begin his missionary work.

A hotspot for surfers, families, and walkers alike, Whitesands offers both natural beauty and strong amenities. With a nearby café, seasonal lifeguards, and walking trails linking to the Pembrokeshire Coast Path, it remains one of the region’s most treasured coastal gems.

Saundersfoot: A harbour village favourite

Also featured was Saundersfoot, a bustling harbour village popular with tourists year-round. The Times praised its “seaside charm and easy-going atmosphere,” as well as its accessibility for families, wide sandy beach, and thriving food scene.

Boat trips, dolphin-spotting excursions, and fresh seafood on the seafront were all noted as standout attractions — while the proximity to Tenby and the village’s ongoing regeneration projects helped cement its place on the list.

Celebrating Welsh coastal excellence
The Times guide was topped overall by Portstewart Strand in Northern Ireland, but Wales had a strong showing with eight beaches recognised, including:

Shell Island, Gwynedd (regional winner)
Three Cliffs Bay, Swansea
Dunraven Bay, Vale of Glamorgan
Mwnt, Ceredigion
Aberdaron, Gwynedd
Llanddwyn, Anglesey

Pembrokeshire’s inclusion reflects the county’s enduring reputation as one of the UK’s top holiday destinations, particularly for lovers of the sea, sand, and rugged coastline.

A boost for tourism
Tourism operators in Pembrokeshire have welcomed the news. One local business owner told The Herald: “We know how special these places are, but national recognition like this really helps encourage visitors to explore more of what Pembrokeshire has to offer.”

With summer well underway, the timing of the list provides a timely boost to local tourism — and a reminder to residents and visitors alike of the natural treasures right on their doorstep.