Business
Business Rates Relief cut ‘spells disaster’ for Welsh hospitality sector

THE ANNOUNCEMENT was made last year, but this week the reality kicked in.
The Business Rates Relief has been cut in Wales has kicked in and the hoped-for u-turn has not materialised.
The substantial reduction in business rates relief for hospitality firms has stirred significant concern amongst business owners and industry representatives across Wales.
Effective from 1 April 2024, the relief has been cut from 75% to 40%, accompanied by a 5% rise in rates. This decision is part of a broader strategy to redistribute financial resources to support essential services, particularly the health service, amidst ongoing fiscal pressures.
Finance Minister Rebecca Evans has acknowledged the difficulty of these decisions, emphasising the government’s commitment to managing a tight budget in challenging times. However, the reduction in support has sparked fears of financial strain and potential closures within the hospitality sector.
Industry Response
The announcement has been met with dismay by industry leaders, who warn of the competitive disadvantage Welsh businesses will now face. David Chapman, Executive Director of UKHospitality Cymru, highlighted the stark contrast with England, where businesses continue to benefit from the 75% relief. “This disparity will undoubtedly place Welsh businesses at a competitive disadvantage, particularly small businesses that will see their counterparts across the border enjoying frozen rates,” Chapman said.
A typical pub or restaurant in Wales is now expected to pay £6,400 more than one in England, a disparity that could have severe implications for the viability of many establishments.
Budget Cuts and Tourism
The reduction in business rates relief is not the only financial challenge facing the Welsh hospitality and tourism sectors. The Welsh Government’s budget for 2024/25 also includes a £16m cut in funding for tourism, culture, and sport. Given the strategic importance of tourism to Wales’ economy and cultural identity, this decision has been met with criticism. The sector, already facing intense economic challenges, views the cut as a significant setback that could undermine long-term confidence and investment.
Political and Community Reaction
Stephen Crabb MP, pictured here with restaurant owner Dan Mills, has been vocal in his efforts to highlight the challenges facing the hospitality sector, especially in regions like Pembrokeshire that rely heavily on tourism. Crabb has been engaging with local business owners, bringing attention to the sector’s struggles at both the local and national levels. “The upcoming season should be a time of optimism, but the reality is far different due to these financial challenges,” Crabb stated, emphasising the need for greater support to ensure the sector’s competitiveness and sustainability.
The Welsh Conservatives have strongly criticised the Welsh Government’s decision, with Andrew RT Davies MS, the party’s leader, and Tom Giffard MS, Shadow Minister for Tourism, both calling for a reevaluation of the relief cut. They argue that the reduction could be catastrophic for businesses already contending with the post-pandemic economic landscape, urging the government to maintain competitive rates relief.
Calls for Reconsideration
Amid growing concerns, FOR Cardiff, representing businesses within the city, has issued an open letter to the Minister for Finance, urging the Welsh Government to reconsider its approach to business rates relief. The organisation highlights the critical role of high street businesses in the everyday economy and warns of the potential for widespread closures without adequate support. Carolyn Brownell, FOR Cardiff’s Executive Director, called for a more gradual approach to tapering relief, suggesting that some of the government’s capital funds could be redirected to provide targeted support where it’s most needed.
Looking Forward
As the hospitality sector braces for the impact of these financial changes, the debate continues over the best path forward. Industry leaders, political figures, and community representatives are calling for a balanced approach that supports businesses through these challenging times while addressing the fiscal needs of the country.
The coming months will be crucial in determining the long-term effects of these decisions on Wales’ hospitality sector and broader economy.
How many pubs and restaurants will survive?
Business
Huge slurry lagoon to be built in Pembrokeshire countryside

PLANS to build a new slurry lagoon at a 650-dairy herd Pembrokeshire farm have been given the go-ahead.
In an application to Pembrokeshire County Council, Richard Morris of Bowett Ltd sought permission for the construction of the lagoon, and associated works, at Quoits Hill Farm, Bentlass Road, Hundleton, near Pembroke.
A supporting statement through agent Cynllunio RW Planning Ltd stressed the applicant does not intend to increase livestock numbers on farm as a result of this 60 by 35 metre development.
“The Morris Family farm at Quoits Hill Farm and specialise in dairy farming. The farm is home to approximately 650 dairy cows plus followers. The herd is autumn calving with milk sold to Laprino. The home farm is grass based and extends to over 300 acres, with more off lying land utilised for growing winter forage.
“The family have invested significantly in recent years in on farm infrastructure to include a rotary milking parlour, silage clamps and covered feed yards.”
It added: “The proposed development seeks to increase the farms slurry storage capacity to above the five-month storage required by NVZ regulations. The existing slurry store and slurry handling facilities are not adequate to comply with the new regulations.”
It went on to say: “The proposed store will provide the farm with 6452 cubic meters of storage capacity (minus freeboard) which will equate to over 171 days storage. It is proposed to use the existing field slurry store as a lightly fouled water store to collect the parlour washings and reduce the size of the store required. Slurry will continue to be scrapped into the existing yard store and then pumped to the new store when required. This work will be monitored closely to reduce the risk of any leakage.”
It concluded: “The proposed development will enable slurry to be spread during the growing season rather than during more difficult weather conditions in the winter. This will be of benefit to farm efficiency and the wider environment.”
The application was conditionally approved.
Business
Post Office spent £600m to keep using flawed Horizon system

Roch postmaster among those still seeking compensation
THE POST OFFICE has spent more than £600 million of public money continuing to use the discredited Horizon IT system—despite accepting more than a decade ago that it needed replacing.
New documents reveal that then Prime Minister Tony Blair and senior Labour ministers were warned as far back as 1999 about serious flaws in the original £548 million deal with Fujitsu. A Treasury memo at the time flagged that the Post Office would not own the core computer code, leaving them locked into the supplier and vulnerable to spiralling costs. Officials warned Fujitsu could use the situation to “drive a costly settlement.”
Since then, the total spent on Horizon contracts has reached £2.5 billion, including £600 million spent since 2012 when the Post Office first admitted it needed to move on from the system. Replacement efforts have repeatedly failed, with a £40 million IBM project abandoned in 2016 and another attempt scrapped in 2022.

The latest replacement project—an internal system called New Branch IT (NBIT)—has run into delays and ballooning costs, with estimates now topping £1 billion. Despite past failings, the Post Office and Fujitsu are expected to remain in partnership until at least 2030.
The scandal surrounding Horizon continues to grow, following the wrongful prosecution of over 900 sub-postmasters. Although private prosecutions based on Horizon data were halted in 2015, campaigners say the damage done is still being felt by victims across the UK—including here in Pembrokeshire.
One of them is Tim Brentnall, who was just 22 when he and his parents bought the Roch Post Office. In 2010, he was prosecuted after a £22,500 shortfall appeared in the accounts—despite doing nothing wrong. Advised to plead guilty, he received an 18-month suspended sentence and 200 hours of community service. His conviction was quashed in 2021.
Earlier this year, Brentnall told the BBC he was “in disbelief” after being offered less than 17% of the compensation he had claimed. The offer came with a 50-page letter rejecting much of his legal and forensic case, and over 15,000 documents to sift through. He is now re-submitting the claim.
“There are people far older than me who should be enjoying their lives now,” he said. “Instead, they’re still fighting. People are dying without seeing justice. It’s not right.”
The Post Office says it is “fundamentally changing” as an organisation and has paid out more than £768 million to over 5,100 people affected by the Horizon scandal. However, many victims and campaigners say the compensation process remains slow, unfair, and deeply distressing.
Postal minister Gareth Thomas recently confirmed a further £276.9 million in government funding for the Post Office, including £136 million for future IT projects. He said the continued use of Horizon reflected “past underinvestment” and that postmasters needed better tools going forward.
A spokesperson for Tony Blair said the former PM took concerns over the Horizon contract seriously at the time and acted on independent advice. “It is now clear the Horizon product was seriously flawed. Mr Blair has deep sympathy for those affected.”
A separate 1999 memo was also sent to then-Chancellor Gordon Brown, but a spokesperson for Mr Brown said he would not have seen it and had no involvement in awarding the contract.
Despite public statements about reform, doubts remain over whether NBIT will ever be delivered—and whether true justice will ever be achieved for those whose lives were torn apart by the Horizon scandal.
Business
Wales and Japan strengthen partnership at Tokyo investor showcase

WALES’ longstanding relationship with Japan was reaffirmed and deepened this week during a high-profile investor showcase in Tokyo, part of the Welsh Government’s Year of Wales in Japan 2025 celebrations.
The Wales Investor Showcase, hosted by Cabinet Secretary for Economy, Energy and Planning Rebecca Evans, brought together leading Japanese entrepreneurs and companies across a range of sectors, with a focus on fostering long-term trade links and collaborative ventures.
The event centred on strategic areas of mutual interest, including renewable energy, digital innovation, and advanced manufacturing. It marked a significant moment in the decades-old partnership between the two nations, which began with the first wave of Japanese investment into Wales in the 1970s. Today, over 70 Japanese companies operate in Wales.
Cabinet Secretary Rebecca Evans said: “Deep-rooted connections between Wales and Japan have flourished for generations, with trade links thriving over the last 50 years.
“With the world’s economies searching for stability and growth, now is the perfect time to strengthen our ties with Japan. The optimism surrounding our shared ambitions has been truly inspiring.
“The showcase was about forging new connections, building on existing relationships, and exploring opportunities for sustainable, mutual growth that will benefit both nations for the next 50 years and beyond.
“It also highlighted the skills, creativity and world-class innovation that define modern Wales.”
Kazushi Ambe, Senior Adviser of Sony Group, echoed the importance of the relationship:
“The partnership between Wales and Japan, built over more than half a century, reflects deep mutual respect, shared values, and a strong sense of connection.
“In a time of constant change, it is these enduring qualities that continue to unite us. This showcase was a valuable opportunity to strengthen that bond and explore new avenues for collaboration.
“As both sides embrace new challenges and pursue progress, I hope this partnership will continue to evolve and thrive.”
As part of her visit to Japan, the Cabinet Secretary will also host a Wales Day event at the Osaka Expo, promoting Welsh innovation, culture, and trade potential on the global stage.
In addition, the Welsh Government has announced two upcoming trade missions to Japan later this year, aimed at helping Welsh businesses explore export opportunities in one of Asia’s most significant markets.
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