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Business

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

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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

Curiosity kitchen to close doors as owner takes a ‘heartfelt pause’

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PEMBROKESHIRE’S beloved Curiosity Kitchen is set to close at the end of March, as owner Beverley Newman makes the difficult decision to step back from the business.

In an emotional statement, Newman expressed gratitude to her loyal customers, many of whom have described her venture as a hidden gem.

“I’ve always said that my best days were those spent with my most positive, supportive customers—the people who made this journey worthwhile,” she wrote. “Time and time again, I’ve been told that there’s nothing like my place in Pembrokeshire, that it belongs somewhere like Cardiff or even London.”

However, despite the admiration for her work, she acknowledged that keeping the business going was no longer sustainable.

“To continue would mean treating this as a passion project rather than a viable business,” she explained. “With bills to pay and my own future to consider, I have to make the difficult but necessary decision to step back—for now.”

Newman, who has run Curiosity Kitchen with a focus on creative, high-quality bakes, reassured customers that this was not a farewell, but rather a “strategic pause.” She expressed a desire to travel and gain fresh inspiration before potentially returning with new ideas and a different venture in the future.

“This isn’t failure. It’s simply a detour,” she said.

The announcement has prompted an outpouring of support from customers saddened by the closure but eager to see what the future holds for Newman.

In response to messages from well-wishers, she hinted that her distinctive flavours could soon be available at another Pembrokeshire venue.

Curiosity Kitchen is expected to close by the end of March.

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Business

Karen Wood bids farewell to Dragon LNG after 15 years of community impact

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AFTER more than 15 years at Dragon LNG, Karen Wood, the company’s External Relations and Social Performance Manager, is leaving her role, marking the end of an era in the company’s extensive community engagement efforts. Her departure, effective today (Feb 28), concludes a journey that began in September 2009, during which she played a key role in fostering corporate social responsibility initiatives across Pembrokeshire.

Reflecting on her time at Dragon LNG, Karen highlighted the overwhelming support she has received from colleagues, educators, policymakers, and community leaders, describing it as “incredibly humbling.” She expressed gratitude for the collaborations and friendships built over the years and shared a special memory that encapsulated the impact of her work.

Emily’s story: A legacy of opportunity

School staff, governors, staff from Pembrokeshire County Council and Darwin Experience board members back in 2020.

One of Karen’s proudest achievements is the Dragon Darwin Experience, an initiative aimed at inspiring and educating young people in Pembrokeshire. Among the many success stories from the programme, she recalled Emily’s Story, a tale that continues to resonate within the community.

The Dragon LNG Darwin Centre Experience: Providing free field trips and hands-on activities to engage pupils

Emily was the first girl to take part in the Dragon Darwin Experience workshop in 2005, held at Pembrokeshire College under the leadership of then-principal Glyn Jones. Years later, in 2017, Karen commissioned Emily’s Story to support Dragon LNG’s application for the prestigious UBS UK Award for Education at the UK Business in the Community Responsible Business Awards. Competing against corporate giants such as British Land Rover, Greggs, Toyota UK, RBS, Hogan Lovells, and Amazon UK & Ireland, Dragon LNG made it to the final round, facing a grilling from an eight-person panel that included representatives from UBS, Goldman Sachs, Rothschild & Co, and Amazon UK.

Dragon LNG was working with 76 local schools when it won an award in 2017

On July 4, 2017, at the Royal Albert Hall, Dragon LNG achieved a milestone moment—winning the award, becoming the only Welsh company to do so that year. While Emily was unable to attend the ceremony due to volunteering overseas, her journey exemplified the long-lasting impact of the programme. The award recognised Dragon LNG as a leader in corporate responsibility, demonstrating how business can drive positive social change.

“Your organisation is a powerful example of the difference business can make to address some of society’s biggest issues,” read a congratulatory message from Business in the Community.

Karen also revealed that an update to Emily’s Story was commissioned last year to celebrate the 20th anniversary of the Dragon Darwin Experience, ensuring the legacy continues to inspire future generations.

Huge impact: Karen Wood has driven Dragon’s engagement with the community

Closing a chapter, looking ahead

As Karen bids farewell to Dragon LNG, she leaves behind a strong legacy of educational and community engagement initiatives that have touched countless lives. While this chapter in her career closes, she remains optimistic about the future and looks forward to seeing the ongoing positive impact of the programmes she helped establish.

“While this particular book is closing, I know the stories, lasting friendships, and connections we’ve built will endure far beyond my final day. I hope our paths will cross again, and I’ll be cheering you on as you continue to achieve great things,” Karen said in her farewell message.

Her departure signals a new phase for Dragon LNG and its community programmes, raising questions about what comes next for the company’s engagement initiatives. However, one thing remains clear—Karen’s contributions have left an indelible mark on Pembrokeshire, ensuring that the seeds of opportunity she helped plant will continue to grow for years to come.

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Business

Businesses urged to enter Wales Business Awards as deadline looms

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BUSINESSES across Pembrokeshire and Carmarthenshire are being encouraged by Chambers Wales South East, South West and Mid to submit their entries for the highly anticipated Wales Business Awards 2025 as the deadline approaches.

The Wales Business Awards celebrate the best of business in Wales and local firms now have just one week to go until the entry deadline (Friday 7 March).

The awards are free to enter for both Chamber members and non-members and entries can be submitted by completing an online application form.

Gus Williams, interim CEO of Chambers Wales South East, South West and Mid, said: “The Wales Business Awards annually showcase the incredible work and achievements of the Welsh business community and 2025 is set to be another fantastic year!

“The only thing stopping the possibility of your business winning is not entering. There are so many successful businesses in Carmarthenshire who could have the chance to walk away with one of our prestigious accolades and we strongly encourage them to enter before it’s too late.”

There are 12 revamped categories for businesses to enter this year, including: Apprenticeship Scheme of the Year; Customer Excellence Award; Digital Business Award; Emerging Exporter of the Year; Equity and Inclusion Award; Global Business of the Year; Green Business Award; Innovation Award; Manufacturer of the Year; Outstanding Workplace Culture Award; Professional Services Firm of the Year; and SME Exporter of the Year.

The Chamber will also present ‘Wales Business of the Year’ at the ceremony on 12 June at Mercure Cardiff Holland House, which sees broadcaster Andrea Byrne return as host.

Entries can be submitted at https://cw-seswm.com/events/wales-business-awards-2025/ on or before Friday 7 March.

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