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Business

Economy secretary names boosting productivity and attracting investment as priorities

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WALES’ new economy secretary set out his priorities against the backdrop of a significant rise in economic inactivity and a fall in employment compared to the rest of the UK.

Jeremy Miles outlined his aim to make Wales the best place to start, invest in and grow a business by productivity, attracting investment and redesigning skills support.

In a statement to the Senedd about his economic vision on April 23, Mr Miles said increasing productivity and economic dynamism will be his number one priority.

He told the chamber his second priority is to attract and encourage business investment, both in established businesses based in Wales and from new investors.

The economy secretary said his third priority is to redesign employability and skills support, ensuring that economic priorities, apprenticeships and vocational education are all aligned.

However, opposition MSs warned that Wales’ economy is underperforming and urged the Welsh Government to set firm targets to measure success.

Mr Miles, who is also responsible for energy, cautioned that ongoing financial constraints as well as political and economic uncertainty at a UK level make the aims more challenging.

He said: “The legacy of EU withdrawal, the pandemic and ongoing budgetary constraints have weakened the economy.

“The slowdown in UK productivity has impacted output, wages and household incomes, and these inequalities were already more acute in Wales before this time.”

The former education minister, who retains responsibility for the Welsh language, criticised the “cack-handed’ approach of the prime minister to so-called sick note culture.

Mr Miles described the UK Government crackdown on the number of people signed off from work as a brutal way of approaching a very complex challenge.

Samuel Kurtz, the Conservatives’ new shadow economy secretary, raised concerns about worrying trends in economic inactivity and employment

He told the chamber that statistics show Wales’ unemployment rate was 60% higher than the UK average in the three months to February.

The Tory raised alarm about a “staggering” rate of economic inactivity at 26.2%, which he said is almost 27% higher than the UK average and rising three times as fast.

Mr Kurtz, who represents Carmarthen West and South Pembrokeshire, called on the economy secretary to introduce job-creation targets.

He said it should be a sense of shame for the Welsh Government that Welsh workers have long taken home less money than their counterparts anywhere else in the UK.

Luke Fletcher, for Plaid Cymru, said sectors across the economy have been calling out for a comprehensive and meaningful industrial strategy.

The South Wales West MS described the economy secretary’s statement as “essentially a list of economic goods the government would like to see in Wales”.

Mr Fletcher warned: “But there’s no substantive plan on how those goods will be delivered, no road map, no waymarkers and no precise sense of the final destination.”

The shadow economy secretary raised concerns about skills shortages in the green sector, calling for closer collaboration with further education providers.

He said: “It’s currently a case of them putting their finger in the air, seeing which way the wind blows, and hoping for the best. That doesn’t fill me with much hope.”

Mr Miles told MSs that potential job losses at Tata remain the most high-profile concern, vowing that the Welsh Government will do all it can to protect jobs and the steel industry.

The economy secretary said a general election offers the real possibility of a better and fairer economic policy from a new UK Government.

Mr Kurtz called for the Welsh Government to confirm if it has made any financial support available to the £100m Port Talbot transition board set up by UK ministers.

Meanwhile, Mr Fletcher urged the economy secretary to look at using the planning system to protect the future of the blast furnaces.

Mr Miles stressed that the Welsh Government has supported Tata through capital investment and skills support for many years.

He said: “We’ve been pressing for 14 years for a UK Government to take seriously the future of steel and to plan for a transition to greener production.”

 

Business

Bid to convert office space into chocolate factory, salon and laundrette

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A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners

In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.

A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.

For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”

It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.

The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.

“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.

“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.

“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”

The application will be considered by county planners at a later date.

 

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Business

First Minister criticised after ‘Netflix’ comment on struggling high streets

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Government announces 15% support package but campaigners say costs still crushing hospitality

PUBS, cafés and restaurants across Wales will receive extra business rates relief — but ministers are facing criticism after comments suggesting people staying home watching Netflix are partly to blame for struggling high streets.

The Welsh Government has announced a 15% business rates discount for around 4,400 hospitality businesses in 2026-27, backed by up to £8 million in funding.

Announcing the package, Welsh Government Finance Secretary Mark Drakeford said: “Pubs, restaurants, cafés, bars, and live music venues are at the heart of communities across Wales. We know they are facing real pressures, from rising costs to changing consumer habits.

“This additional support will help around 4,400 businesses as they adapt to these challenges.”

The announcement came hours after Eluned Morgan suggested in Senedd discussions that changing lifestyles — including more time spent at home on streaming services — were contributing to falling footfall in town centres.

The remarks prompted political backlash.

Leader of the Welsh Liberal Democrats, Jane Dodds, said: “People are not willingly choosing Netflix over the high street. They are being forced indoors because prices keep rising and wages are not.

“Blaming people for staying at home is an insult to business owners who are working longer hours just to survive.”

Industry groups say the problem runs deeper than consumer behaviour.

The Campaign for Real Ale (CAMRA) welcomed the discount but warned it would not prevent closures.

Chris Charters, CAMRA Wales director, said: “15% off for a year is only the start. It won’t fix the unfair business rates system our pubs are being crushed by.

“Welsh publicans need a permanent solution, or doors will continue to close.”

Across Pembrokeshire, traders have repeatedly told The Herald that rising energy bills, wage pressures and rates — rather than a lack of willingness to go out — are keeping customers away.

Several town centres have seen growing numbers of empty units over the past year, with independent shops and hospitality venues reporting reduced footfall outside the main tourist season.

While ministers say the relief balances support with tight public finances, business groups are calling for wider and longer-term reform.

Further debate on rates changes is expected later this year.

 

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Business

Pub rate relief welcomed but closures still feared

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CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills

A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.

The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.

However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.

Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.

“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.

“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”

He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”

Mounting pressure on locals

Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.

But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.

For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.

Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.

In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.

Community role

Campaigners stress that the issue goes beyond beer sales.

Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.

In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.

CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.

The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.

Long-term reform call

CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.

Without change, it warns, the number of closures is likely to accelerate.

Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”

For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.

 

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