Growth expectations among Welsh firms have dropped to their lowest level for 15 months, with only six per cent planning to recruit this summer

ALMOST nine in ten people in Wales believe the Government should do more to support small businesses, according to new research published as confidence among Welsh firms continues to weaken.

The survey found that 87% of Welsh adults wanted stronger government backing for small businesses, up from 84% when the same question was asked two years ago.

Separate tracking by Novuna Business Finance suggests the proportion of Welsh small businesses expecting to grow has fallen from 28% in the spring to 20% during the summer quarter.

That is the lowest level recorded in Wales for 15 months and compares with 32% at the same point last year.

The figures also indicate that many business owners are concentrating on protecting their existing operations rather than expanding.

Around 34% said managing fixed costs was their main priority for securing future growth, while only 5% were preparing to enter new markets and just 6% planned to recruit additional staff.

Rates, energy and tax pressures

Reducing the costs faced by small firms emerged as the strongest theme among Welsh respondents.

Almost a third, 32%, called for lower business rates, although responsibility for the business rates system in Wales lies with the Welsh Government rather than Westminster.

A further 22% wanted corporation tax reduced for smaller companies, while 20% called for a reduction in National Insurance.

Employers have faced increased National Insurance costs, which Novuna said had previously been identified by almost half of small-business owners as a threat to their finances and growth plans.

Energy bills were another major concern. Some 23% of Welsh respondents supported the introduction of a cap on energy costs for small businesses, similar to protections available to domestic consumers.

The condition of town centres and shopping areas also featured prominently, with 27% calling for major government investment to regenerate high streets.

Brexit and overseas trade

Businesses’ ability to trade internationally was another area where respondents wanted changes.

Around 26% said the UK Government should reduce the paperwork and administrative barriers faced by small businesses trading overseas.

A further 23% wanted the UK to reverse Brexit and rejoin the European Union.

Looking towards longer-term workforce development, 15% called for greater investment in apprenticeships and a wider rollout of apprenticeship schemes.

Another 16% wanted additional training and development programmes for small-business owners and their employees.

Jo Morris, Head of Insight at Novuna Business Finance, said small firms remained central to local communities and the wider economy.

She said: “People deal with small businesses most days, a strong small-business sector helps communities work well, and many consumers themselves either run or work for a small business.

“Our Business Barometer data reveals a low point for small-business growth forecasts this month, but, set against these challenges, 62% of Welsh small businesses are still committed to exploring new ways to secure future growth.”

She added that reducing costs and taxation could give businesses greater confidence to invest in equipment, improve productivity and create jobs.

The small-business research was conducted online by YouGov for Novuna Business Finance among 1,000 UK small businesses between July 5 and July 8, 2026.

The consumer polling was carried out on July 17 among a nationally representative sample of 2,000 members of the public. The number of Welsh respondents included in the consumer survey was not stated in the news release.

PLANS for an outdoor sauna by Tenby’s North Beach have been submitted to Pembrokeshire’s national park.

In an application to Pembrokeshire Coast National Park, Tenby-based David Jones, seeks permission for the siting of a mobile sauna unit on a raised concrete hard-standing area above the breakwater wall and slipway at the far north end corner of North Beach, Tenby.

It would be situated below the Park Hotel, North Cliff, the site in private ownership as part of the Park Hotel estate.

A supporting statement accompanying the application says the site has most recently been used as the base for a paddleboard tour and rental business, and has also been utilised to store watercraft and recreational beach equipment.

Of the scheme itself, it says: “We aim to provide a close to nature sauna experience and in so doing make sauna culture’s physical, mental, and social health benefits accessible to the local community and its visiting guests.

“We aim to operate a year-round service that offers an immersive and nuanced experience that only nature and the changing seasons can provide. We aim to provide a sauna service set within a natural setting with direct access for sea bathing as an integral part of the sauna experience. We aim to provide an experience with a low environmental impact and high physical, mental and social gains.”

It adds: “The sauna and changing room will be separate mobile units. This provides practical advantages for siting and maintenance but also as a design strategy to provide a sense of impermanence, transience and movement sympathetic to its natural setting and unique location.

“The sauna unit will feature a wood fired sauna stove, a large glazed picture window and low level LED internal mood lighting reinforcing design principles based on creating low environmental impact and an atmosphere that reaches for a sense of the elemental.

“Externally both units will feature black metal profile roofing, black timber cladding and double glazed windows. A glazed picture window to the east elevation of the sauna unit will take in the impressive town and sea vista.”

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

Recently, a previously temporary grant of an outdoor sauna at Saundersfoot’s harbour was refused a permanent location by Park planners.

Back in June 2024, a temporary two-year permission for a mobile wood-fired sauna at overlooking the sea at Saundersfoot harbour was granted by Pembrokeshire Coast National Park’s development management committee.

Since then, a further application by Kerry Evans of Hwyl Outdoor Sauna to make the siting permanent was submitted to national park planners, which was refused following an officer recommendation at the July committee meeting.

While planners expressed their regret at the refusal of that scheme, one of the issues based on location, they hoped a compromise may be reached with another location in the harbour area.

Kerry Evans has previously stated she is considering appealing the decision on that scheme, which had gained huge local support as well as an online appeal calling for the refusal to be overturned, to Planning and Environment Decisions Wales (PEDW).

PLANS to build new homes on land behind a Pembrokeshire village’s fuel station have been submitted, but no affordable housing contribution is being offered.

In an application submitted to Pembrokeshire Coast National Park, Cardigan-based CAD Properties, through agent Harries Planning Design Management, seeks permission for a new residential development of four homes and an access road on land to the rear of Dinas Cross Service Station, Dinas Cross.

A supporting statement accompanying the application says: “The application site itself comprises a greenfield parcel of Grade 5 land, not considered best and most versatile. The site slopes gently to the north and is bound by hedgebanks and trees on all sides. The land is currently used for grazing. There are no known environmental or historical designations on site.

“This application seeks full approval for four dormer bungalows. The proposed dwellings will comprise four two-bedroom units. The proposal seeks to create a new access off Spring Hill, set back off the highway to allow for visibility. A simple linear layout is proposed to the northern portion of the land, with the remainder retained for agriculture, a communal area and ecological enhancement. The dwellings with front the access road, with front off-street parking and rear private amenity space.”

It says that, while the density of the development is lower than policy, there are “significant constraints on site,” including overhead electricity wires which require a buffer zone, a gas main and root protection areas for existing trees.

It also says no affordable housing contribution is offered, the application submitted alongside a viability report “which highlights that due to constraints and cost of development, delivering affordable housing within this site is unviable”.

It concludes: “This proposal is considered to offer an acceptable form of residential development, making best use of windfall land within the Centre boundary of Dinas Cross. The siting of the access is deemed acceptable for four dwellings and allows the land to be built upon, securing required open-market housing within PCNPA’s jurisdiction.”

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