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Welsh Government rejects Council’s tourism tax plea

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THE WELSH GOVERNMENT has rejected a request from Pembrokeshire County Council to reconsider its 182-night rule on holiday letting.

In a letter to the local authority from Wales’s Finance Secretary, Mark Drakeford, the Welsh Government said it would not reconsider its approach until it had two years’ data on its effects.

The Labour government introduced the 182-night rule to target property owners who casually rent properties and pay neither the increased Council Tax premium on second homes nor Small Business Rates. By encouraging owners to release properties onto the for-sale market, the government wants to increase the availability of homes in Wales’s holiday hotspots. It’s a blunt tool, and there have been predictable but unforeseen consequences (at least by the Welsh Government). The rule’s introduction has reduced the number of properties upon which owners pay either the enhanced rate of Council Tax for second homes or pay business rates.

A LETTER TO MARK

On October 17, Pembrokeshire’s county councillors instructed the Council leader to write to the Welsh Government asking for a reduction in the 182-night rule.

Although councillors agreed an increase in the previous threshold was welcome, many felt the letting target was too high for many viable businesses.

The letter to the Welsh Government said: “Whilst 182 days is certainly achievable in some of our main tourist towns such as Tenby, Saundersfoot, and Newport, it was very difficult to achieve this in other parts of the county, particularly away from the sea.”

The letter said the rule is having a detrimental effect on Pembrokeshire’s vital tourism industry.

Council Leader Jon Harvey’s letter also said: “We do not wish to implement any local policy decisions that would conflict with Welsh Government, and, as such, I am formally writing to you to ask the Welsh Government to consider reducing the 182 days let threshold for self-catering properties to qualify for Non-Domestic Rates.”

DRAKEFORD SAYS “NO”

In a reply from Mark Drakeford, which was circulated to all Council members, the Welsh Government refused to reconsider its position ahead of the next tourism season.

Mr Drakeford said: “The primary aims of our changes to local taxes are to ensure property owners are making a fair contribution and to maximise the use of property to the benefit of local communities. This could include benefits arising from increased occupancy for short-term letting or the release of some properties for sale or rent as permanent homes for local people.

“As a consequence of the changes, self-catering properties are classed as non-domestic only if they are being used for business purposes for the majority of the year. This provides a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.”

Mr Drakeford claimed that information from businesses engaged in holiday letting showed the Welsh Government’s approach was having the effects Cardiff Bay desired. That seems contrary to data provided by the Wales Tourism Alliance and the figures produced for Pembrokeshire County Council’s budget.

Confirming the Welsh Government has no plans to reconsider its position, Mark Drakeford said: “We understand that there may be a period of adjustment, as some property owners consider their options and determine how to respond. It will be important to allow time for the changes to embed before drawing any firm conclusions.

“The initial impact on the number of self-catering properties classified as non-domestic will be known after April 2025, when two years will have elapsed since the changes took effect. This is when the Valuation Office Agency is expected to have completed a full round of routine compliance checks.”

Claiming that reconsidering the position would cause “uncertainty” in the private letting sector, Mr Drakeford wrote: “There are no plans to undertake a formal review in the short-term, nor in isolation from the broader package of measures within our three-pronged approach to tackling the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.”

That’s not only a “no”, it’s a “no” with knobs on.

YOU ALREADY HAVE ALL THE TOOLS YOU NEED

Mark Drakeford doubled down on his “no” by claiming Pembrokeshire County Council already had all the tools it needed to address the problems caused by the tourism tax.

He said: “We have extended the exceptions to council tax premiums to include properties with a planning condition which specifies that the property may only be used as a holiday let or prevents its permanent occupation as a person’s sole or main residence. We have also provided

guidance for local authorities on the use of discretion to tailor their arrangements to reflect local circumstances.”

Quite how designating a property for a holiday let allows its release onto the local housing market where homes for local families are in short supply is unaddressed.

The Finance Secretary continues: “Where a self-catering property does not meet the letting criteria and is not subject to a planning condition, the Welsh Government has provided local authorities with as much discretion as possible to consider the approach to take for the benefit of your communities.

“We consider our local taxation regime will help local authorities to incentivise the right balance between capacity within the self-catering tourism sector, and [its[ economic benefits and supporting viable communities of local residents to live and work in these areas.”

If, as Mark Drakeford claims, Pembrokeshire County Council has all the powers and options it needs to address the issue, there will, no doubt, be a flood of information coming from the Council’s Cabinet Member for Finance, Joshua Beynon, to show members precisely where the rabbit that should be in the hat is hidden.

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

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CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.

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Business

Welsh Govt shifts stance on business rates after pressure from S4C and Herald

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Ministers release unexpected statement 48 hours after widespread concern highlighted in Welsh media

THE WELSH GOVERNMENT has announced a new package of tapered business rates relief for 2026-27, in a move that follows sustained pressure from Welsh media — including S4C Newyddion and The Pembrokeshire Herald — over the impact of revaluation on small businesses.

In Milford Haven, the hard-pressed pub sector is already feeling the impact: the annual bill for The Lord Kitchener is rising from £5,000 to £15,000, while rates at the Kimberley Public House have nearly doubled from £10,500 to £19,500. The Imperial Hall’s rates are increasing from £5,800 to £9,200, prompting director Lee Bridges to question why businesses “are being asked to pay more when we use less services”. In Haverfordwest, the annual rates bill for Eddie’s Nightclub is increasing from £57,000 to £61,500.

A written statement, issued suddenly on Wednesday afternoon, confirms that ministers will introduce a transitional “tapering mechanism” to soften steep increases for tourism, hospitality and small independent operators. Full details will be published with the draft Budget later this month.

The announcement comes less than two days after The Herald’s in-depth reporting brought forward direct concerns from Pembrokeshire business owners and councillors, highlighting the uncertainty facing one of Wales’ most important local industries.

Herald reporting credited by senior councillor

Cllr Huw Murphy

Pembrokeshire County Council Independent Group Leader Cllr Huw Carnhuan Murphy publicly thanked The Herald for pushing the issue into the spotlight.

In a statement shared on Wednesday, Cllr Murphy said: “Welcome news from Welsh Government. Thanks to Tom Sinclair for running this important item in the Herald in relation to the revaluation of businesses and the consequences it will have for many.

He added: “Newyddion S4C hefyd am redeg y stori pwysig yma ynghylch trethi busnes.,” which in English is “and thanks to S4C Newyddion as well for running this important story about business taxes.”

He added that the Independent Group “will always campaign to support our tourism and agriculture industry, on which so many residents rely within Pembrokeshire”.

Media spotlight increased pressure on Cardiff Bay

On Monday, ministers said business rates plans would be outlined “within the next two weeks”.
By Wednesday afternoon — following prominent coverage on S4C and continued pressure from The Herald — Welsh Government released an early written statement outlining new support.

Industry sources told The Herald they believed the level of public concern, amplified by the media, “forced the issue up the agenda much faster than expected”.

A cautious welcome for ‘better than nothing’

Cllr Murphy welcomed the partial support, though he stressed it fell short of what many businesses had hoped for.

“This isn’t the level of support many were hoping for,” he said, “but it is certainly much better than nothing.”

Draft Budget expected soon

The full tapered support scheme will be detailed in the Welsh Government draft Budget, expected within a fortnight.

Tourism and hospitality representatives have reserved final judgment until the figures are published, but many have expressed relief that some support will continue, following weeks of uncertainty.

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Business

Pembrokeshire’s Puffin Produce a winner at British Potato Awards 2025

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PEMBROKEHIRE-BASED Puffin Produce, Wales’ leading supplier of fresh root vegetables, has been named winner of the Best Environmental/Sustainability Initiative at the prestigious British Potato Awards 2025.

The judges recognised the company’s whole-system approach that combines ambitious long-term targets with practical, measurable action across its grower network and operations.

A sector-leading grower scheme Launched in winter 2024, the ‘Sustainable Spuds’ programme is already regarded as one of the most progressive grower incentive frameworks in UK agriculture. It rewards farmers with premium payments for verifiable improvements in nutrient efficiency, energy use, soil health, biodiversity and emissions reduction. Covering the entire crop cycle, the scheme is designed to drive rapid on-farm change while remaining commercially viable.

ROOT ZERO – the UK’s first carbon-neutral certified potato Since its 2021 launch, the ROOT ZERO brand has targeted a 51% reduction in carbon intensity per kilo by 2030. Progress is ahead of schedule. The potatoes are packed in 100% plastic-free, compostable and recyclable packaging, while 0.5p from every pack sold is donated to the Bumblebee Conservation Trust. Consumer-facing campaigns also promote low-energy cooking and food-waste reduction.

Verified science-based targets and rapid decarbonisation

Through the Science Based Targets initiative (SBTi), Puffin Produce has committed to cutting Scope 1 & 2 emissions by 46% by 2030 and achieving at least a 90% reduction across all scopes by 2040. Since baseline measurements in 2019:

  • Operational emissions are already down 30%
  • 2 MW of rooftop solar panels (covering 6,000 m²) now generate 100% of summer electricity demand, saving 2.4 tonnes of CO₂e daily
  • Winter power is purchased from guaranteed zero-carbon sources
  • Transition away from fossil fuels continues at pace

Zero waste ambition delivered early

Puffin signed the Courtauld 2030 pledge in 2015 to halve food waste by 2030. The company exceeded that target five years early, achieving a 57% reduction despite growing production volumes. Rigorous crop utilisation and technology investments ensure almost every potato grown reaches a plate.

As a Leading Food Partner for FareShare Cymru, Puffin has now helped provide the equivalent of two million meals through its ‘Surplus with Purpose’ programme.

Landscape-scale collaboration In 2025 Puffin co-founded the Wales Landscape Enterprise Network (LENs) – a farmer-led, business-backed model for stacking private and public funding to deliver nature-based solutions. Early results from the first LENs projects in potato-growing catchments are striking:

  • 150+ acres of habitat and soil-health enhancements
  • 25% average increase in five key wildlife indicator species
  • 17% lower carbon emissions per tonne of potatoes
  • 40 kg less nitrogen fertiliser per hectare – with no yield penalty

Emma Adams, Head of Sustainability at Puffin Produce, commented: “This award belongs to everyone in our supply chain – growers, team members and partners – who have turned ambition into action. Agriculture is complex, but it is also one of the most powerful tools we have to tackle the climate and nature crises. By working collaboratively and investing boldly, we’re proving that rapid, measurable progress is possible.”

Rooted in Pembrokeshire and sourcing ~80% of its produce from within 50 miles, Puffin Produce remains the only BRC AA+ accredited vegetable packing facility in Wales. It is the proud home of two Protected Geographical Indication (PGI) products – Pembrokeshire Early Potatoes and Welsh Leeks – and supplies major UK retailers and wholesalers all year round.

A standout example of Welsh food production leading the way to net zero and nature recovery.

Photo:

Emma Adams head of sustainability at Puffin Produce receiving the BP Award presented by Adrian Cunnington (L) and Jamie-Sutherland

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