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Welsh beer and pub sector injects over £1.5 billion into economy

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Industry warns of financial strain as WBPA urges Senedd for urgent business rates reform

WALES’ beer and pub sector contributes more than £1.5 billion to the national economy and supports over 68,000 jobs, but rising costs are putting its future at risk, the Welsh Beer and Pub Association (WBPA) has warned.

The WBPA’s inaugural State of the Nation 2025 report highlights the sector’s crucial role in providing local employment, boosting tourism, and sustaining rural communities. However, at the report’s launch at the Senedd on Wednesday (Jan 22), the association cautioned that ongoing financial pressures are threatening its viability.

Rising closures and financial disparity

Wales has experienced higher pub closures than the rest of the UK, with 6.5% of pubs shutting down between 2018 and 2023, compared to 4.6% in England and 3.9% in Scotland. The WBPA attributes this to a combination of factors, including lower business rates relief, which leaves Welsh pubs an average of £6,000 worse off annually compared to their English counterparts.

The Bridgend Inn, a former pub in Haverfordwest, now shut for good
The Starboard in Milford Haven, now closed, was once a popular pub

While the rate of closures slowed slightly in 2024, the impending increase in National Minimum Wage and National Insurance Contributions is projected to cost the sector over £650 million, adding further strain on an already fragile industry.

Call for urgent reform

The WBPA is calling on the Senedd to introduce permanent business rates reform to provide certainty for pub operators, mitigate soaring costs, and phase in new employment charges set to take effect in April. It is also advocating for beer duty to be reduced to align with EU averages.

Emma McClarkin, CEO of the WBPA, said: “The beer and pub sector is a vital Welsh industry that so many people rely on for their livelihoods. It is economically and socially significant, providing jobs for young adults and those seeking flexible work.

“Our industry pours more than a billion into the economy and is crucial for jobs, communities, and tourism. However, with pubs making just 12p profit per pint on average due to high business costs, the sector is in a fragile state.

“If the Senedd supports the industry, our sector and its workforce can continue to boost the economy, employ more people, and remain at the heart of Welsh communities.”

Preserving a Welsh tradition

The WBPA is urging policymakers to collaborate with the industry to create a sustainable economic framework that minimises additional costs and regulatory burdens. It argues that such measures would allow pubs and breweries to plan financially and continue operating across the UK.

Nick Payne, Chairman of the WBPA and Managing Director of S.A. Brains, said: “Our sector has a rich history and unique character that sets it apart from the rest of the UK. Over the past decade, we have seen a surge in local breweries, and the past year has seen a slowdown in pub closures.

Nick Payne, Chairman of the WBPA and Managing Director of S.A. Brains

“However, we cannot ignore the fact that margins are still tight and being squeezed further. Many operators are struggling with rising costs, and the national economic outlook remains uncertain.

“We need policymakers in Cardiff Bay and Westminster to reassess their policies, particularly their cumulative impact, and work with us to establish regulatory and economic frameworks that will keep our breweries and pubs at the heart of local communities and economies.”

 

Business

Main Street Music to close retail shop as owner focuses on handmade guitars

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A POPULAR Pembrokeshire music shop is changing the way it operates, with Main Street Music confirming it will no longer trade as a retail shop from September 1.

The business said there will be an immediate 15% sale on all stock, but stressed that Main Street Music is not disappearing completely.

The owner said the decision had been made “with a heavy heart”, adding that the shop’s closure as a retail outlet would be a loss for Pembrokeshire as the county’s last professional guitar dealership.

He said his long-term passion had always been making musical instruments, something he had done since his teenage years, later receiving scholarships and a fellowship for his studies.

After college, he was given the opportunity to buy the business at the age of 24.

He said: “I have had an amazing time running this shop, giving it everything I’ve got, met some wonderful people and sold some incredible guitars.”

Although the business itself remains successful, he said tighter retail margins, dealership pressures and rising costs had made it difficult to grow in a way that would allow him to employ others and spend more time in the workshop.

The shop will eventually reopen as an appointment-only workshop and showroom for handmade guitars and repairs.

Current repair work will continue on a case-by-case basis by appointment only.

Main Street Music thanked customers for their support over recent years, saying the owner was proud of where the shop had been taken.

Caption:

Main Street Music will close as a retail shop from September 1, but will continue as an appointment-only workshop and showroom for handmade guitars and repairs.

 

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Fishguard and Goodwick Bowls Club set to appeal council’s refusal of signage

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A Pembrokeshire sports club, which was recently refused permission by the council to keep advertising signs which support its activities, is looking to fight that decision.

Earlier this month, in an application refused by Pembrokeshire County Council on the grounds of visual impact, Fishguard & Goodwick Bowls Club sought retrospective permission for up to 36 signs on land close to the town’s Phoenix Centre.

The signs, which the applicants said provide “an important source of revenue for the Fishguard and Goodwick Bowls Club, supporting the ongoing operation and maintenance of local community sporting facilities,” had been in place for some 18 months, being removed ahead of the formal planning application.

Speaking after the refusal, Richard Brind, club captain of Fishguard & Goodwick Bowls Club, said the club had discussed challenging the decision, and had been taking advice from local county councillors about the best potential route, with options including a direct appeal through the Welsh Government’s PEDW (Planning and Environment Decisions Wales).

“We acted in good faith as we believed we had permission from a PCC department to install the signs.

“The irony in all of this is we actually paid PCC to have the signs made by their sign making department (who were the department that told us it would be OK to install the signs on our fence).

“The landlord of the grounds which is PCC have told us that they had no objection to us installing the signs, providing planning is granted.”

Mr Brind added: “I’m disappointed with the way the planning department have handled the process, not the decision, but I do think that was wrong; other sports clubs have signs up in the area, it doesn’t seem right.”

On the financial implication, he said: “Unfortunately, the costs of everything goes up, the costs to maintain the green are not covered by our membership, this year we’re probably going to spend £5,000. The money from the signs was certainly helping to keep the club viable, if we don’t get that money from somewhere, maybe through increased fees; membership would have to go up by a half, from £80 to £120.

“The funding we receive from the ads, it’s not vital but it’s a definite help, losing it would be ‘death from 1,000 cuts,’ money slowly trickling out.”

He finished: “I could understand it if it was an area of outstanding natural beauty rather than a car park, where we are we’ve got Jewsons and a petrol station.”

A spokesman for Pembrokeshire County Council said: “The Local Planning Authority has considered the application in accordance with the Town and Country Planning (Control of Advertisements) Regulations 1992 (as amended), which require due consideration of the impact signage would have on visual amenity and public safety.

“While comments regarding advice the applicant received from other council departments and landowner consent are noted, each application must be determined on its own merits with regard to relevant policy and legislation.

“The Authority recognises the club’s valuable role in the community; however, financial considerations are not material to the assessment of advertisement consent.

“Whilst there is a right of appeal to Planning and Environment Decisions Wales (PEDW), the Local Planning Authority remains willing to engage with the applicant regarding any revised proposals they may wish to present.”

 

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Business

Government backs high street with crackdown on cheap imports

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MINISTERS have announced plans to speed up reforms aimed at helping high street businesses compete with online retailers and overseas sellers.

The Treasury said changes to low-value imports will now be brought forward by six months, with customs duty relief on goods worth £135 or less set to be scrapped from October 2028.

The move is designed to stop online retailers gaining an unfair advantage over shops, pubs, restaurants, hotels and other high street businesses.

At present, many cheaper imported goods can enter the UK without customs duty, a system which ministers say has left traditional retailers at a disadvantage.

The Government is also reviewing how VAT is collected from businesses trading through online marketplaces, amid concerns that some sellers are failing to pay the tax they owe.

The Treasury said revenue raised from tougher VAT enforcement would be used to help improve the business rates system for high street firms.

Dan Tomlinson, Exchequer Secretary to the Treasury, said: “This action tackles the unfair competition and dodgy businesses that are doing real damage to our high streets.

“And by making sure that tax is paid when it’s owed, we can raise revenue to put back into improvements to the business rates system for pubs, restaurants, hotels and other high street businesses.”

The package also includes a consultation on VAT reform for land used in new social housing developments.

Ministers say the change could help speed up the delivery of affordable homes by making the tax system better reflect how social housing schemes are developed.

The Treasury said the measures form part of wider plans to make the UK tax and customs system simpler, fairer and more focused on economic growth.

 

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