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Welsh business confidence rises in February

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BUSINESS confidence in Wales increased by three points to 24% in February, according to the latest Business Barometer from Lloyds Bank.

While optimism in firms’ own trading prospects fell by three points to 31%, confidence in the broader economy climbed by ten points to 18%. Taken together, this resulted in a headline confidence reading of 24%, up from 21% in January.

A net balance of 20% of businesses in Wales also indicated plans to expand their workforce over the next year, marking a 15-point rise from the previous month.

Looking ahead to the next six months, Welsh businesses highlighted key areas for growth. These included diversifying their offerings by launching new products or services (42%), investing in staff training and development (36%), and incorporating new technology such as automation or artificial intelligence (34%).

UK confidence at six-month high

Across the UK, business confidence saw a significant increase of 12 points in February, reaching 49%—its highest level since August 2024.

Optimism in trading prospects rose by six points to 57%, while confidence in the wider economy surged by 18 points to 42%.

The North East emerged as the most confident region, recording 69%, followed by the North West and East of England, both at 61%.

Sector growth across the board

All four surveyed sectors reported double-digit increases in confidence. Manufacturing posted the largest improvement, rising by 13 points to 51%, while construction saw a 14-point increase to 50%. Retail confidence climbed by 11 points to 51%, and the services sector grew by 10 points to 48%.

Within the services sector, hospitality firms reported a particularly strong rebound, with sentiment reaching its highest level in several months. Confidence levels varied, with the services sector seeing its strongest position in four months, while manufacturing reached a seven-month high.

Expert insights

Dave Atkinson, regional director for Wales at Lloyds Bank, said: “It’s encouraging to see Welsh business confidence return to growth and more firms planning to hire—something that benefits both their operations and local communities.

“We’ll continue to support Welsh companies as they drive forward with their growth strategies and capitalise on new opportunities.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, added: “The rise in business confidence demonstrates the resilience of UK businesses and their ability to navigate challenges such as rising costs and uncertainty.

“Increased optimism and improved trading prospects are encouraging businesses to invest in workforce growth and upskilling. This aligns with the expectations set at the beginning of the year, where 70% of businesses anticipated an increase in turnover for 2025.

“To maintain this positive momentum, businesses must continue to innovate and adapt, ensuring they remain competitive and resilient in the face of future challenges.”

 

Business

205-unit storage site at Pembrokeshire farm submitted to planners

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A CALL to allow a Pembrokeshire farm to keep a storage facility for more than 200 caravans, boats, cars and farm machines as a form of diversification has been submitted to county planners.

In an application to Pembrokeshire County Council, Mr & Mrs Davies, through agent A.D Architectural Design Consultants Ltd, seek retrospective permission for a farm diversification scheme to accommodate the storage of caravans, boats, cars and farm machinery in four of eight agricultural sheds and on hard-standing concrete courtyards at Froghall Farm, Spittal.

The works were completed back in 2019.

A supporting statement accompanying the application said: “At present, four of the eight shed structures on the site form part of the caravan and boat storage scheme, with additional touring caravans stored externally on the concrete courtyards.”

It said the storage provision was split as follows: Shed 1 – farm workshop, and 30 caravans, motorhomes, boats & cars; shed 2 – 16 caravans; shed 3 – 28 caravans, motorhomes, boats & cars – 28; shed 8 – cubicle shed, 11 units of farm machines, motorhomes & caravans; courtyard storage of 120 touring caravans, for an overall storage of 205 units.

The statement added: “It would take place in an accessible location, would incorporate sustainable transport and accessibility principles and would not result in a detrimental impact on highway safety or in traffic exceeding the capacity of the highway network; access road is a no-through road with no increase in traffic due to the nature of development.

“There won’t be a constant stream/flow of traffic as the site’s used for storage. Our client offers a towing service to sites in and around Pembrokeshire, which is used by 45 per cent of their customers, who are unable or prefer not to tow themselves. This gives our client control over the flow of traffic.”

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

 

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Business

Wolfscastle spa earns prestigious AA recognition

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WOLFSCASTLE COUNTRY HOTEL and Spa in Pembrokeshire is celebrating national recognition after its luxury spa was included in the prestigious AA Recommended Spa Awards.

The accolade highlights the hotel’s commitment to delivering high-quality wellbeing experiences, exceptional service, and first-class facilities.

The AA Recommended Spa status is awarded to venues that provide an outstanding guest experience, combining professional expertise, premium treatments, and a relaxing environment. The recognition places Wolfscastle among a select group of leading spa destinations across the UK.

Grace, Levi and Bethan, full-time spa therapists at the award-winning Wolfscastle Spa.
Hot stone massage in the Wolfscastle Country Hotel & Spa treatment room.

The spa, which has been open for nine years, has established itself as one of Pembrokeshire’s top wellness destinations, welcoming both hotel guests and day visitors seeking relaxation in a tranquil countryside setting.

Facilities include hydrotherapy experiences, thermal suites, and dedicated relaxation areas, alongside a wide range of luxury treatments designed to help guests unwind and recharge.

Bethan, Spa Manager at Wolfscastle Country Hotel & Spa, said: “We’re absolutely delighted to be recognised by the AA as a Recommended Spa. The team here work really hard to make sure every guest feels relaxed, welcomed and properly looked after from the moment they arrive.

“To receive this recognition is very special for us and reflects the care and effort our therapists put into every treatment.”

The award further strengthens the hotel’s reputation as one of West Wales’ leading hospitality destinations, offering award-winning dining, boutique accommodation, and premium wellness experiences.

Guests can enjoy spa days, overnight breaks, and tailored treatments throughout the year.

For more information or to book, visit www.wolfscastle.com.

The hotel is also marking a significant milestone this year, with owner Andrew Stirling celebrating 50 years at the helm.

 

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Business

Pembroke South Quay boat shed expansion plans submitted

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A PADDLEBOARDING and canoeing company’s call for an extension to a boat shed at Pembroke’s South Quay, below its historic castle, has been submitted to county planners.

In an application to Pembrokeshire County Council, G Booth of Paddle West CIC, through agent James Dwyer Associates, seeks permission for an extension to the stone-built boathouse, adjacent to the cliff on South Quay fronting the Mill Pond, Pembroke.

A supporting statement says: “It is intended to erect a single storey ‘lean-to’ building, or ‘shed’ for the storage of boats, such as canoes and kayaks, and related equipment, on a vacant space adjacent to the existing stone-built boathouse.”

It adds: “The boathouse and the intended adjacent boat storage shed is located, as is to be expected, in close proximity to water, the Mill Pond. The Mill Pond is the main area of activity for Paddle West, a Community Interest Company, providing boating activities, kayaking, canoeing and paddle boarding, frequently for young people and families.”

It goes on to say: “It is intended that the structure would be lightweight, erected on the exiting hard standing. The ‘shed’ would be used for the storage of boats and related equipment.”

With regard to the historic setting, it adds: “Although the stone-built boathouse appears not to be listed, it is recognised that the walls above are listed and together they are a piece.

“Accordingly, through form and external materials proposed, timber cladding and profile sheet roofing, the aim is to ensure that the structure would be subservient and muted and not detract or compete with the visual aesthetic of the boathouse or historic walls. In effect the addition would blend into the background.”

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

The boathouse is sited near to the new Henry Tudor Centre in South Quay, which is due to open in Spring 2027.

The centre, expected to receive around 30,000 visitors a year, will tell the story of Henry Tudor, son of Pembroke, his Welsh ancestry and his impact on our national story, Welsh culture and our wider British heritage.

The restored derelict South Quay buildings will also house a new library and community café, and a healthcare, social services and supported employment facility in the adjoining premises.

 

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