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Labour’s defence spending boost: Welsh SMEs to benefit, but questions remain

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THE UK Labour Government has announced a significant increase in defence spending, pledging to raise investment to 2.5% of GDP by April 2027, with a further commitment to reach 3% in the next Parliament. The move aims to support national security and drive economic growth, with Welsh small and medium-sized enterprises (SMEs) set to benefit from new spending targets. However, concerns remain over the effectiveness of the strategy in delivering long-term economic prosperity.

More opportunities for Welsh firms

Under Labour’s Defence Industrial Strategy, more money will be directed to SMEs, with the government setting new spending targets to ensure smaller firms gain better access to defence contracts. A new SME hub will also be launched to help businesses enter the supply chain more easily.

Currently, Welsh defence SMEs support an estimated 5,940 jobs. The government hopes to grow this number by increasing procurement from small businesses. Last year, £914 million was spent on defence contracts in Wales, but only 4% of direct Ministry of Defence (MOD) spending went to SMEs. Labour’s plan aims to reverse a decline in SME participation under previous governments.

Doubts over economic impact

Labour has positioned defence as an “engine for economic growth,” but some experts are not convinced. Critics argue that military spending often benefits large corporations more than small firms. Economic analysts suggest that investment in public services, infrastructure, and green energy could deliver greater returns for regional economies.

A report by the Institute for Fiscal Studies warns that increasing defence spending while adhering to Labour’s fiscal rules could divert funding from public services. With concerns growing over NHS waiting times and education funding, some question whether prioritising military investment is the best way to deliver economic stability.

Funding shift sparks criticism

The government has also faced backlash for reducing Overseas Development Assistance (ODA) from 0.5% to 0.3% of Gross National Income (GNI) to help finance the defence budget increase. Aid organisations argue that cutting foreign aid to boost military spending harms the UK’s global reputation and influence.

Challenges within the defence sector

Despite the optimism surrounding the new measures, structural issues in the UK defence industry could limit the impact on SMEs. The sector has struggled with budget overruns, delays, and supply chain inefficiencies, raising concerns about whether smaller firms will see meaningful benefits.

Some businesses have also paused hiring and investment plans due to uncertainty surrounding the Strategic Defence Review, which is ongoing. Industry leaders warn that without clear long-term procurement plans, SMEs may find it difficult to plan ahead.

Fiscal balancing act

Labour’s defence spending plans align with previous government targets, but how they will balance this increase with other spending commitments remains unclear. Chancellor Rachel Reeves has pledged to maintain fiscal discipline, but experts warn that significant defence increases could lead to cuts elsewhere.

The Office for Budget Responsibility has said that meeting both defence spending targets and public service commitments will be challenging without new revenue sources. This raises concerns about potential tax hikes or cuts in other departments.

Reaction from politicians and business leaders

Prime Minister Keir Starmer defended the policy, saying:

“Wales’s defence industry supports thousands of good jobs and represents British manufacturing at its best. Increasing our investment in defence is not only bolstering our national security but also putting more money into working people’s pockets and boosting economic growth as part of our Plan for Change.”

However, critics have raised doubts about whether the strategy will work. Former Conservative Defence Secretary Ben Wallace warned:

“Throwing money at the defence sector without fixing procurement inefficiencies will not deliver the promised benefits. SMEs need long-term stability, not short-term spending targets that may shift after the next election.”

A long road ahead

Labour’s defence spending plans present both opportunities and challenges for Welsh SMEs. While new funding targets and the SME hub could open doors, concerns remain over economic priorities, industry inefficiencies, and fiscal sustainability.

With the Strategic Defence Review ongoing, businesses will be watching closely to see whether the promised benefits materialise—or whether this initiative will fall short of expectations.

 

Charity

Milford Haven Beer Fest set for Bank Holiday return

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Festival promises live music, Welsh ales and community spirit at the waterfront

MILFORD HAVEN Beer Fest is set to return later this month, with organisers promising another packed day of live music, craft drinks and festival atmosphere.

The popular annual event will take place at Milford Waterfront on Saturday, May 23, inside the Ascona Group Marquee, with doors opening at 12:00pm.

Organisers say no advance tickets will be available, with entry operating on a first come, first served basis. Another sell-out is expected and early arrival is strongly advised.

A wide range of Welsh breweries and drinks producers will be represented, including Tenby Harbwr Brewery, Bluestone Brewing Company, Gethin’s Cider, Mantle Brewery, Gower Brewery and Core of the Poodle.

Tiny Rebel Brewery will also be serving lagers, IPAs and its new stout, Coal Drop, while Barti Rum will showcase its latest canned drinks. Prosecco and Pimm’s will also be available.

Entertainment throughout the day will be hosted by Pure West Radio, with headliners 4th Street returning to the waterfront.

The line-up also includes a DJ set from former Welsh rugby international and British and Irish Lion Josh Navidi, alongside performances from Steve Bartram, Big Chicken, Jake Taylor, Function 22 and Natalie O’Brien.

Festivalgoers will also be able to enjoy a street food zone featuring Grub Tacos, Junkyard Dogs and Reeves BBQ.

Community support

Nathan Rees, chairman of Milford Haven Round Table said: “The Beer Festival is a huge highlight for us – not just for the atmosphere, but for the impact it has.

“Every penny raised goes back into the community, funding events like our Carnival and Fireworks and supporting local causes.

“We’re also incredibly grateful to The Ascona Group for their continued sponsorship and to the Port of Milford Haven for their ongoing support as our Major Events Partner, as well as all the Beer Festival sponsors for 2026.”

Ticket information

Entry costs £25 and includes four drink tokens, a festival cup and live entertainment throughout the day.

Additional drink tokens will cost £2.50 each, with cash and card accepted.

The event is strictly over-18s only.

Organisers say there will be a 100 per cent bag search policy, with visitors strongly advised not to bring bags. Free water will be available, and dogs will not be allowed.

 

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Pembroke Dock charity shop expands to support hospice care

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SHOP NOW OPEN SEVEN DAYS A WEEK AFTER EXPANSION INTO ADJOINING UNIT

A CHARITY shop in Pembroke Dock has expanded into a neighbouring unit to help raise more money for local hospice care.

Paul Sartori Hospice at Home has completed a knock-through at its shop in Bierspool, London Road, creating a larger retail space and allowing the charity to offer a wider range of items, including furniture.

The expanded shop was officially opened on Friday (May 1) by the outgoing Mayor of Pembroke Dock, Cllr Michelle Wiggins.

The shop team, led by Kelly Elliot and supported by volunteers, worked for several weeks to prepare the new-look store for customers.

Head of Retail Julia Brady welcomed guests at the opening, while the charity also thanked staff, volunteers and supporters who helped decorate and prepare the premises.

Special thanks were given to Gill at Pembroke Dock Tesco for donating treats for customers and staff on the day.

Paul Sartori Hospice at Home operates nine retail shops and an eBay department. Income from donations and sales helps fund the charity’s clinical teams, who provide free specialist palliative care to patients and families across Pembrokeshire.

The charity says it costs £3,600 every day to deliver its free clinical services. Around 30% of that cost is funded through Hywel Dda Health Board, with the remainder raised through retail income, fundraising and community support.

The Pembroke Dock shop is now open seven days a week, giving people more opportunities to shop, donate and support local hospice care.

Paul Sartori Hospice at Home was established in memory of Father Paul Sartori, a much-loved local priest who recognised the need for hospice care before his death from cancer at the age of 39.

The charity provides care for people with any life-limiting condition, not only cancer, and supports patients of all faiths and none. It operates an open referral system, with referrals accepted from patients, families, friends and healthcare professionals.

Paul Sartori Foundation Ltd operates under the name Paul Sartori Hospice at Home. The charity was registered in 1982 and will celebrate its 45th anniversary during 2027/2028.

 

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Ysgol Bro Teifi celebrates national championship rugby success

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UNDER-18 SIDE LIFTS WRU PLATE AFTER HARD-FOUGHT FINAL AT RODNEY PARADE

YSGOL BRO TEIFI’S under-18 rugby team are celebrating national success after winning the WRU Schools and Colleges Plate Final at Rodney Parade.

The Ceredigion side travelled to Newport to face Ysgol Maes y Gwendraeth in a fast, physical and closely contested final.

Bro Teifi made a strong start, with tries from Elis Evans, Llew Thomas and Jack Brown giving them an early advantage. Dafydd Nichols-Evans added the extras from the kicking tee as the team went into half-time 19-14 ahead.

The second half proved even tighter, with Ysgol Maes y Gwendraeth applying sustained pressure and forcing Bro Teifi to defend with discipline and determination.

A late try gave Bro Teifi breathing space before Nichols-Evans held his nerve in the closing stages, landing a crucial penalty to seal a 27-19 victory.

The school said the win reflected the hard work, commitment and talent of the players, as well as the support of staff, parents and fans throughout the season.

Headteacher Gareth Evans said: “This game is the culmination of a tough season for the boys as they beat much bigger schools on the way to the final.

“It also builds on the school’s reputation in sport, with numerous successes this year across a range of sports and age groups.

“I would like to thank all the school staff for their tireless work in ensuring these experiences for our pupils, and the parents for their support.”

Photo caption: Plate winners: Ysgol Bro Teifi’s under-18 rugby team celebrate their national success at Rodney Parade.

 

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