Business
National Insurance hike threatens Welsh tourism industry
THE SUDDEN closure of Oakwood Theme Park, Wales’ largest theme park, has sparked concerns about the financial sustainability of the country’s tourism industry, with business owners warning that increased National Insurance (NI) contributions could push more attractions to the brink.
Oakwood, a staple of Welsh tourism for nearly 40 years, announced its closure last week, citing “unrelenting economic challenges,” including rising operational costs, falling visitor numbers, and increased wage and tax burdens. The move has sent shockwaves through the tourism sector, with fears that other major attractions could suffer a similar fate.

Financial pressure mounting
Industry leaders have pointed to the recent increase in employer NI contributions as a significant factor exacerbating financial difficulties. Under the latest changes, the employer NI rate rose from 13.8% to 15%, while the threshold for contributions was lowered from £9,100 to £5,000. These adjustments, which took effect in April 2025, have placed an additional estimated £1 billion burden on the UK’s hospitality and tourism sectors.
Kate Nicholls, Chief Executive of UKHospitality, warned: “The scale of this change is unprecedented, bringing three-quarters of a million people into this employer tax for the first time. The impact will be enormous, forcing businesses to abandon investment, change recruitment plans, reduce headcounts, and increase prices to cope with these cost increases.”
Welsh attractions at risk
The concerns extend beyond Oakwood, with fears that other key Welsh attractions could struggle under the increased tax burden. Smaller family-run sites, seasonal tourism businesses, and even large-scale operations dependent on high visitor numbers may be particularly vulnerable.
Dominic Paul, CEO of Whitbread, which owns Premier Inn and other hospitality businesses, highlighted the disproportionate effect of rising NI costs: “These increases disproportionately affect part-time and minimum wage workers, which could hinder growth and employment opportunities across the sector.”
Giles Fuchs, owner of Burgh Island Hotel, echoed similar concerns: “The hospitality sector plays a crucial role in employment across the UK, contributing £93bn to the economy annually. The NI hike risks stifling growth at a critical time, putting thousands of jobs in jeopardy.”
Closure fears across Wales
The ripple effects of Oakwood’s closure are already being felt in Pembrokeshire, where local businesses reliant on visitor traffic are anticipating a sharp downturn. Local café owner Bethan Hughes said: “Oakwood brought thousands of visitors to the area every year. We’ve already seen bookings drop, and it’s worrying to think what could happen if other attractions close too.”
Meanwhile, the Welsh tourism board has called for urgent support measures to prevent further closures. A spokesperson said: “Tourism is one of Wales’ biggest economic drivers, and we need targeted relief to help businesses cope with these rising costs. Without action, we could see a major decline in the sector.”
Calls for Government intervention
With concerns mounting, industry figures are urging the government to reconsider its policies. UKHospitality and other business leaders are lobbying for a reversal of the NI increase or targeted tax relief for tourism businesses to mitigate the impact.
Nick White, CEO of Bistrot Pierre, which recently announced the closure of eight UK locations due to rising costs, warned: “If the government does not step in, we will see more closures, more job losses, and a damaged tourism industry that will take years to recover.”
As Wales braces for an uncertain tourism season, businesses, workers, and visitors alike are left wondering whether further attractions will follow Oakwood into closure—or if policymakers will step in to prevent an industry-wide crisis.
Business
Why mental health support is now critical for Welsh businesses
MENTAL HEALTH support has become a key issue for businesses in Wales as employers face growing pressure to help staff manage financial strain, stress and wellbeing at work.
The issue is being highlighted during Mental Health Awareness Week, with new insight from Reed showing that support for employee wellbeing is now an important part of attracting and retaining staff.
Workers in Wales said they need an annual income of £42,000 to live comfortably, compared with an average regional salary of £36,000. That leaves a “comfort gap” of £6,000.
Reed’s latest salary guides also show that 71% of workers say pay has become more important since the cost-of-living crisis, with many employees feeling the pressure of rising everyday costs.
The strain is not only financial. Separate research shows almost one in four workers in Wales, 24%, say they have previously been formally diagnosed with a mental health condition — the highest reported proportion of any UK region.
Pay alone ‘not enough’
Becky Hole, Regional Director at Reed, said employers now needed to look beyond salary alone.
She said: “In Wales, financial pressure and mental health challenges are closely linked. Our data shows that many employees are placing greater importance on stability and support, particularly where salary growth is constrained.
“This means benefits that support work-life balance and mental wellbeing are becoming a much more important part of how valued people feel at work.
“Organisations that prioritise employee wellbeing also benefit in tangible ways. By providing stronger support for mental health, employers can lower staff turnover and reduce the long-term costs linked to ongoing recruitment and the loss of skilled, experienced employees.”
What workers want
WHEN asked what would help them manage stress, 35% of workers in Wales said they wanted more flexible working, 34% wanted better mental health training for managers, and 30% wanted clearer communication about support already available.
However, Reed said there remains a gap between what workers want and what they receive.
The most common benefits currently reported by workers in Wales are onsite parking, at 28%, flexi time, at 26%, and hybrid working, at 23%. Nearly one in five workers, 18%, said they receive no benefits at all.
Ms Hole added: “What this shows is a disconnect between what employees say would most help them manage stress and how clearly mental health support is currently embedded and communicated.
“However, Wales stands out when it comes to flexi time, with a higher proportion of employers offering this benefit compared to other regions — a positive step given its proven role in supporting employee wellbeing and work-life balance.
“Flexible working, open conversations about mental health and managers who are properly trained all come through strongly as priorities.
“Employers have a responsibility to look after their people, and those who want to help their workforce truly destress need to ensure their benefits are visible, accessible and actively support everyday mental resilience.”
Reed said businesses that take wellbeing seriously are more likely to retain skills, stability and trust over the long term.
Business
Pembroke Power Station National Grid power plans backed
A CALL to site specialist diesel generators at Pembroke Power Station to help keep the lights on in the event of a National Grid shutdown has been given the thumbs-up by county planners.
In a screening application to Pembrokeshire County Council, RWE Generation UK PLC, through Ove Arup & Partners Ltd, sought to site up to six containerised diesel generators, diesel storage tank(s) and electrical connections at Pembroke Power Station, Pwllcrochan, near Pembroke.

The application site is within the site of the existing Pembroke Power Station, a combined-cycle gas turbine (CCGT) station which began commercial operation in September 2012, with a gross consented capacity of about 2,199 megawatts electric (MWe), replacing the previous oil-fired power station which operated for almost 30 years and was decommissioned in 1999.
A supporting statement says, subject to confirmation, it is considered to comprise permitted development, the scheme “a standalone plant, with its own fuel supply, capable of starting up, operating and shutting down independently from the power station”.
It adds: “It is required only in an emergency to maintain plant status and keep the power station operationally ‘ready’ in the event of a total or partial shutdown of the National Grid system. It is not required for the normal operation of the power station and does not extend its capacity, which remains as already consented, therefore it is not considered a change or extension.”
On need, it says it is mandatory that all electricity generators of over a megawatt have to adopt a new minimum standard of asset resilience; power stations “must be capable of restoring demand on the National Grid electricity transmission system in the event of a total or partial shutdown of the National Grid system,” the Power Station not currently meeting this new asset resilience standard.
It says construction is hoped to start in July 2026, lasting approximately nine to 12 months, the main part across the summer months.
The application was considered by officers to fall under permitted development, saying it “does not require Environmental Impact Assessment because the development, including cumulatively with other development in the locality, is not likely to have significant effects on the environment”.
Business
MamGu Welshcakes earns B Corp certification
A WELSHCAKE maker from Wales has joined a global movement of businesses recognised for high standards of social and environmental responsibility.
MamGu Welshcakes has announced that it has become a Certified B Corporation, also known as a B Corp.
The certification, verified by B Lab, recognises companies which meet standards covering social and environmental performance, transparency and accountability.
The assessment looks at a company’s operations across areas including governance, workers, community, the environment and customers. Businesses must also legally embed a commitment to purpose as well as profit.
MamGu Welshcakes now joins more than 10,700 B Corps globally, including more than 2,700 in the UK. Well-known certified businesses include The Guardian, Innocent Drinks, Patagonia, The Big Issue, Finisterre, Elemis and Sipsmith Gin.
The company says it is only the 13th food and drink producer in Wales to receive B Corp certification.
Chris Turner, CEO of B Lab UK said: “We are pleased to have B Corps of all shapes and sizes as part of our community – from startups to multinationals and across many different industries.
“Business is a powerful force and B Corps demonstrate that positive impact is possible in any sector. Welcoming MamGu Welshcakes is an exciting moment for the food and drink industry.
“B Lab UK and the rest of the B Corp community are really pleased that MamGu Welshcakes is paving the way for a new way of doing things.”
Sam Swift, director of MamGu Welshcakes said: “From day one we have always strived to be a business rooted in the community and we’re over the moon to now achieve B Corp certification.
“It’s a clear and rigorous standard that holds us accountable for how we do business; from supporting our people and communities to reducing our environmental impact.”
He added: “B Corp is not just a badge and certainly not the finish line, in fact we see this moment as a new baseline for everything we do next.
“We’re already looking at ways we can be better at everything, from who we work with to the ingredients we use and where they come from.”
B Lab is a non-profit organisation which says it is working to transform the global economy to benefit people, communities and the planet.

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