Business

Interest rate cut divides Bank committee as UK growth revised upward

Published

7 months ago

May 8, 2025

BoE lowers rates to 4.25% amid trade uncertainty and mixed economic signals

THE BANK OF ENGLAND has cut interest rates from 4.5% to 4.25%—the lowest level since May 2023—as it attempts to strike a delicate balance between supporting a fragile recovery and guarding against persistent inflationary risks.

The decision, announced following the Monetary Policy Committee’s latest meeting, was far from unanimous. Out of the nine members, five voted for the 0.25% cut, two favoured a steeper reduction to 4%, and two wanted to keep rates on hold.

“This is an important moment for the UK economy,” said the BBC’s Economics Editor Faisal Islam, noting that rates are now down a full percentage point from their peak last summer. “Further cuts are expected but they will likely be gradual and cautious.”

Interest rates had climbed steadily from late 2021 in response to post-pandemic inflation, peaking at 5.25% in August 2023. Since then, falling inflation and a slowdown in consumer activity have prompted a shift toward easing.

The rate cut aims to make borrowing cheaper, thereby encouraging spending and investment. Mortgage-holders on tracker deals will see immediate savings—around £29 per month on average—but savers are likely to see a dip in returns.

In a fresh economic outlook, the Bank upgraded its growth forecast for 2025 to 1%—up from February’s 0.75% prediction—driven by stronger-than-expected performance in the first quarter. However, the longer-term picture is less rosy: UK growth in 2026 has been revised down to 1.25%, with global growth also forecast to slow due to international trade tensions.

The economic backdrop is being shaped in part by geopolitical uncertainty, including a fresh round of tariffs introduced by US President Donald Trump. Bank governor Andrew Bailey acknowledged the unpredictable global landscape but insisted the UK remains on a “gradual path” of rate easing.

Bailey also welcomed news of a pending UK-US tariff deal, saying it could help reduce uncertainty. However, he confirmed that the Bank had not yet been fully briefed on the agreement’s details.

Mixed reactions

Trade union Unite described the interest rate cut as “long overdue” but called for broader measures to improve living standards. General secretary Sharon Graham said: “This must include a joined-up industrial strategy to tackle energy profiteering, rebuild our industrial base and boost the economy.”

Meanwhile, Nigel Green, CEO of the financial advisory group deVere, warned that the Bank was moving too cautiously. “A half-point cut would have shown the Bank is ready to act decisively,” he said, arguing that the risks of hesitation outweigh the risks of bold action in the current climate.

Chancellor Rachel Reeves struck a more optimistic tone, calling the rate cut “welcome news” for homeowners and businesses, while Shadow Chancellor Mel Stride criticised Labour’s handling of the economy, claiming “interest rates remain high” because of government mismanagement.

Housing market impact

Nathan Emerson, CEO of Propertymark, said the rate cut would be a boost for the housing sector: “With the busier spring and summer months now here, this base rate reduction should attract more buyers and sellers and improve affordability.”

While today’s rate cut is not a silver bullet, it marks a further step in what may become a sustained effort to ease financial pressure on UK households and stimulate economic activity amid a shifting global landscape.

Business

Holiday lets allowed to stay at Narberth dairy farm

Published

15 hours ago

December 5, 2025

Bruce Sinclair - Local Democracy Reporter

A CALL for a Pembrokeshire dairy farm to keep two “alternative” holiday pods sited without permission as a way of diversifying in an uncertain industry has been given the go-ahead.

In an application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, Vaynor Farm Ltd sought retrospective permission for the siting of two self-catering holiday accommodation pods at The Cart House, Vaynor Farm, Bethesda, near Narberth as part of a farm diversification enterprise.

It was before committee members as it was recommended for delegated conditional approval by senior officers despite being against the development plan.

Previous retrospective schemes, for two self-catering pods along with an application to retain a shepherd hut accommodation pod at another farm, a part of the Vaynor Farm farm enterprise, were refused in 2023 and 2025, the latter due to “an unjustified and harmful impact on the character and appearance of the open countryside”.

Detailing the current application, an officer report for members said the pods: Vaynor Farm Pod within the garden of The Cart House, and The Paddock Pod, on the edge of a small paddock, were constructed off-site and have been transported to their current locations, with external decking, hot tubs, a barbecue area and car parking provided for each pod.

It added: “A business plan has been submitted with the application, which explains that due to uncertainties associated with dairy farming, the applicant has sought to diversify the farm enterprise to incorporate tourism accommodation.

“The application makes the case that the proposed development represents farm diversification. It is acknowledged that the development has resulted in the provision of an alternative type of holiday accommodation for which it has been demonstrated there is a demand, contributing to the diversity and quality of accommodation available within the county and supporting an existing farm business, with consequent economic and social benefits.

“Evidence has been provided that demonstrates the extent to which the pods have provided income which has been used to support the farm business.

“However, officers consider that should planning permission be granted, a [planning obligation] will be necessary to ensure that the accommodation pods continue to support the farm business and are not separated from it at some future point in time.”

Delegated conditional approval limiting the use and occupation of the self-catering accommodation pods to short term holiday use only was moved by Cllr Brian Hall and unanimously backed by committee members.

Business

First wind turbine components arrive as LNG project moves ahead

Published

1 day ago

December 4, 2025

Tom Sinclair

THE FIRST ship carrying major components for Dragon LNG’s new onshore wind turbines docked at Pembroke Port last week, marking the start of physical deliveries for the multi-million-pound renewable energy project.

The Maltese-registered general cargo vessel Peak Bergen berthed at Pembroke Dock on Wednesday 26^th November, bringing tower sections and other heavy components for the three Enercon turbines that will eventually stand on land adjacent to the existing gas terminal at Waterston.

A second vessel, the Irish-flagged Wilson Flex IV, has arrived in Pembroke Port today (Thursday) carrying the giant rotor blades.

The deliveries follow a successful trial convoy on 25 November, when police-escorted low-loader trailers carried dummy loads along the planned route from the port through Pembroke, past Waterloo roundabout and up the A477 to the Dragon LNG site.

Dragon LNG’s Community and Social Performance Officer, Lynette Round, confirmed the latest movements in emails to the Herald.

“The Peak Bergen arrived last week with the first components,” she said. “We are expecting another delivery tomorrow (Thursday) onboard the Wilson Flex IV. This will be blades and is currently showing an ETA of approximately 03:30.”

The £14.3 million project, approved by Welsh Ministers last year, will see three turbines with a combined capacity of up to 13.5 MW erected on company-owned land next to the LNG terminal. Once operational – expected in late 2026 – they will generate enough electricity to power the entire site, significantly reducing its carbon footprint.

The Weather conditions were favourable for the arrival of the Wilson Flex IV, which was tracking south of the Smalls at midnight.

The abnormal-load convoys carrying the components from the port to Waterston are expected to begin early next year, subject to final police and highway approvals.

A community benefit fund linked to the project will provide for residents in nearby Waterston, Llanstadwell and Neyland.

Further updates will be issued by Dragon LNG as the Port of Milford Haven as the delivery programme continues.

Photo: Martin Cavaney

Business

Cardiff Airport announces special Air France flights for Six Nations

Published

1 day ago

December 4, 2025

Tom Sinclair

Direct services to Paris-Charles de Gaulle launched to cater for Welsh supporters, French fans and couples planning a Valentine’s getaway

CARDIFF AIRPORT and Air France have unveiled a series of special direct flights between Cardiff (CWL) and Paris-Charles de Gaulle (CDG) scheduled for February 2026.

Timed to coincide with two major dates — the Wales v France Six Nations clash on Saturday 15 February and Valentine’s weekend — the flights are designed to offer supporters and holidaymakers an easy link between the two capitals.

For travelling French rugby fans, the services provide a straightforward route into Wales ahead of match day at the Principality Stadium, when Cardiff will once again be transformed by the colour, noise and passion that accompanies one of the tournament’s most eagerly awaited fixtures.

For Welsh passengers, the additional flights offer a seamless escape to Paris for Valentine’s Day, as well as opportunities for short breaks and onward travel via Air France’s wider global network.

Cardiff Airport CEO Jon Bridge said: “We’re thrilled to offer direct flights to such a vibrant and exciting city for Valentine’s weekend. Cardiff Airport is expanding its reach and giving customers fantastic travel options. We’ve listened to passenger demand and are delighted to make this opportunity possible. There is more to come from Cardiff.”

Tickets are already on sale via the Air France website and through travel agents.

Special flight schedule

Paris (CDG) → Cardiff (CWL):