News
Natural Resources Wales hit with £14.6m tax bill over IR35 failings
Welsh Government confirms settlement following HMRC investigation
NATURAL Resources Wales has agreed to pay more than £14.6 million to HM Revenue & Customs after an investigation found historic failures to comply with off-payroll working rules, known as IR35.
Deputy First Minister Huw Irranca-Davies confirmed the settlement in a written statement issued on Friday (Oct 24). It brings to a close a year-long HMRC probe into how the environmental body managed contracts with freelance and agency workers.
The total liability of £14.6 million includes interest, while HMRC has also imposed a £2.9 million penalty, suspended for twelve months on the condition that Natural Resources Wales meets new compliance requirements.
The Welsh Government provided interim funding to cover an earlier “Payment on Account” to HMRC in 2024, ensuring the public body could meet its obligations while the investigation continued. Officials have now agreed a budget reduction plan to recoup the money from Natural Resources Wales over time.
Mr Irranca-Davies said: “These arrangements have been carefully developed to ensure they are affordable and minimise any impact on Natural Resources Wales’ ability to deliver its core functions and statutory responsibilities.”
The IR35 rules were designed to stop public bodies and companies avoiding National Insurance and income-tax liabilities by paying contractors through intermediaries when, in effect, they worked as employees.
Natural Resources Wales admitted in its own statement that “some aspects had been misinterpreted” and that “errors were made in how the employment status of some contractors was assessed.”
The organisation said it has since strengthened internal checks and “reviewed all processes to ensure ongoing compliance.”
The case highlights one of the largest known IR35 settlements in the Welsh public sector. The Herald understands that the issue dates back several years and relates to how consultants were engaged across multiple departments, including environmental regulation, flood management and forestry operations.
A Welsh Government source told The Herald the penalty “reflects the seriousness of the failings” but emphasised that HMRC accepted NRW’s full cooperation and commitment to reform.
The controversy adds to growing scrutiny over the financial management of arms-length bodies funded by the Welsh Government. It follows earlier questions raised by Senedd committees about governance standards and contractor oversight across devolved agencies.
While ministers insist the new settlement will not affect frontline environmental protection work, opposition parties have already demanded greater transparency over public-sector IR35 compliance.
Plaid Cymru’s finance spokesperson said the scale of the liability “shows how easily taxpayers can end up footing the bill for administrative mistakes.”
Natural Resources Wales employs more than 1,900 staff and manages forests, water quality, flood defences and environmental permits across Wales. In Pembrokeshire, the agency is responsible for key environmental assets including the Cleddau catchment, Milford Haven waterway, and Preseli forestry operations, meaning any financial pressure could have a direct impact on local conservation and flood-risk management work.
IR35 rules were first introduced in 2000 and tightened across the public sector in 2017. They require organisations to determine whether contractors should be treated as employees for tax purposes.
News
Free Pembrokeshire woodland event to explore language, landscape and belonging
A FREE woodland event in north Pembrokeshire will invite people to reconnect with the Welsh language, local landscape and cultural traditions through storytelling, creativity and time spent in nature.
Dod yn ôl at fy nghoed / To Return to My Trees will take place on Friday, July 17, from 10am to 4pm, at Canolfan Llwynihirion and Allt Tŷ Canol, near Brynberian.
The event is being hosted by Cwm Arian as part of the Preseli Woodlands Project and will be led by Welsh Druid, author and celebrant Deborah Rose Hālani.
Participants will spend time in the ancient woodland of Allt Tŷ Canol, exploring how Welsh language, landscape, folklore and local traditions have shaped one another over generations.
Organisers say the day is open to everyone, including those reconnecting with their own heritage, people learning about Welsh culture for the first time, or anyone who wants to build a deeper connection with the place they call home.
Sophie Jenkins, Outreach and Engagement Coordinator at Cwm Arian Renewable Energy, said: “Conservation isn’t only about protecting species and habitats. It’s also about nurturing our relationship with the places we live.
“The Welsh language, our stories and our landscapes have evolved together over centuries, yet many people feel disconnected from one or all of those things.
“Whether someone is rediscovering a part of their own heritage or beginning a relationship with Cymru for the first time, we hope this day creates space to connect more deeply with the land, with culture and with community.”
The Preseli Woodlands Project brings together nature restoration and cultural heritage through activities designed to help people experience, understand and care for Pembrokeshire’s woodland heritage.
The project is a partnership between Cwm Arian Renewable Energy, the South and West Wales Wildlife Trust and Pembrokeshire Coast National Park Authority.
It is funded through the Welsh Government’s National Forest for Wales Landscape Scheme 2025–2027 and administered by WCVA.
The event is free, but places are limited and advance booking is essential.
To book, email [email protected].
Community
Saundersfoot Harbour regeneration project wins national planning award
SAUNDERSFOOT HARBOUR’S redevelopment has been named Best Project at the RTPI Cymru Awards for Planning Excellence 2026.
The award recognises Phase 2 of the Saundersfoot Harbour Redevelopment Project, which has helped transform the harbour into a year-round destination with new commercial, community and visitor facilities.
Delivered by Saundersfoot Harbour, with planning input from Pembrokeshire Coast National Park Authority, the project was praised by judges as “an exemplar for coastal economic resilience in smaller settlements” and “a very good example of planning enabling place-based regeneration.”
Judges highlighted the scheme’s economic and community benefits, including investment, job creation, new local business space, improved public access, year-round activity, major events, and the reuse of brownfield and heritage assets.
They also recognised the role of planners in dealing with design changes, conservation area issues, flood risk, accessibility, and the coordination of several linked schemes within a working harbour.
Sara Morris, Director of Place and Engagement at Pembrokeshire Coast National Park Authority, said the award was a testament to the value of good planning.
She said: “We are delighted that Phase 2 of the Saundersfoot Harbour Redevelopment Project has been recognised by RTPI Cymru.
“This award is a real testament to the value of good planning in helping places adapt, thrive and deliver lasting benefits for their communities.
“Saundersfoot Harbour is a hugely important location, both locally and strategically, and this project shows how careful planning can support regeneration while respecting the character, heritage and environmental challenges of a coastal setting.
“I would particularly like to thank Andrew Richards and Nicola Gandy, who both led on the planning aspects of the project for the Authority.
“The judges’ comments underline the strength of the partnership approach behind the project, and we are very pleased to see the work of our planning team recognised alongside Saundersfoot Harbour’s ambition and commitment.”
Ted Sangster, Chairman of Saundersfoot Harbour Commission, congratulated the National Park Authority on the award.
He said: “As a trust port, we operate very much as a commercial business but with no shareholders and therefore no dividends to pay. Our strategy is to provide real, long-term benefit for our community and all users of the harbour.
“The successful Phase 2 of the harbour development now provides both an active fishing and recreational sailing harbour and a year-round visitor attraction serving an increasingly diverse range of users, and has created around 100 new jobs so far.
“Our work with local businesses and stakeholders has been greatly assisted by the open and consultative partnership with the National Park, which is based on the shared aim of sustainable economic delivery and social benefit to our community.”
As winner of the Best Project category in Wales, the Saundersfoot Harbour project will now be automatically entered as a finalist in the UK National Awards for Planning Excellence.
The national finalists are due to be announced by the RTPI on October 7, ahead of the UK national finals on December 3.
The National Park Authority also welcomed recognition for the Dark Skies Guidance for Wales, which won the Chair’s Award at the RTPI Cymru Awards.
The guidance was developed by a working group from across Wales, including the Authority’s Principal Planning Officer for Strategic Policy, Gayle Lister.
Sara Morris added: “It is particularly pleasing to see the Dark Skies Guidance for Wales recognised alongside the Saundersfoot Harbour project.
“Protecting dark skies is an important part of caring for the special qualities of Wales’ landscapes, and this guidance reflects the value of collaboration across planning, conservation and environmental disciplines.”
The RTPI Cymru Awards for Planning Excellence celebrate outstanding plans, projects and people that demonstrate the power of planning to make a positive difference to places and communities.
Business
Welsh firms named among Britain’s fastest-growing companies
Engineering, fintech and beauty brands feature in national growth rankings
THREE Welsh businesses have been named among Britain’s 100 fastest-growing companies, highlighting the growing diversity of Wales’ scale-up economy.
Avantis Group, an engineering business delivering marine and offshore energy upgrade projects, was the highest-ranked Welsh company in the ORESA Executive Search Growth Index 2026.
The company placed 43rd nationally after achieving two-year compound annual revenue growth of 105.9%.
It was joined on the list by fintech firm ANNA Money, ranked 56th, and fast-growing beauty brand Hair Syrup, ranked 67th.
Orlando Martins, founder of Growth Index, said the results showed the strength and breadth of Wales’ business community.
He said: “Wales continues to produce ambitious companies across a wide range of sectors.
“What is particularly encouraging is the range of businesses, both in the top 100 and among the companies that narrowly missed out, from engineering and fintech to consumer brands.”
Now in its fifth year, the ORESA Executive Search Growth Index ranks the 100 fastest-growing companies in the UK.
This year’s list points to the resilience of Britain’s scale-up economy, with the average company achieving compound annual revenue growth of 136.1% over two years.
Together, the Growth Index 100 generated more than £11 billion in annual revenues, with businesses on the list ranging from data centres and art galleries to GB News and Popeyes UK.
Financial services remained the largest sector represented, accounting for a quarter of all companies featured.
Healthcare also continued to rise, helped by strong performances from biotechnology businesses, while retail enjoyed a resurgence after several more difficult years.
The report also notes that pure-play AI businesses are beginning to make a visible impact on the rankings, although they have not yet come to dominate the list.
The Growth Index is compiled through independent analysis of Companies House data. Growth is measured by two-year compound annual growth rate in revenues, with companies required to have a minimum base-year turnover of £100,000 and a minimum final-year turnover of £5 million.
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