Business

Restaurant boss says minimum wage rise ‘disaster waiting to happen’ for hospitality

Published

5 months ago

November 25, 2025

“If people – politicians, decision makers, landlords, councillors – don’t start understanding just how fragile this sector is becoming, the places they love simply won’t be here in a year or two.”

A LEADING Milford Haven publican has warned that next year’s minimum wage increase could push many Pembrokeshire pubs and restaurants “off a cliff”, saying the hospitality sector can no longer absorb rising costs.

Dan Mills, owner of Martha’s Vineyard on the Milford waterfront, said the decision to raise the National Living Wage to £12.71 an hour from April will hit small independent businesses hardest at a time when margins are already under intense pressure.

The rise is part of the UK Government’s plan to boost the earnings of lower-paid workers. But Mr Mills said the cumulative effect of wage rises, tax changes and energy prices was becoming unsustainable.

‘We can’t just absorb the cost’
Reacting to the announcement, Mr Mills said the assumption that hospitality businesses can simply absorb rising costs “couldn’t be further from the truth”.

“We’re already running on margins that get smaller by the month, and this government seems determined to squeeze every last drop out of us,” he said.

“Energy costs are going up, ingredients are going up, rents are going up, business rates are going up and VAT is absolutely crippling the industry. Meanwhile our customers, real people, families, are already struggling under the weight of this government in their everyday lives. We can only pass on so much before they simply stop coming out.”

Concerns for local suppliers
Mr Mills stressed that the impact would not fall solely on pubs and restaurants but also on their wider supply chain – including Pembrokeshire’s farmers, fishermen and local producers.

“Hospitality isn’t some faceless industry,” he said. “It’s my team, it’s our local suppliers, it’s the farmers who raise the beef and grow the potatoes, the fishermen who land the lobsters, the families who choose to spend their hard-earned money with us. It’s our town, county and community.”

He said pubs and restaurants could adapt and innovate, “as we always do here”, but warned that rising fixed costs were pushing the sector towards breaking point.

***More costs for businesses is ‘economic suicide’, Dan Mills warned on Tuesday***

‘Driven off a cliff’
“This is bordering on economic suicide for small businesses like mine, and thousands of others who are the backbone of our communities,” he said.

“If people – politicians, decision makers, landlords, councillors – don’t start understanding just how fragile this sector is becoming, the places they love simply won’t be here in a year or two.”

He added that for him the issue was not political but personal: “It’s livelihoods and it’s our community. And right now, it feels like we’re being driven off a cliff.”

Pembrokeshire context
Hospitality is one of the biggest employers in Pembrokeshire, with tourism-related businesses making up a major part of the local economy. Industry groups have warned previously that continued above-inflation wage rises, coupled with VAT pressures and energy costs, risk causing closures over the next two years.

Responding to the Chancellor’s announcement, The Society of Independent Brewers and Associates Chief Executive Andy Slee said cost of living pressures were real, but the burden of implementing wage rises fell hardest on small employers.

“Cost of living pressures are very real for people and we all want to see living standards rise. However, the responsibility of delivering wage increases is most felt by small businesses, including small independent breweries who are already facing significant pressures,” he said.

“We have lost more than 100 breweries in the past year and more tell us they are on the edge. If they close, there won’t be any jobs at all.”

Mr Slee added that the removal of age-based pay bands failed to reflect the additional training and development required for younger workers entering the sector.

“Brewing is a skilled job and we want to encourage more young people to enter the sector, but continuing to close the aged-based pay gap does not take account of the additional training and development that young people need,” he said.

He urged the Chancellor to use tomorrow’s Budget to support the industry by expanding Draught Relief.

“Tomorrow’s Budget is the opportunity for the Chancellor to offset these challenges for breweries by expanding the Draught Relief to 20% or more. This would mean that beer mostly sold in pubs has a lower rate of beer duty, bringing benefits to beer drinkers and small breweries around the country.”

The Treasury said the new rates aim to balance “the needs of workers, the affordability for businesses and the opportunities for employment”.

The minimum wage rise will come into effect in April 2026.

Business

Pembroke Power Station National Grid shutdown power plans

Published

20 hours ago

May 1, 2026

Bruce Sinclair - Local Democracy Reporter

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 lodged with county planners.

In a screening application to Pembrokeshire County Council, RWE Generation UK PLC, through Ove Arup & Partners Ltd, wants 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 does not currently meet this new asset resilience standard, therefore new back-up power, control philosophy and on-site services that support site critical systems enabling the power station to remain ready to operate must be implemented.

“RWE is required to install a new enhanced emergency site auxiliary solution (diesel generators and diesel storage tanks) at the power station for resilience against the failure of the interconnected electricity distribution network into which it is normally connected in order to satisfy the Grid Code requirements by the mandated implementation deadline of December 31, 2026.

“RWE will make operational and fuelling provision, within its new resilience design at Pembroke power station of up to 120 hours, in order to provide capability to a slightly enhanced standard known to be valued by the National Energy System Operator (‘NESO’) in certain emergency network scenarios.”

It says construction is hoped to start in July 2026, lasting approximately nine to 12 months, the main part across the summer months.

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

Business

Pembrokeshire St Brides Castle biomass and solar scheme

Published

23 hours ago

May 1, 2026

Bruce Sinclair - Local Democracy Reporter

PLANS for a green energy scheme at a Pembrokeshire former country house which is now holiday apartments have been given the go-ahead.

In an application to Pembrokeshire Coast National Park, HPB Ltd, through agent Acanthus Holden Architects, sought permission for a biomass boiler plant and installation of 16 rows of solar panels to the south of the tennis courts, St Brides Castle, St Brides, along with the removal of two tennis courts, two polytunnels, two sheds and relocation of a container.

Marloes and St Brides Community Council: Supporting

An officer report recommending approval said: “St Brides Castle. Listed Grade II* is a former country house (now holiday apartments) just south-west of the small settlement of St Brides.

“The house and its listed ancillary buildings stand prominently within a large grade-II-registered park and garden. The development site lies immediately south of the registered asset, outside of its boundary.”

It added: “Although in a sensitive location, the proposed scheme is well-screened, utilising an existing hedged enclosure. The proposed panels do not protrude over the hedge line, the proposed extra planting to the south and west providing further screening. The proposed building, also well-screened, is of traditional design, proportions and materials.”

The application was conditionally approved by park planners.

Business

Welsh business confidence rises as firms buck UK trend

Published

2 days ago

April 30, 2026

Tom Sinclair

Wales records strongest year-on-year growth of any UK nation or region, according to Lloyds Business Barometer

WELSH business confidence rose in April as firms reported growing optimism about the wider UK economy, new figures show.

The latest Business Barometer from Lloyds found that confidence among businesses in Wales rose by eight points to 38% during the month.

That was despite overall UK business confidence falling by 11 points to 44% in April.

The survey found Welsh firms’ confidence in their own trading prospects remained unchanged at 46%, while optimism about the wider economy climbed 16 points to 30%.

When combined, those figures gave Wales a headline confidence reading of 38%, up from 30% in March.

Wales also recorded the largest year-on-year confidence growth of any UK nation or region and was the only area to report both year-on-year and month-on-month growth.

A net balance of 34% of businesses in Wales said they expected to increase staff numbers over the next year, up nine points on the previous month.

Looking ahead, Welsh firms identified investment in their teams as the main target area for growth, with 48% citing training and staff development.

Other priorities included introducing new technology, such as AI or automation, at 42%, and evolving products or services at 40%.

The Business Barometer, which surveys 1,200 businesses each month, has been running since 2002 and is used as an early indicator of UK economic trends.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year.

“UK businesses are resilient and adept at deploying strategies to defend growth in uncertain conditions. Over the past month, we’ve seen them opt for flexibility wherever possible.

“They’re building contingency into their short and medium-term plans, rather than expecting a rapid return to normal. Protecting margins has become more important.

“That means tougher cost scrutiny and a greater focus on balancing growth with profitability.

“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long-term value.”

Nathan Morgan, area director for Wales at Lloyds, said: “Wales is bucking the UK-wide trend when it comes to business confidence, increasing during April against the national trend.

“This confidence is the result of Welsh firms’ ongoing focus on investment to protect their position against future disruption.

“At Lloyds, we’ll continue to nurture this recent momentum of growth by working with businesses across the nation to equip them with the financial tools they need.”

Across the UK, firms’ confidence in their own trading outlook fell six points to 54%, while optimism in the wider economy dropped 17 points to 33%.

The East Midlands was the most confident UK nation or region in April at 53%, followed by London at 51% and the West Midlands at 49%.