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New markets and customer experience top priorities for Welsh businesses in 2026

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WELSH businesses are increasingly looking to new markets and improved customer experience as key routes to recovery in 2026, according to the latest Quarterly Economic Survey from Chambers Wales South East, South West and Mid.

The survey for the final quarter of 2025 paints a challenging picture of trading conditions. Half of respondents (50%) reported a fall in UK sales over the previous three months, alongside declines in orders and advance bookings. The downturn was mirrored overseas, with 48% of businesses saying export sales had decreased, again accompanied by weaker orders.

Against this backdrop, more firms are identifying new markets as an opportunity for recovery. In Q4 2025, 55% of businesses cited new markets as a route to growth, up from 51% in the previous quarter. Interest in new international markets also rose sharply, with 39% selecting this option in Q4, compared with 32% in Q3.

Gus Williams, CEO of Chambers Wales South East, South West and Mid

Looking ahead to 2026, trade and market expansion continue to dominate business thinking. When asked about the biggest opportunities in the year ahead, firms highlighted exporting, accessing new UK markets, and expanding or consolidating their presence overseas.

Almost a third of Welsh businesses (32%) said exporting and importing would be their main focus in 2026. However, the most commonly cited priority was customer and client experience, selected by 59% of respondents as their key area of focus for the year ahead.

Gus Williams, CEO of Chambers Wales South East, South West and Mid, said the findings reflected a difficult end to the year for many firms.

“Our Q4 survey shows just how challenging the trading environment was for Welsh businesses as 2025 came to a close, with falling orders, weaker sales and continued pressure from costs, taxation and inflation,” he said. “Confidence remains fragile, particularly for SMEs.

“One bright spot is that firms are actively looking outward, identifying new markets both within the UK and internationally, and placing a renewed focus on customer and client experience as potential drivers of growth in 2026.

“With nearly seven in ten businesses lacking confidence in the Welsh Government’s ability to support growth, it is vital that policymakers listen to the lived experience of SMEs and respond with action. The private sector wants to collaborate with government, but trust needs to be re-established.”

Business

Major Pembrokeshire farm development back before planners after ‘cooling off’ period

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A PREVIOUSLY backed call against officer recommendations for the relocation of a Pembrokeshire farm diversification scheme which packages and distributes specialist medical equipment across Europe will again be considered by councillors.

At the December meeting of Pembrokeshire County council’s planning committee, members backed a call by Mr Van Der Spoel for the relocation and expansion of an existing farm diversification business into an existing agricultural building at Castle Villa, Hayscastle despite an officer recommendation for refusal.

Back in July a similar application by Mr Van Der Spoel, through agent Harries Planning Design Management, was refused by planning officers.

A supporting statement for that application said the Dutch-born applicant, together with his wife and adult daughter ran the farm diversification business packing specialist medical supplies at their 135-acre sheep farm.

It added: “The business run from this site is FRIO ASTRID EURO Ltd, which has a franchise agreement with FRIO UK. This business has been run from Castle Villa since its incorporation in 1998. The business was initially run from the stable building on the farmyard at Castle Villa.

“The business set-up involves receiving stock from FRIO UK in Wolfscastle, packaging orders and distributing the stock to seven Western Europe countries.”

Wolfscastle-based FRIO produces the world’s first patented insulin cooling wallet which keeps insulin and other temperature-sensitive medicines cool and safe.

The scheme for the business, said to have outgrown its current site, was previously refused by county planners on grounds including a lack of “robust evidence” to prove it couldn’t be sited within a nearby settlement or an allocated employment site, such as Haverfordwest.

Since then, an application seeking to address the reasons for refusal was submitted, and, at the request of local member Cllr Mark Carter, a call for the scheme to be decided by full planning committee rather than delegated to officers was backed at the October meeting of Pembrokeshire County Council’s planning delegation panel.

The latest application is again, after its ‘minded to’ backing at the December meeting, recommended for refusal on similar grounds to previously at the January 13 planning meeting.

It has returned to the January committee for ratification after a ‘cooling off’ period, and, if backed then, will ultimately be decided by full council.

A report for members following the ‘minded to’ approval, warns: “Members should be aware that if they are ‘minded to’ approve the application on the basis of economic benefits and farm diversification, this is a consideration which can be applied to many other existing sites. This would have further consequences for the implementation of policies within the LDP and its delivery.”

It adds that, if it is backed again, it includes a condition, suggested by the agent, that: “Should the farm and business ever be operating by different individuals/companies, the use of this building by FRIO ASTRID must cease and be relocated should further planning permission not be obtained.

“This will be regulated by the submission of documents annually to demonstrate the farm and business remain under ownership by the same individual/company.”

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Drakeford urged to follow England’s lead as Welsh businesses face closures

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A SENIOR Welsh Conservative has urged the Welsh Government to rethink its approach to business rates, warning that rising bills are pushing some firms in west Wales to the brink of closure.

Samuel Kurtz MS has written to the Cabinet Secretary for Finance, Mark Drakeford MS, calling on ministers to consider following England’s apparent change of direction on business rates after reports that the UK Labour Government is preparing to reverse proposed increases south of the border.

In his letter, Mr Kurtz says businesses across Pembrokeshire and west Wales are already feeling the effects of higher rateable values, combined with rising costs and falling footfall. He claims a number of firms closed over the Christmas period, with some owners describing business rate increases as “the straw that broke the camel’s back”.

Mr Kurtz, the Member of the Senedd for Carmarthen West and South Pembrokeshire, said business rates were not experienced as a “technical or neutral exercise” by those affected.

“Businesses experience it as higher bills landing on their doormats at a time when overheads are rising and footfall is falling,” he said. “When we are seeing pubs, cafés and shops closing over Christmas, it is clear that the system is not working for the communities it is supposed to serve.”

He has asked whether the Welsh Labour Government intends to reconsider increases to business rates in light of developments in England, and what action is being taken to support firms facing sharp rises that could render otherwise viable businesses unprofitable.

Mr Kurtz also argues that existing reliefs and protections do not adequately reflect conditions on the ground, particularly for small and medium-sized enterprises that fall just outside eligibility thresholds.

“Warm words and reassurances about fairness do not pay the bills,” he added. “What businesses want to know is whether the Welsh Government is prepared to listen, to act, and to prevent more closures on our high streets and in our town centres.”

In response to growing concern, Mr Kurtz and Paul Davies MS are due to host an online meeting on Monday (Jan 26) at 10:30am for businesses across west Wales. The session will focus on the impact of rising rateable values on hospitality, tourism and town-centre firms, and will give business owners the opportunity to share their experiences directly.

The meeting forms part of wider efforts to press for longer-term reform of the non-domestic rates system in Wales, including calls for a freeze or further reduction in the multiplier, broader eligibility for relief, and greater recognition of the pressures facing rural and coastal economies.

Responding to the concerns, a Welsh Government spokesperson said business rates in Wales are devolved and that ministers have already provided targeted support to smaller firms.

They said: “We recognise the pressures facing businesses and have invested more than £1 billion in business rates support since the pandemic. Wales continues to offer one of the most generous packages of relief in the UK, with the majority of small businesses paying no business rates at all.

“We keep the non-domestic rates system under review and will continue to engage with businesses and representative bodies to ensure support is targeted where it is needed most.”

Mr Kurtz, however, warned that without a change of course, further closures were inevitable.

“Unless the Welsh Government acts,” he said, “we will continue to see businesses close, jobs lost and communities hollowed out.”

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Business

Business rates pressure on Welsh firms raised with Welsh Government

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MS seeks clarity after reports Labour may reverse increases in England

A PEMBROKESHIRE Senedd Member has written to the Welsh Government seeking clarity over business rates in Wales following reports that the UK Labour Government is preparing to reverse proposed increases in England.

Samuel Kurtz MS, the Member for Carmarthen West and South Pembrokeshire, has contacted the Cabinet Secretary for Finance after it emerged that Labour ministers in Westminster may reconsider planned changes to business rates amid strong opposition from hospitality and high-street businesses.

Mr Kurtz said he had spoken to a number of local businesses across Pembrokeshire and west Wales and warned that recent increases in rateable values, combined with rising operating costs, were placing significant pressure on otherwise viable firms.

He said several businesses had closed over the Christmas period, with owners citing extremely challenging economic conditions following successive UK Labour Government budgets. For some, he said, increases in business rates had been described as “the straw that broke the camel’s back”.

In his letter, Mr Kurtz asked whether the Welsh Government intends to follow any change of direction taken in England and what support is currently available to Welsh businesses facing sharp increases in their rates bills.

He also sought clarification on what consideration is being given to cases where higher business rates could place firms at risk of closure.

The Welsh Government has previously stated that business rates revaluation is intended to reflect changes in rental values rather than raise additional revenue, and that transitional relief and targeted support schemes are in place to help businesses adjust.

Mr Kurtz said further engagement with local firms was needed to understand the real-world impact of the changes.

Alongside Paul Davies MS, he is hosting an online meeting for local businesses on Monday, January 26, at 10:30am. The session will aim to explain what changes are taking place and give business owners the opportunity to raise concerns directly.

Businesses affected by changes to business rates have been invited to contact Mr Kurtz’s office for further information.

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