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Business

Small business confidence remains low as costs rise and jobs are put on hold

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Survey shows SMEs still cautious on hiring and investment, despite a modest lift in new orders

UK SMALL firms are still feeling gloomy about the economy, with confidence stuck near historic lows as weak growth and rising costs continue to bite, according to a quarterly survey by ACCA and the Institute of Management Accountants.

The UK edition of the Global Economic Conditions Survey (GECS) found confidence among small and medium-sized businesses dipped slightly in the final quarter of 2025, after a sharper fall in the previous quarter. The findings suggest many SMEs are still struggling to shake off the depressed mood that set in at the end of 2024.

Measures tracking investment and staffing also point to caution. Only a small number of respondents said their businesses – or their clients – had increased spending on capital projects over the past three months, while a higher-than-normal proportion reported cutting back.

On employment, the survey recorded a notable share of businesses reducing headcount or pausing recruitment, with relatively few saying they were hiring or restarting recruitment.

There was, however, a small sign of improvement in future demand. The survey’s forward-looking New Orders Index rose in Q4. While still weak by long-term standards, it was reported to be well above the low point seen during the COVID-19 pandemic – suggesting the underlying picture may not be as bleak as other indicators imply, and that some firms may be positioning themselves for better trading conditions.

Lloyd Powell, head of ACCA Cymru/Wales, said confidence remains “fragile,” arguing that businesses have seen little recovery since a sharp drop following the 2024 Budget. He added that the decline after the 2025 Budget was smaller, but said the impact on SMEs and the wider economy remained significant.

Powell said the modest improvement in new orders could indicate some firms are starting to consider investment again as they spot opportunities emerging.

Cost pressures, meanwhile, remain a major concern. More than four in five respondents reported higher operating costs during Q4, and early warning signs of corporate stress – including late payment issues and worries about customers or suppliers going out of business – stayed high compared with historic levels.

Jonathan Ashworth, ACCA’s chief economist, said the Q4 indicators continue to paint a “very downbeat” picture for UK SMEs, with confidence still struggling to recover from the lows seen at the end of 2024. He warned that 2026 is likely to remain difficult, citing sluggish UK growth and global uncertainty.

The survey notes that further interest rate cuts could ease some pressure on businesses, though ongoing domestic cost inflation suggests the Bank of England may have to approach any reductions carefully.

 

Business

Little Haven garden shed holiday let appeal dismissed

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AN APPEAL against a national park refusal of a scheme to convert a garden shed to a holiday let at a Pembrokeshire seaside village with the highest rates of second homes and holiday lets in the county has been dismissed.

Last April, in an application before Pembrokeshire Coast National Park, Shabnam Banihashem of 19a Wesley Road, Little Haven sought permission to convert a rear garden shed, already replace with a summerhouse, to holiday let accommodation.

Local community council The Havens had objected to the scheme, saying it has concerns over parking and highway access arrangements, and concerns about impact on Highway traffic safety-related matters.

An officer report recommending refusal said: “The Authority has concerns in connection with the proposal due to the impact upon the residential amenity of the host dwelling, and its immediate neighbours, the impact upon the character of the Little Haven Conservation Area due to the potential for additional traffic, and due to the proposed summerhouse being unsuitable in terms of size for the use of holiday letting.”

The application was refused on grounds including “introducing a significantly greater level of noise and disturbance than the current situation, to the detriment of the residential amenity of neighbouring properties,” and impact on the conservation area.

Since that refusal, the applicant appealed the decision with Planning and Environment Decisions Wales (PEDW); a site visit by the inspector taking place on January 28 of this year.

The main areas covered in the appeal were the effect of the proposal on the living conditions of neighbouring occupiers and future occupiers of the proposal, with regard to noise and privacy, and the character of the Little Haven Conservation Area, the inspector’s report said.

In dismissing the appeal, she said: “I have found the proposal would be acceptable with regard to its effect on the Conservation Area.

“However, this is outweighed by the harm that would be caused to the living conditions of the occupiers of the host dwelling, as well as occupiers of the proposal, with regard to privacy.”

A previous national park report, based on the second homes council tax premium payable to Pembrokeshire County Council, has said nearly two-thirds of properties in Little Haven are either second homes or holiday lets.

At the time of the 2023 report, the highest rates of seconds homes or holiday lets in the national park were: Nolton Haven 60 per cent, and Little Haven 62.96 per cent.

 

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Business

Templeton Pembrokeshire fuel business home for security call

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A CALL for a home to provide security for a well-established Pembrokeshire fuel distribution business and a proposed museum, which has hopes of developing further business units, has been submitted to county planners.

In an application to Pembrokeshire County Council, Dan Thomas, of KP Thomas & Son, through agent Cynllunio RW Planning Ltd, seeks permission for the erection of dwelling for management of on-site enterprises and associated works at The Fuel Depot, Templeton.

A supporting statement says family-run K P Thomas and Son, situated on a site close to a former airfield and former nuclear bunker, has been operating for 39 years and has “grown into a major local employer, currently providing work for 32 staff,” supplying “over 45,000 customers annually and distributes 30 million litres of fuel, 8,000 tonnes of LPG gas and 500 tonnes of coal every year,” and was “formally designated as an essential key service provider during the Covid-19 pandemic”.

A statement from Dan Thomas said he had moved some 15 minutes away to Narberth when he became a homeowner some five years ago, but “it quickly became clear that this arrangement was not workable due to the urgent and unpredictable nature of our operations”.

He said any detailed several incidents on-site which required an immediate on-site response, “the travel time from Narberth frequently caused delays, operational disruptions, and increased environmental risks”.

He said even living in nearby Templeton could cause difficulties for any emergency call-outs, which often occur in the early hours; the 24-7 business handling fuel distribution and transport logistics throughout Pembrokeshire and beyond, with his own working hours often running from 5am to as late as 8pm.

“Consequently, I had no choice but to relocate to the family home adjacent to the depot to ensure the continued safe and efficient operation of the business. This remains a temporary measure, and a permanent on-site dwelling is therefore essential to ensure long-term operational efficiency, safety, and compliance.”

He added: “As part of our fuel distribution operations, we regularly receive bulk fuel deliveries overnight. In the event of a spill, leak, or fault, an immediate response is vital to prevent environmental contamination and ensure public safety. Currently, if such an incident were to occur, I would need to travel from my home to the site before taking any action.”

As well as the existing facilities, it is hoped to construct several leasable commercial units on the site, with prospective tenants wanting permanent on-site security and immediate site supervision, Mr Thomas said.

His statement also says his grandfather “had begun developing a museum as a business but unfortunately passed away before its completion,” adding: “The value of the museum content alone, excluding the building, which includes a kitchen and café facility, was appraised at just over £12.5 million.”

He finished: “The proposed on-site dwelling is not a matter of convenience but one of operational necessity, safety, and environmental protection.”

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

 

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Business

Pembroke Power Station marks 10,000th turbine start

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Milestone highlights growing importance of flexible gas generation as renewables expand

PEMBROKE POWER STATION has reached a major operational milestone after recording the 10,000th start of its combined cycle gas turbine (CCGT) units — underlining the plant’s continuing role in keeping the UK electricity system stable as renewable energy increases.

The RWE-owned power station, which opened in 2011, was originally designed to run almost continuously. However, as wind and solar generation have grown, the facility now operates far more flexibly, starting and stopping units to respond to changes in electricity demand and renewable output.

All five generating units now operate across multi-shift patterns, helping to balance the grid when renewable supply drops or when rapid increases in power are required.

Engineers at the site have also significantly improved performance over time. Start-up times have been reduced from around 70 minutes to just 41 minutes, allowing the station to respond more quickly to fluctuations in supply and demand. The units have also completed multiple major maintenance cycles while maintaining high reliability, including during the Covid-19 pandemic.

Gas-fired power remains a key part of Britain’s energy mix, providing what industry experts describe as “firm and flexible” generation capacity. While renewable sources are expected to supply the majority of electricity in the future, gas stations continue to provide backup and stability when renewable output is low or unpredictable.

Roland Long, RWE Pembroke Power Station Manager, said: “Reaching 10,000 unit starts is a proud moment for everyone at Pembroke. It highlights not just our operational capability but the vital contribution that flexible gas generation makes to the UK’s energy system.

“As the grid becomes increasingly driven by renewables, our ability to start quickly and run when needed ensures security of supply and reinforces Pembroke’s role as a dependable partner in the nation’s energy transition.”

The milestone reinforces the ongoing importance of flexible gas generation in supporting homes and businesses across the UK with secure and reliable electricity, particularly as the country continues to move towards lower-carbon energy sources.

 

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