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Concern as business confidence falls sharply in Wales

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FIRMS REPORT WEAKER OUTLOOK DESPITE UK-WIDE RISE

BUSINESS confidence in Wales fell sharply in May, despite an improvement in sentiment across the UK as a whole, according to the latest Business Barometer from Lloyds.

The survey found that confidence among Welsh firms dropped by 15 points during the month to 23%, down from 38% in April.

Companies reported weaker confidence in their own trading prospects, which fell by 11 points to 35%. Optimism in the wider economy also declined, dropping by 19 points to 11%.

The figures contrast with the UK-wide picture, where overall business confidence rose by three points in May to 47%.

Lloyds said Wales has recorded an average confidence reading of 42% over the past year. Its highest figure during that period was 76% in July 2025, while the lowest was 17% in November.

Despite the fall, Welsh businesses are still looking to invest over the next six months. The most common priority was investing in staff, including training, cited by 45% of firms. This was followed by sustainability measures at 38%, and new technology such as AI and automation at 33%.

Nathan Morgan, Area Director for Wales at Lloyds, said: “Confidence may have fallen this month, but with summer drawing near, many businesses across Wales will be about to enter their peak season.

“They’re doing so with clear priorities to invest in their teams, new technology or sustainability measures, and we’ll be there to support their ambitions.”

Across the UK, firms’ trading outlook rose by four points to 58%, while optimism in the economy increased by two points to 35%.

Lloyds said 66% of UK businesses expect stronger output over the year ahead, while 8% expect activity to weaken. The main concerns for firms expecting a fall in activity were economic uncertainty, higher cost pressures and weaker customer demand.

Business confidence rose in seven of the twelve UK regions and nations in May, while falling in four. Northern Ireland recorded notable gains, while the North East and West Midlands were among the most confident regions.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Business confidence edged up modestly in May, suggesting firms are beginning to steady after April’s decline.

“This month, confidence levels from businesses in the North East particularly stand out. It’s also reassuring to see that increased confidence from the construction sector has brought them more in line with their retail, services and manufacturing counterparts.”

The Lloyds Business Barometer surveys 1,200 businesses each month and has been running since 2002. The May survey was carried out by Ipsos between April 30 and May 18, and included 48 businesses in Wales.

 

Business

Call for Hildebrand to become short-term lets to reflect changing tourism environment

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A CALL to allow a Pembrokeshire seaside hotel to become short-term holiday let accommodation to ensure its long-term viability in a changing tourism sector has been submitted to the national park.

In an application to Pembrokeshire Coast National Park, Abergavenny-based Kyle Williams, seeks permission for a change of use of The Hildebrand Hotel, 29 Victoria Street, just off Tenby’s Esplanade seafront, from a traditional hotel to a short-term holiday letting operation.

A supporting statement accompanying the application says the scheme seeks to “secure the continued viable use of the property through its operation as professionally managed holiday accommodation, providing high-quality visitor accommodation within the established tourism destination of Tenby”.

It adds: “The Hildebrand Hotel is an established visitor accommodation property located within Tenby, Pembrokeshire, one of Wales’ premier coastal tourism destinations. The property has historically operated as hotel accommodation and occupies a sustainable location within walking distance of local services, beaches, restaurants, public transport facilities and tourism attractions.

“The building is well suited to visitor accommodation use and benefits from existing infrastructure, guest facilities and accommodation layouts that support continued tourism-related occupation.”

It says no significant external alterations are proposed, adding the “character, appearance and scale of the building will remain unchanged”.

“The accommodation will be let on a short-term basis to visitors and tourists, supporting the local visitor economy whilst ensuring the building remains occupied, maintained and economically viable.”

It adds: “The proposed use will ensure the continued occupation and maintenance of the building. The hospitality sector has experienced significant operational challenges in recent years, including staffing pressures, increasing energy costs and changing visitor preferences. The proposed use offers a flexible operational model capable of maintaining the long-term viability of the property.”

It concludes: “The proposal will retain the building within the tourism sector, support the local economy, preserve the ongoing use of an established visitor accommodation property and ensure the long-term viability of the site.

“No significant external alterations are proposed, and the development is not expected to result in unacceptable impacts upon neighbouring amenity, highway safety or the character of the area.”

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

 

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Business

Expansion of facilities at award-winning Cresselly Arms approved

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PLANS to expand facilities at a popular beauty spot award-winning Pembrokeshire pub, in part using a former public toilet, have been approved.

In an application to Pembrokeshire Coast National Park, Lloyd James C/O Owen & Owen Ltd for Cresselly Estate, through agent Hayston Developments & Planning Ltd, sought permission to upgrade an existing food outlet with the conversion and extension of a former public toilet block to a bespoke kitchen, store and staff toilet, new covered seating area and external bar container unit and associated works, at The Cresselly Arms, Cresswell Quay.

The Grade-II-listed Cresselly Arms originated as an 18th-century dwelling and was a public house by at least the mid-19th century.

In more recent years, the pub under landlord Steve Adams won the CAMRA (Campaign for Real Ale) pub of the year award for the whole of Wales in 2024, having previously been named the best in Pembrokeshire.

A supporting statement said the former toilet block closed some two years ago and is now in the applicant’s ownership, having previously been leased by the county council; the toilet closing after fears of a leaking ‘sealed’ cesspit.

It says nearby listed building the Cresselly Arms “has been purveying a variety of drinks for over 200 years together with a limited range of snacks,” adding: “Whilst the number of customers will have varied over the years, at times when the local Hunt meets at the Cresselly Arms large crowds and their vehicles congregate in the area.”

It went on to say: “Over recent years the Inn has stationed mobile units associated with the preparation and enjoyment of food within its curtilage and this proposal is to improve the quality of the presentation of food and refreshments, including making use of the redundant toilet block to the north.”

It added: “Whilst the proposal would introduce new uses onto the site it is considered that these activities are ancillary to the operation of the long established Cresselly Arms and for the most part take place within the curtilage of the inn.”

The application was supported by local community council Jeffreyston, but it noted concerns regarding parking arrangements and the potential for increased vehicle movements, with one member for the public raising concerns about “fast food outlets in a historical area of natural beauty”.

An officer report recommending approval said: “Revisions to some detailed elements of the scheme have been received during the course of the application. The amended proposal is considered to represent a sympathetic enhancement of an established hospitality business which supports the visitor economy whilst respecting the historic character and appearance of Cresswell Quay.”

It said the pub had historically seen temporary barbecue and catering facilities occupying the quay area, the proposal seeking to “rationalise and formalise these activities within the established ancillary yard associated with the Cresselly Arms,” adding: “In heritage and placemaking terms this is considered a positive outcome.”

It went on to say, on highways issues, the proposal sought to improve facilities rather “than significantly expand its capacity or introduce a new use,” and was not considered it would “generate a level of traffic that would result in a severe impact on the local highway network or existing parking arrangements.”

The application was conditionally approved by park planners.

 

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Business

Tattoo artist ejects convicted child sex offender from Carmarthen studio

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A CARMARTHEN tattoo artist has said she stopped a tattoo session and asked a customer to leave after he allegedly disclosed his previous conviction for child sex offences.

Ffion Emma, who works from Mythical Ink in Queen Street, Carmarthen, posted online that the man had appeared to be “a normal human being” before opening up about his past during the appointment.

Kicked out of shop: Gavin Evans

She said he told her he had been in prison and admitted he had been found with indecent images of children.

The tattoo artist said she immediately stopped the session and told him to leave the studio.

Convicted in 2019

The man was named online as Gavin Evans, formerly of Glanamman.

Court reports from 2019 show Evans, then a Tesco worker, was jailed after grooming a vulnerable young girl online and admitting child sex offences.

He appeared at Swansea Crown Court on March 29, 2019, where he was sentenced for offences including making indecent images of children.

The case involved a vulnerable young teenager who had been groomed online.

Studio stance

In her post, Ffion said Evans was “not welcome” at the studio and made clear that anyone convicted of similar offences would not be accepted as a customer.

The post attracted a large reaction online, with many people praising her decision to end the appointment.

Some comments went further, calling for violent or humiliating treatment of sex offenders, but The Herald is not repeating those remarks.

Businesses are generally entitled to refuse service, provided the refusal is not based on a protected characteristic under equality law.

 

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