Business
Innovation slump raises concern for Welsh businesses
THE SHARE of UK businesses classed as “innovation-active” has fallen sharply over the past decade, raising concerns about the ability of firms in Wales and across the UK to compete, grow and adapt.
New figures show that only 34% of UK businesses were innovation-active between 2022 and 2024, compared with 53% ten years earlier — a fall of 19 percentage points.
The National Centre for Universities and Business (NCUB) said the decline should worry policymakers, universities and employers, particularly at a time when productivity, investment and economic growth remain under pressure.
For Wales, the figures are especially relevant. Many Welsh businesses are small or medium-sized firms operating in rural, coastal or post-industrial communities, where access to finance, skills, research partnerships and new technology can be more limited than in larger urban centres.
The warning comes despite repeated political promises to make the UK a science and technology leader. NCUB says the problem is not a lack of research talent, but a failure to turn ideas into commercial activity across the wider economy.
Rosalind Gill, Director of Policy at NCUB, said: “A shrinking base of innovative businesses is a serious concern. Innovation is not confined to a handful of frontier sectors or high-growth companies. It depends on businesses across the economy investing, adapting and bringing new ideas, products and services to market.
“The UK has many strengths. We continue to produce world-class research, generate promising discoveries and collaborate effectively across institutions. Innovation is not created by research alone, however.
“It depends on businesses investing in R&D and innovation, shaping demand, adopting new technologies and working with the research base to solve real-world challenges.”
Ms Gill said the Government’s focus on growth, innovation, reforms to UK Research and Innovation, and a new Industrial Strategy were welcome, but businesses needed clearer long-term priorities and simpler routes from research to market.
She added: “When we speak to business leaders, they consistently highlight the importance of clearer long-term priorities, stronger pathways from research to market, reduced complexity across the research and innovation system, and greater confidence that the UK is a place where innovative firms can start, scale and succeed.”
The NCUB said the challenge now is to ensure that research strengths translate into business investment, commercial activity and economic impact.
For Wales, that means ensuring universities, colleges, manufacturers, farming businesses, tourism operators, renewable energy firms and digital start-ups are not left behind as the UK attempts to rebuild its innovation economy.
Business
St Davids family-friendly coffee bar approved
PLANS to change a former hairdressing salon in Pembrokeshire’s only city to a family-friendly coffee bar have been approved by the national park.
In an application to Pembrokeshire Coast National Park, Gerallt Nash sought permission for a change of use of 26 High Street, St Davids from a hairdressing salon to a family friendly coffee bar and children’s playroom.
The first floor, formerly used as accommodation of a tenant, would be used as an office and storage of business.
A supporting statement said: “It is proposed to open a family-friendly coffee bar with a children’s playroom on ground floor. It is not intended to cook food on the premises, therefore there will be no requirement for an extractor system.
“Other than small scale repairs to part of one floor, and the installation of a sink and serving counter in the inner room (plumbing and electrics are already in place since its last use as a salon) the main work will be the redecoration of surfaces and ceilings, the provision of new light fittings and laying of new floor coverings.
“This part of High Street has been identified as a ‘commercial’ zone by PCNPA. Existing businesses close to No 26 include outdoor and surfing outlets; restaurants; clothes shops; holiday accommodation; ice cream parlour; fish and chips outlet; delicatessen and craft shops.
“The current proposal would fill a gap in the market, as most food outlets do not open until after 11am or 12pm, or only during the evenings in some cases. It would also provide somewhere for [young] families to go to unwind whilst their children can relax in the playroom.”
The scheme was supported by St Davids City Council but one representation from a member of the public raised concerns about potential noise, smells and risk of vermin from waste storage on site.
An officer report said the county council’s public protection team has been consulted and has no objections to raise, adding the application states there is no intention to cook on the premises; the opening hours listed as 8am-6pm, Monday to Friday, and 8am-7pm on Saturdays.
In recommending approval, it said: “There are no concerns in relation to significant impacts upon amenity, subject to a condition relating to opening hours, and it is not considered that the proposal would have an impact upon the character or appearance of the St David’s Conservation Area.”
The application was conditionally approved.
Business
Port appoints two new directors as energy and regeneration projects advance
Sustainability expert Rebecca Heaton and regeneration specialist Owen Davies will join the board later this year
THE PORT OF MILFORD HAVEN has appointed two new Non-Executive Directors as it prepares for a period of major investment in renewable energy, the Celtic Freeport and the wider economy of south-west Wales.
Dr Rebecca Heaton and Owen Davies will join the Port’s board later this year, bringing extensive experience in sustainability, energy transition, regional development and regeneration.
Dr Heaton has worked in sustainability and climate policy for more than 25 years, holding senior positions with organisations including Lloyds Banking Group, Drax Group, OVO Energy, Shell and BP.
Her experience includes governance, commercial strategy, risk management and stakeholder engagement. She has also served on the Climate Change Committee and the Natural Environment Research Council.
Dr Heaton said the Port occupied a central position in Wales’s energy system and had an opportunity to help deliver long-term economic and environmental benefits.
She said: “Having lived in Wales for more than 30 years, I have seen the vital role that infrastructure, industry and energy play in supporting communities and creating economic opportunity.
“The Port sits at the heart of Wales’s energy system and has a unique opportunity to help shape a stable and sustainable future.”
Mr Davies joins the board with more than 30 years’ experience in regional development, town planning and placemaking.
A Chartered Town Planner and Fellow of the Institute of Place Management, he has advised the Welsh Government on regional economic frameworks, town centre regeneration and community engagement.
He has also worked as a UK Government High Streets Task Force expert and has been involved in regeneration and master-planning projects in waterfront and coastal communities, including Pembrokeshire.
Mr Davies currently runs his own consultancy and holds several advisory and governance positions, including with the Canal & River Trust in Wales and the Plas Gunter Mansion Trust.
He said: “The Port occupies a uniquely important position within Wales as a major economic driver, a nationally significant energy gateway and the custodian of one of our most important natural assets.
“Pembrokeshire and south-west Wales are entering a period of significant opportunity, with investment in renewable energy, the Celtic Freeport and wider economic development helping to shape the region’s future.”
The appointments come as Debra Bowen Rees and Erica Cassin complete their terms as Non-Executive Directors.
Dr Sian George, Chair of the Port of Milford Haven, welcomed the new members and thanked the departing directors for their service.
She said: “Rebecca and Owen bring outstanding experience and expertise that will further strengthen the breadth of skills and perspectives around our board table.
“The Port has a unique responsibility as a Trust Port to balance commercial success with our role as custodians of the Milford Haven Waterway and as a key contributor to regional prosperity.”
Dr George said both new directors shared the Port’s commitment to sustainable growth and long-term investment.
She added: “I would also like to express my sincere thanks to Debra Bowen Rees and Erica Cassin as they complete their terms on the board.
“Both have made a significant contribution to the Port during a period of considerable progress and transformation.”
The Port of Milford Haven is Wales’s busiest port and handles around 20% of Britain’s seaborne oil and gas trade. It also owns and operates Pembroke Port and Milford Waterfront, with its activities supporting more than 4,000 jobs in and around Pembrokeshire.
Business
Fears for Welsh steel plant after India handed expanded import quota
Union warns UK trade concession could threaten Llanwern steelworks despite government promises to protect domestic production
FEARS have been raised for the future of one of Wales’s most strategically important steel plants after the UK Government granted India a significantly larger quota for tariff-free galvanised steel imports.
Union leaders and industry figures have warned that the decision could undermine Tata Steel UK’s Llanwern works near Newport, which produces around 600,000 tonnes of galvanised steel each year.
The plant supplies almost half of total UK demand for the material, which is widely used by the automotive and construction industries.
The warning comes just months after ministers unveiled a new strategy intended to protect British steelmaking from cheap overseas competition and increase the proportion of steel used in the UK that is produced domestically.
However, details of the new import arrangements show that India has been allocated a tariff-free quota of 125,000 tonnes for metallic-coated steel, commonly referred to within the industry as Category 4 steel.
India exported around 43,000 tonnes of the product to Britain last year, meaning the new allowance is almost three times that volume.
Trade deal concession
The Financial Times reported that the quota was increased during last-minute negotiations to secure the implementation of the UK-India free trade agreement.
According to the report, India had objected to proposals to reduce its steel allocations and warned that the trade agreement could be delayed unless its concerns were addressed.
The deal came into force on Wednesday, July 15, and has been promoted by ministers as a major economic opportunity for British exporters.
The UK Government estimates that the agreement could eventually increase bilateral trade by £25.5 billion a year and add £4.8 billion annually to the economy.
It includes lower Indian tariffs on products such as British whisky and vehicles, while reducing UK duties on Indian clothing, footwear and some food products.
However, steelworkers now fear that the price of securing those wider benefits could be paid by Welsh industry.
Threat to Llanwern
Llanwern specialises in producing high-quality galvanised steel, which is coated with zinc to protect it from corrosion.
Its products are used in vehicles, buildings and infrastructure, making the Newport site an important part of both the Welsh economy and Britain’s manufacturing supply chain.
Alasdair McDiarmid, assistant general secretary of the steelworkers’ union Community, said the import allowances could threaten the sustainability of the plant.
He described Llanwern as a crucial strategic facility supplying high-quality steel to the automotive and construction sectors.
The union said workers could already see imported steel coils accumulating at Newport docks and questioned why Llanwern appeared to have received less protection than other areas of the British steel industry.
No closure or job losses have been announced, but the warning will cause renewed concern in communities that have already experienced years of uncertainty surrounding the future of steelmaking in Wales.
Wider quotas also increased
The decision relating to India had wider consequences because international trading rules require comparable exporting countries to be treated equally.
South Korea has reportedly been allocated a Category 4 quota of 100,000 tonnes, while Vietnam has received an allowance of 175,000 tonnes.
Industry representatives are particularly concerned about material entering from Vietnam, amid claims that the country processes steel originating from China, where excess production has contributed to a global fall in prices.
The combined allowances could expose Llanwern to significantly more overseas competition in a market it currently plays a leading role in supplying.
One industry insider estimated that the new arrangements could cost British steel producers hundreds of millions of pounds in lost revenue.
Policy described as ‘baffling’
The decision appears to contrast sharply with the UK Government’s broader approach to steel imports.
Under measures that came into force on July 1, overall tariff-free steel import quotas were reduced by 51 per cent. Imports exceeding the allocated amounts are now subject to a 50 per cent tariff.
Ministers said the protections were required because of global overcapacity, which has allowed large volumes of cheaper steel to enter international markets and placed British producers under intense pressure.
UK crude steel production has fallen by more than half over the past decade, while high energy prices and ageing industrial infrastructure have further weakened the sector’s competitiveness.
Peter Brennan, director of trade at industry body UK Steel, said the government had taken the bold action required across most steel categories.
However, he described the effective liberalisation of Category 4 imports from countries outside the European Union as baffling.
Tata Steel UK has also expressed concern that the quotas for metallic-coated products remain too high and do not properly reflect conditions within the British market.
The company said effective trade protections were essential to maintaining domestic production, investment and commercially viable downstream operations.
Welsh steel under pressure
The latest dispute comes during a period of major change for the steel industry in Wales.
Traditional blast furnace production at Port Talbot has ended as Tata Steel develops a new electric arc furnace, supported by £500 million from the UK Government.
That transition resulted in the loss of thousands of jobs and left the future of the wider Welsh steel network dependent on the commercial success of remaining and modernised operations.
Llanwern is one of the most valuable downstream facilities in that network, producing finished steel for customers in sectors where reliability and quality are critical.
Critics argue that allowing additional volumes of competing galvanised steel into the country could weaken the business case for continued production and investment at the site.
They also question how the decision fits with the government’s stated ambition to rebuild industrial capacity, protect strategically important industries and reduce Britain’s dependence on overseas suppliers.
Government defends arrangements
The UK Government said the steel measure was intended to strike a balance between protecting domestic production and ensuring businesses had access to secure supplies.
A spokesperson said the final quotas followed extensive consultation with industry and promised that the arrangements would be reviewed after 12 months.
However, unions are likely to demand action well before that review if increased imports begin to affect orders or production at Llanwern.
The controversy leaves ministers facing difficult questions over whether the interests of Welsh steelworkers were sacrificed to secure a wider international trade agreement.
For communities across industrial south Wales, the concern is that another strategically important plant could be left exposed after years of promises that domestic steel production would finally receive stronger protection.
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