Business
Welsh Government confirms vacant land tax plan
THE WELSH GOVERNMENT will put forward the vacant land tax idea to test the Wales Act 2014 powers, Cabinet Secretary for Finance Mark Drakeford has announced.
The Cabinet Secretary will set out the next steps for proposing a new Welsh tax as part of the tax policy work plan for 2018.
Since announcing a shortlist of 4 new tax ideas alongside the draft Budget in October, the Welsh Government has been examining the case for each of these.
The 4 tax ideas were: a social care levy, a vacant land tax, a disposable plastics tax and a tourism tax.
Although the vacant land tax idea will be used to test the Wales Act powers, work will also continue on each of the other 3 tax ideas.
The decision to take forward the vacant land tax idea follows engagement with stakeholder organisations, the public and across government.
A vacant land tax has been chosen both because it could help to incentivise more timely development, and because it could help prevent dereliction and aid regeneration.
Professor Drakeford said: “Housing is a priority for the Welsh Government. A tax on vacant land could prevent the practice of land banking and land not being developed within the expected timescales.
“The Republic of Ireland vacant sites levy provides a useful starting point for how a vacant land tax could work in Wales.
“The existing model in the Republic of Ireland and the relatively narrow focus of the tax make this the most suitable of the 4 shortlisted ideas to test the Wales Act.”
The Irish measure, announced in their government’s 2018 Budget, will mean that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3% levy in 2019 and then become liable to the increased rate of 7% from 1 January 2019.
If land owners continue to hoard land in 2019, they will pay 7% in 2020.
When the Welsh Government announced it was considering such a measure in October 2017, before the UK Government said it was considering a similar plan, the House Builders’ Federation raised the spectre of developers decamping en masse to England with their large projects. That threat, such as it was, has receded but the Federation of Master Builders is still concerned.
Speaking to BBC Wales, Ifan Glyn of FMB Cymru said: “If there’s a tax that’s introduced that can focus solely on land banking for financial reasons to maximise profits, we would absolutely agree with that.
“Our issue is we don’t see how this tax can differentiate between land that’s been banked for financial reasons and land that isn’t being developed or stalling for reasons outside the developer’s control.”
A further wrinkle in the system was identified by Dr John McCartney, Director of Research at Savills Ireland.
Speaking about what were then only proposals by the Irish Government to impose the vacant site levy, he said that increasing the vacant site levy to 7% could amplify “boom-and-bust cycles” in the construction sector.
Dr McCartney said that land is a raw material for developers and it is natural for them to carry a stock of development land.
“No developer will now carry a land-bank in a slow market. This means when a recovery follows developers will spend the early years on site assembly rather than the house building they could and should be doing,” he explained.
Responding to the announcement, the Welsh Conservative Shadow Finance spokesperson, Nick Ramsay AM said: “From the outset, Welsh Conservatives have opposed the ludicrous proposal for a tourism tax in Wales, one which would cause serious harm to businesses across the country.
“While we are pleased the Welsh Government has listened to us and decided against taking this idea forward, once the mechanism has been tested, we would not expect the Labour Government to return to the table with this proposal, one which has been widely criticised by the industry.
“Our vigorous campaign will continue until Labour’s Finance Secretary consigns this ludicrous proposal to where it belongs: the bin.”
Commenting on the decision to bring forward a potential vacant land tax, Mr Ramsay added: “On the surface, we welcome the fact that, as in England, the Welsh Government is exploring the viability of a vacant land tax but we await the full details of this proposal from the Finance Secretary.
“However, an important distinction must be made between land held for legitimate technical reasons such as detailed planning or a lack of skills and materials, and land which is held for purely commercial speculation.
“Speculation distorts the main purpose of releasing land for much needed development and it will be vitally important to fully consult with the sector to ensure the right balance is struck.”
Business
Pembroke Dock restaurant to close on Christmas Day after £23,000 rates rise
A PEMBROKE DOCK restaurant owner has said she is “devastated” after being forced to close her business on Christmas Day following a projected business rates increase of more than £23,000.
Randalls Restaurant, which operates from The Dolphin Hotel in Pembroke Dock, has been run by Natalie Newton and her family since 1999. Ms Newton took over the business in 2018 after her parents retired, overseeing a major transformation from a traditional pub and bed and breakfast into a hotel and restaurant.

For the past seven years, she and her fiancée, chef Ben Randall, have worked to build the restaurant’s reputation, offering breakfasts, lunches and evening meals using locally sourced produce where possible, as well as hosting special events including Christmas parties, buffets, afternoon teas and themed dining nights.
However, Ms Newton said she was left with no option but to close the restaurant after discovering that its business rates are expected to rise from around £10,000 to £33,000 from next year.
She said: “It’s a great shame. My father is absolutely devastated – this was his legacy. I took it over and built a really successful restaurant, and now it feels like it’s been taken away.”
Ms Newton said she checked her projected rates bill using the Government’s online calculator and was shocked to see that it had more than trebled. With quieter trading months expected early in the year, she said the increase was simply not sustainable.
“January, February and March are quieter months,” she said. “From April I’d need to find an extra £2,750 every month. Even if I managed it, I’d be working for nothing, and I’m worried I wouldn’t be able to pay my bills and would end up in the red.”
She added: “I’ve made the decision to close straight after Christmas Day. It’s drastic, but I have to keep my head above water and protect everything my parents worked for.”
Ms Newton said the decision had not only affected her family but also the restaurant’s eleven members of staff.
“I’ve invested everything back into this business,” she said. “Every penny the restaurant has made has gone straight back into it. I’ve worked every day, nights and weekends, and I haven’t had Christmas at home for seven years.
“For the last six months I’d look around the restaurant when it was busy and think how lucky we were. People were happy, good food was going out. Now it feels like it’s all been snatched away.”
The Herald has reported extensively on growing concern among Pembrokeshire businesses over sharp increases in business rates following updated valuations, with several town centre traders warning that rising fixed costs are pushing otherwise viable businesses to the brink.
Ms Newton said she intends to focus on running the hotel after Christmas but will miss the restaurant and its customers.
“I’m going to miss everyone,” she said. “I’ve loved building relationships with customers over the years. I just want to thank everyone who believed in Ben and me and supported us.”
Business rates in Wales are due to be updated from April 1, 2026, to reflect current property values. The Welsh Government has said that while many businesses will see their bills fall, others will face increases.
It has announced that any business facing an increase of more than £300 will have the rise phased in over two years rather than being applied in full immediately.
Cabinet Secretary for Finance and Welsh Language Mark Drakeford said previously: “We know businesses have faced significant economic challenges in recent years. This support package will help them manage the transition to updated rates bills while we deliver on our commitment to a fairer rates system.”
Business
Salon plans for Haverfordwest car valet site approved
RETROSPECTIVE plans to change a Pembrokeshire car sales/valet area to include a barber shop and tanning salon have been given the go-ahead.
In an application to Pembrokeshire County Council, Zizo Barbers & Affordable Cars, of Cambrian Place, Haverfordwest sought permission for the change of use of previously granted valet and car sales area, the works completed in 2024.
A supporting statement through agent Hayston Developments & Planning Ltd said the former commercial garage business has been operating in several guises from the premises for many years and has included petrol sales, motor servicing and repairs, MoTs, vehicle valeting, car sales and customer parking.
This followed on from a 2011 permission for the partial demolition of the original commercial garage, with a later approval for the site refurbishment to provide a workshop, valeting and offices for the existing car sales.
A supporting statement said: “The proposed update to a change of use involves the replacement of a car valeting service, which took place under a covered area at the rear of the site by a wash and valet operation – and restricting this service to those cars being sold at the Cambrian Place site. The use of a former office / store as a barber shop.
“The use of the former customer waiting area as a tanning salon including a new moveable timber shed for use as a meet and greet facility and as a car sales office. Provision of a communal parking area. Whilst retaining the principal use of the site for the sale of used cars.
“It is therefore suggested that the proposal will reduce both the elements of noise and the generation of dust whilst improving air quality as substantially fewer cars being power washed and valeted as well as the visual impact of these activities in this very public location – and with adjacent residential properties.”
Haverfordwest Town Council had objected to the scheme on highway safety grounds, but an officer report recommending approval said: “Highways colleagues have advised that the mixed use at the site is not likely to generate a significant number of trips that would lead to congestion and/or road safety issues due to the hours of operation are suggestive of visitors in the non-peak hours over the course of the day.
“In addition, highways colleagues have confirmed recorded accident history is negligible at the site, with one accident in 2023 at the nearby junction as a result of a rear shunt.”
It also said that, as the site lies adjacent to the A40(T) Welsh Government as a highway authority were consulted on the application, but has not not issued a direction in respect of this application.
One letter of objection had also raised issues of traffic and highway safety, chemical and detergent waste from the site and occasional activity after 5pm.
The report said the cessation of the valeting/washing use will reduce water usage at the site and any activity outside normal hours was an enforcement matter.
The application was conditionally approved by officers.
Business
Community council objections to Tenby Lidl store scheme
PLANS for a new store on the edge of Tenby by retail giant Lidl, which has seen objections from the local community council, are likely to be heard next year.
In an application recently lodged with Pembrokeshire County Council back in October, Lidl GB Ltd, through agent CarneySweeney, seeks permission for a new 1,969sqm store on land at Park House Court, Narberth Road, New Hedges/Tenby, to the north of the Park Court Nursing Home.
The proposals for the latest specification Lidl store, which includes 103 parking spaces, would create 40 jobs, the applicants say.
The application follows draft proposals submitted in 2024 and public consultations on the scheme, with a leaflet drop delivered to 8,605 local properties; an information website, with online feedback form; and a public exhibition, held last December at the De Valence Pavillion in Tenby, with a follow-up community event held at New Hedges Village Hall, close to the site, publicised through an additional postcard issued to 2,060 properties.

Some 1,365 responses have been received, with 89 per cent of respondents expressing support for the proposals, the applicants say.
A supporting statement says: “Lidl is now exceptionally well established in the UK with the Company operating c.980 stores from sites and premises both within and outside town centres. Its market share continues to increase substantially, and the company is expanding its store network considerably. The UK operational model is based firmly on the success of Lidl’s operations abroad with more than 10,800 stores trading across Europe.
It adds: “The granting of planning permission for the erection of a new Lidl food store would increase the retail offer and boost the local economy. The new Lidl food store would create up to 40 employment opportunities for people of all ages and backgrounds, providing opportunities for training and career development. This in turn will create an upward spiral of economic benefits.”
Local community council St Mary Out Liberty Community Council has formally objected to the scheme, saying that, while it supports the scheme for a Lidl store in principle, recognising “the economic benefits a new retail store could bring,” it says the proposed location “is unsuitable, conflicts with planning policy, and cannot be supported in its current form”.
Its objections add: “The A478 is heavily congested in peak tourist months. A supermarket would worsen congestion, increase turning movements, and heighten risks to pedestrians, cyclists, and emergency access.”
It also raises concerns on the potential impact through “noise, lighting, traffic disturbance, and loss of quiet amenity” on a neighbouring residential care home.
An initial assessment by Pembrokeshire County Council, highlighted concerns about the visual impact, with the authority’s landscape officer commenting that the store would introduce “an intense urban function into an otherwise rural context”.
The report added: “It is not considered to be compatible with the character of the site and the area within which it is located; and furthermore, will lead to a harmful visual impact on the setting of the National Park.”
The application will be considered by county planners at a later date.
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