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Chancellor’s economic update includes VAT cut for hospitality sector, and customer discounts

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THE CHANCELLOR, Rishi Sunak, set out the measures in his summer economic update in the House of Commons on Wednesday (Jun 8), as he faces pressure to assist those who are most vulnerable to the financial crisis.

The Chancellor said he will cut VAT from 20% to 5% for food if people eat out to help those businesses which he said had been hardest hit by the coronavirus pandemic.

The chancellor announced discount to encourage people to eat out in August.

He says restaurants, pubs, bars and hotels as well as other attractions will be able to claim the money back within five days. It had been reported he was considering giving all UK adults a £500 voucher to spent with companies hit by coronavirus, but the Chancellor has decided not to go ahead with that proposal.

Another announcement is that employers who take back staff on furlough and continuously employ them until January will get £1,000 cash bonus per employee.

Instead Sunak announced a discount worth up to £10 per head for eating out in August. He said his final measure has never been tried in this country. It is an “eat out to help out scheme”, offering customers as discount worth up to £10 per head when they eat out from Monday to Wednesday in August.

Speaking in the Commons today, he said: “Our plan has clear goals, to protect, support and retain jobs.”

Regards furlough scheme, he said it must wind down, adding: “flexibly and gradually supporting people through to October” but that he is introducing a bonus for employers who bring staff back from furlough.

Employers who bring someone back from furlough and employ them through to January, paying them a minimum of £520 a month, will receive a £1,000 bonus.

He says that “in total we have provided £49bn to support public services since the pandemic began”.

He added: “No nationalist can ignore that this help has only been possible because we are a United Kingdom.”

Mr Sunak says the UK economy has already shrunk by 25% – the same amount it grew in the previous 18 years.

He also announced:

  • A £2bn kickstart scheme paying employers to take on unemployed 16 to 24 year olds for a minimum of 25 hours a week – he says the Treasury will pay those wages for six months plus a sum for overheads. He says there is no cap. This will apply in England and Wales.
  • VAT on food from restaurants, cafes, pubs and hotels will be cut until January 12 from 20% to 5%
  • Funding for apprenticeships and trainee-ships in England, there will be a separate announcement for Wales.
  • £1bn for the DWP to support millions of people back to work through Job Centres
  • A £2bn green homes grant in England to cover two thirds of the cost, up to £5,000, for energy efficient home improvements. Again the Welsh Government will have their own proposals on this given time.
  • A temporary cut to stamp duty in England and Northern Ireland.

Stephen Crabb has given his strong backing to the Chancellor’s coronavirus recovery plan, calling it “a huge step towards getting Pembrokeshire back on its feet”.

The Preseli MP said that the Chancellor’s ‘Plan for Jobs’ includes a £1000 bonus for businesses to bring back furloughed staff and the Kickstart scheme which will provide high quality work placements for unemployed youngsters. In England businesses will also be offered £1000 bonus to take on a trainee and £2000 for each new apprentice. Welsh Government has been given equivalent money to support their training schemes.

Speaking in the House of Commons following the Chancellor’s statement, Crabb said: “Make no mistake, this action to save a generation of young people from bearing the brunt of the economic crisis is incredibly positive and to be welcomed.”

The MP has previously warned about the prospect of a surge in unemployment as a result of the lockdown.

The Chancellor also announced a cut in VAT for the tourism and hospitality sector, giving a much needed boost to some of the sectors hardest hit by coronavirus. Early on in the lockdown, Crabb wrote to the Chancellor to call for a package of support for Tourism that included a VAT cut.

Responding to the announcement today, he said: “I am delighted that the Chancellor has listened to the proposals that many MPs from coastal areas have put forward. Tourism and hospitality need a real shot in the arm and the VAT cut will be very welcome.”

Today’s statement also saw the launch of a new ‘Eat Out to Help Out’ scheme, giving people 50% off meals out to encourage more families to eat out or get a takeaway during the month of August.   These measures will be important for Pembrokeshire’s many hospitality businesses who are still awaiting an announcement from Welsh Government on when they can open again.

On Friday Stephen Crabb will be bringing together more than thirty local pubs and restaurants for an online discussion with the County Council and others about how the sector can re-open safely and successfully.

 

 

Community

Historic estate nears capacity after attracting 60 new organisations

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Major Carmarthen site transformed into thriving health and wellbeing campus

PARC DEWI SANT in Carmarthen is approaching a major milestone after attracting 60 organisations in just two years, transforming the historic estate into one of Wales’ most significant integrated health and wellbeing campuses.

Mark Andrews, Director of Parc Dewi Sant

Set within 38 acres of the former St David’s psychiatric hospital site, the campus is now home to around 80 occupiers spanning primary care, therapy and rehabilitation services, nursing education, specialist autism provision, charities, and a wide range of community organisations.

Demand for space within the main buildings has been strong, with most now fully occupied. Attention is turning to two remaining buildings on the estate which require substantial restoration and are expected to form the next phase of development.

The owners say discussions are already underway with potential partners interested in repurposing the buildings for further healthcare, rehabilitation, and community-based services. They are seeking organisations that can help maximise the long-term potential of the site before major refurbishment work begins.

Future uses under consideration include nursing care provision, mental health step-down accommodation, and complementary services designed to strengthen the wider health and wellbeing network already established at Parc Dewi Sant.

Originally developed in the 19th century as a county asylum and later used for NHS mental health services until 2001, the estate has been reimagined as a modern campus focused on prevention, education, and community wellbeing.

Today, a broad range of services operate from the site. These include GP provision alongside NHS clinics such as diabetic eye screening, antenatal services, weight management, and smoking cessation programmes.

Community-based services including social prescribing, the Hywel Dda Community Resource Team, and the Parent and Infant Feeding Group are also based there, alongside specialist facilities such as Hafen Derwen and the Cwm Seren mental health unit.

In addition to clinical provision, the campus hosts a variety of wellbeing, leisure, and support organisations, including the Better Health and Wellbeing Hub, Hwybod + gym, and a range of therapy and rehabilitation services supporting both physical and mental health.

Parc Dewi Sant serves a strategic catchment of around 187,000 people across Carmarthenshire and is located close to Glangwili Hospital, offering complementary services focused on prevention, recovery, and community care.

Mark Andrews, Director of Parc Dewi Sant, said: “It has been a privilege to become custodians of such a historic and important estate in the heart of Carmarthen.

“From the outset we believed the site had enormous potential, and it is incredibly rewarding to see such a vibrant community of organisations now operating here.

“To have 80 occupiers on site, including 60 who have joined us in the past two years, is a fantastic milestone and a real testament to the vision for Parc Dewi Sant.

“As the main buildings reach capacity, our focus now turns to the remaining buildings and how they can be brought back into productive use.

“We would welcome conversations with organisations that can bring complementary services and ideas to the site and help us continue building a campus that supports health, wellbeing, and community life across Carmarthenshire.”

Organisations based at the campus say the environment has created new opportunities for collaboration and improved service delivery.

Meddygfa Parc, a new NHS GP surgery, relocated to the site from the town centre last month.

Jodi Bateman from the surgery said: “We feel incredibly fortunate to have moved to the beautiful surroundings of Parc Dewi Sant. This exciting new chapter allows us to continue providing high-quality care in a welcoming and modern environment.

“Our new premises give us the space and facilities to expand and develop the services we offer, helping us to better meet the needs of our growing community.”

The site will also host a free public open day on Saturday (Mar 14), giving local residents the opportunity to explore the campus and meet some of the organisations based there.

 

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Senedd roadshow to visit Haverfordwest college ahead of key election

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Interactive photobooth campaign aims to boost youth voter engagement in Pembrokeshire

AN INTERACTIVE Welsh Parliament roadshow designed to encourage voter participation will visit Pembrokeshire next month as part of a nationwide campaign ahead of the Senedd election.

The “More Power to You” photobooth experience will stop at Coleg Sir Benfro in Haverfordwest on Tuesday (Apr 15), offering students and members of the public the chance to learn more about how Welsh democracy works in a fun and accessible way.

The visit comes in the lead-up to the Senedd election on Thursday (May 7), which is expected to be one of the most significant in Wales’ political history. Changes include an expanded Senedd, increasing from 60 to 96 Members, as well as new constituencies and a revised voting system.

Visitors to the roadshow will be invited to take part in a shareable photobooth experience while learning how decisions made in Cardiff Bay impact everyday life in Pembrokeshire, including healthcare, education, transport and the environment.

Information will also be available on how to register and vote, with staff on hand to guide people through the process and answer questions.

Organisers say the aim is to make voting more visible and relevant, particularly for younger people and first-time voters, by bringing the campaign directly into communities and education settings.

The Pembrokeshire stop forms part of a wider tour across Wales, with earlier events taking place in Wrexham, Bridgend and Cardiff before moving into colleges.

Welsh social media influencers are also supporting the campaign, helping to raise awareness and encourage participation among younger audiences through online content.

Media organisations are invited to attend the Haverfordwest event, with opportunities available for interviews, photography and coverage.

 

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Cymraeg

Everyday spaces key to future of Welsh language

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EVERYDAY use of the Welsh language must extend beyond classrooms into workplaces, communities and online spaces if it is to thrive, according to a new report.

The study, published by the Commission for Welsh-speaking Communities, highlights the need for greater investment in the social, cultural and digital environments where people live their daily lives.

The report, Cymraeg in every community: strengthening the Welsh language, focuses on areas where fewer than 40% of people speak Welsh. It examines how the language can become a more natural part of everyday life in these communities.

The Commission says that while education remains vital, it cannot carry the responsibility alone. Young people must have opportunities to use Welsh outside school, particularly in activities they enjoy such as sport, youth groups and cultural events.

Among its recommendations is the creation of a dedicated fund to boost Welsh-language content online, including support for young people producing digital media in Welsh.

The report builds on earlier work published in August 2024, which focused on areas with higher numbers of Welsh speakers.

Commission co-chair Dr Simon Brooks said: “To ensure Welsh is a national language that belongs to us all, its future as a community language must be secured in every part of Wales. We urge the next Welsh Government to act on these recommendations with ambition.”

Co-chair Professor Elin Haf Gruffydd Jones added that there is strong appetite to use Welsh, but a lack of spaces to do so.

She said: “More than half of Welsh speakers live in areas where fewer than 40% of people speak the language. Public policy must create the right conditions for Welsh to flourish in everyday settings, with real investment in the spaces where people spend their time.”

She also pointed to international examples, including the Basque Country, where communities have actively created environments for their language to be used naturally.

Cabinet Secretary for Finance and the Welsh Language, Mark Drakeford, said the Welsh Government remained committed to its target of one million Welsh speakers by 2050.

He said: “Significant progress has already been made, with 17 recommendations from the Commission’s first report implemented during this Senedd term. This latest report provides a strong foundation to build on that momentum.”

 

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