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Truss unveils plan to cap domestic gas and electricity bills at £2500 per year from October

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ON THURSDAY morning, September 8, the Prime Minister unveiled her big idea to help UK families cope with spiralling energy costs over the next two years.

Mrs Truss said domestic gas and electricity bills in the UK will be capped at £2500 per year from October in a statement to the House of Commons.

The announcement means that families will only pay twice as much for their energy than they did last year.

The price cap is around £1,000 less than that already announced.

It’s still about £500 more than at present.

As well as households, businesses are also expected to receive some help. Many firms are currently facing even sharper rises than households, and many fixed-rate deals for business expire this October, exposing thousands of firms to full costs that could rise by four or five times or more.

She did not provide details of relief for businesses, apart from a brief mention that a similar measure would provide for six months of protection and targeted support for businesses most at risk.

Otherwise, Liz Truss kicked support for business into the long grass for cutting by Jacob Rees Mogg.

She said she would “not give in to the other side” on windfall taxes on energy firms as “that would undermine the national interest by disincentivising energy companies we need to invest in this country.

“We are doing important business to help people and businesses get through this winter and winter whilst helping Britain secure its long-term energy supplies.

“There will be as cost to this intervention, but we are facing a global energy crisis.”

Preseli Pembrokeshire MP Stephen Crabb praised the PM and said to the House: “Doesn’t this demonstrate Mr Speaker that Conservative Governments do not stand-by when help is needed.”

Shock data released this week shows that 355,000 companies with a turnover higher than £1m are designated as high energy users – industries such as steel, glass, concrete, and paper production.

Of those, an estimated 75,972 are at risk of insolvency, and 26,720 could fail because of energy costs.

That’s in addition to the 26,000 insolvencies already predicted this year.

Without a large-scale support package from the government, more businesses will fail than during the pandemic and any other recession.

A business turning over a million pounds two years ago would have spent around 8% of that on energy costs and made profits of around £90,000.

If the cost of energy doubles to 16%, that instantly wipes out profitability, and they’re straight into a scenario where it threatens the viability of the business within a year.

Beyond the large, energy-intensive companies, smaller companies with turnover under £1m were also at risk of failure, data analytics firm Red Flag Alert said on Tuesday (Sept 6).

In Pembrokeshire, some firms have already closed their doors – one example is the popular Haven Brasserie in Nolton Haven, which said it would shut for “reasons of economic uncertainty”.

The hospitality sector, which is a huge part of the local economy, is facing a triple threat of increasing energy bills, higher supply and staffing costs, and a fall-off in consumer spending, squeezed by inflation.

Red Flag Alert calculates businesses overall will need £100bn a year in support to tackle the rise in energy bills.

The government is already under pressure over how it will finance a promised package of support for households while sticking to promises to cut taxes.

Responding to the PM’s announcement, opposition leader Keir Starmer said the argument against a windfall tax was nonsense and that energy companies’ own announcements showed investment would not be deterred.

He said the PM was focused on protecting the excess profits of energy companies who reaped their unplanned benefit from Russian aggression. At the same time, ordinary families would end up repaying the money she’d borrowed years ahead through their bills.

Keir Starmer said that strategy was a tax on families instead of hitting big corporations who had failed to invest money in energy security and infrastructure.  

Crime

Man spared jail after baseball bat incident in Milford Haven

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Judge says offence was so serious only a prison sentence was justified

A 44-YEAR-OLD has been given a suspended prison sentence after admitting carrying a baseball bat in a public place during an incident in Milford Haven.

Ian Parker, of Cwrt Garreg, Cefn Glas, Bridgend, appeared for sentence at Haverfordwest Magistrates’ Court on Tuesday (Dec 9).

The court heard that on Tuesday (Oct 29), Parker travelled to Prioryville, Milford Haven, where he was found in possession of an offensive weapon — a baseball bat — without lawful authority or reasonable excuse.

Earlier hearings were told that Parker believed his son was at risk and had travelled from Bridgend to Milford Haven. During the incident, another man was struck with the bat before Parker left the scene. Parker later admitted the offence and entered a guilty plea on November 18, with sentencing adjourned for a pre-sentence report.

Passing sentence, District Judge M Layton said the offence was so serious that only a custodial sentence could be justified.

Parker was sentenced to 36 weeks’ imprisonment, but the sentence was suspended for 24 months after the court accepted there was a realistic prospect of rehabilitation.

He will be subject to 24 months of supervision and must complete 200 hours of unpaid work within 12 months. The court also imposed a rehabilitation activity requirement of up to 25 days, requiring Parker to attend appointments and take part in activities as directed by probation services.

The baseball bat was ordered to be forfeited and destroyed under the Prevention of Crime Act 1953.

Parker was also ordered to pay £85 in prosecution costs and a £187 surcharge, to be paid in full within 28 days.

The judge warned that any breach of the suspended sentence order could result in the prison term being activated.

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Business

Independent brewers join call for business rates relief as pub closures feared

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INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.

The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.

The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.

Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.

New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.

The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.

Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.

“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.

“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”

Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.

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Community

Annual charity carol service raises funds for good causes

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MID and West Wales Fire and Rescue Service held its annual Charity Carol Service on Wednesday (Dec 10) at Ebeneser Baptist Chapel in Crymych.

The event brought together members of the local community alongside Fire Service staff for an evening of carols, readings and festive refreshments, marking the Christmas season in a warm and inclusive atmosphere.

This year’s service supported two important charities — the Fire Fighters Charity and Cancer Research Wales — with all proceeds going directly towards their ongoing work.

A total of £597 was raised on the night, which will be shared equally between the two charities.

The Service thanked the congregation at Ebeneser Baptist Chapel for hosting the event, as well as everyone who gave their time, support and generosity to make the evening such a success.

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