Business

VAT cut critical for survival by three-quarters of small hospitality firms

Published

2 years ago

February 15, 2024

IN A STARK warning to the Treasury, a sweeping survey conducted by the National Caterers Association (NCASS) has unveiled that a staggering 75% of independent hospitality businesses view a reduction in VAT as essential for their survival amidst the severe inflationary pressures besieging the sector.

In Pembrokeshire we have already seen the closure of some well known local businesses including The Welsh Bakery, Madison’s Restaurant and many more.

The survey, which gathered insights from both members and the broader independent hospitality community, paints a grim picture of the challenges faced by small cafés, restaurants, bars, hotels, and street food vendors. With a clarion call for immediate action, the results underscore the urgent need for measures to protect the livelihoods of thousands operating within this critical industry.

Discontent is rife among the respondents, with 78% expressing dissatisfaction with the level of support provided by the government. A further 80% reported that the Autumn Budget’s measures failed to offer any relief, highlighting a disconnect between policy and the practical needs of these businesses.

Alarmingly, 37% of those surveyed indicated that their operations might not be sustainable over the next year, citing a dramatic 30% decrease in gross profit. The survey also revealed unanimous concern over rising costs, including staff wages, energy bills, and rent, forcing businesses to adopt drastic measures such as reducing staff hours, increasing prices, and accruing debt to stay afloat.

One member’s testimony encapsulates the despair within the sector, questioning the viability of continuing their business under the current conditions, especially in light of what they perceive as governmental negligence.

The crisis not only threatens the existing fabric of the UK’s independent hospitality scene but also stifles the growth of emerging businesses, many of which have been instrumental in revitalizing high streets across the nation. Despite the government’s promotion of hospitality-led regeneration initiatives, the current economic environment jeopardizes the emergence of future success stories akin to established brands like Meat Liquor, Pizza Pilgrims, and Bao.

The situation is dire, with an estimated 10 businesses closing daily within the hospitality sector. The NCASS reports a doubling in the closure rate among its members in 2023, with new startups hitting a standstill.

Amid calls for intervention, the plight of these small and micro businesses underscores a broader issue: the need for a conducive operating environment that nurtures community, supports families, and fosters economic growth. The increase in VAT and corporation tax, coupled with the cost-of-living crisis, has left many businesses operating on razor-thin margins, if any.

Highlighting the perverse incentive created by the current VAT threshold, which has not been reviewed since 2016, the NCASS argues for a recalibration to account for inflation and ease the burden on businesses teetering on the brink of viability.

The plea for a fairer VAT rate is a testament to the sector’s resilience and innovation, especially in the wake of the COVID-19 pandemic. With the treasury benefiting from increased tax receipts due to inflationary pressures, there’s a compelling case for leveraging this fiscal space to support the independent hospitality sector, thereby safeguarding high streets and the very essence of local communities.

As the industry stands at a crossroads, the consensus is clear: a reduction in VAT could be the lifeline needed for these businesses to weather the storm and contribute to the UK’s economic and social fabric. The government’s response, or lack thereof, could very well determine the fate of countless independent hospitality ventures teetering on the edge of survival.

Business

Tenby sailing club works approved by national park

Published

1 day ago

March 24, 2026

Bruce Sinclair - Local Democracy Reporter

A CALL for works to Tenby’s listed building sailing club to improve energy efficiency for the community organisation has been given the go-ahead.

In an application to Pembrokeshire Coast National Park, Harrison Richards of Tenby Sailing Club sought permission for replacing 24 timber windows at the Grade-II-listed Tenby Sailing Club, Penniless Cove Hill, with new Accoya timber double-glazed units.

The application added: “An energy survey conducted by Dragon Energy Consultants highlighted the existing single glazing and rotten window frames as a significant contributor to the club’s energy consumption.

“Tenby Sailing Club is a community organisation which seeks to organise activities year-round but faces significant energy costs being housed in a historic building. The current windows are beyond repair, with cracked glazing, decay, water ingress, and poor energy efficiency.

“The two windows at balcony level are not included, as they were previously replaced and remain in good condition. All new units will replicate the existing profiles, dimensions, glazing patterns, and overall appearance, ensuring no visual change to the building’s character.

“The neighbouring three-storey harbour stores occupied by Tenby Sea Cadets have previously replaced the building’s windows with double glazing. This like-for-like replacement in appearance will improve durability, weather resistance, and thermal performance while preserving the special architectural and historic interest of the listed building.”

An officer report recommending approval said: “The Sailing Club was built as a warehouse c. 1825, abutting the C17 sluice. Originally wine stores, it was later used by the local fishermen for stores and is now the home to Tenby Sailing Club, established in 1936.”

It said no adverse comments to the proposals had been received.

It added: “The proposal is to replace the majority (24 total) of windows in painted timber, double-glazed with face-mounted glazing bars of traditional scale and profile. Whilst a modern practice of glazing, the proposal involves no loss of historic fabric, provides an obvious visual improvement and addresses concerns as to heating costs.”

It finished: “The scheme is considered to be in keeping with the character of the listed building, and its setting in terms of design and form. As such, the application can be supported subject to conditions.”

The application was conditionally approved by planners.

Business

Taxi fare shock in Milford Haven as drivers switch to meters

Published

1 day ago

March 24, 2026

Tom Sinclair

TAXI passengers in Milford Haven are facing a sudden jump in fares, as drivers increasingly switch on their meters and charge full council-approved rates.

One Herald reader said a short return trip from Milford Haven to Neyland cost £30 — around double what he expected to pay.

But drivers insist the prices are not new — they are simply the official tariff now being applied.

Under Pembrokeshire County Council rules, the standard daytime fare starts at £4 for the first mile (£5 after 6pm), rising by around £3 per mile thereafter. Waiting time is also charged, meaning even short return journeys can quickly add up.

Higher rates apply in the evenings, at weekends and on bank holidays.

End of the £3 taxi

Milford Haven has long been known for cheap taxis, with short in-town journeys often costing as little as £3 — far below official rates.

That was down to competition, older vehicles, and the need to keep prices low in a town where many rely on affordable transport.

Drivers say those days are now over.

One local driver told The Herald: “People got used to cheap fares, but that was never the real price. Now we have to use the meter or we’re losing money.”

Fuel costs biting

Most taxis run on diesel, now around 170p per litre locally. For drivers covering long distances each day, the increase has hit hard.

Global tensions in the Middle East have pushed up oil prices, feeding directly into higher fuel costs in the UK.

With fare increases requiring a lengthy council process, many drivers say they have no option but to charge the full tariff.

Vulnerable hit hardest

The change is being felt most by those who rely on taxis the most.

Elderly residents, people on low incomes and those without access to a car are now facing higher everyday travel costs.

There has been no recent increase in Pembrokeshire’s official taxi fares, which have remained broadly unchanged since 2022.

The difference is simple: drivers are now charging them.

As one put it: “We’re not putting prices up — we’re just finally charging what we’re supposed to be charging.”

Business

Cardiff Airport expects Easter passenger surge as demand rises

Published

1 day ago

March 24, 2026

Tom Sinclair

CARDIFF AIRPORT is preparing for a busy Easter getaway, with more than 46,000 passengers expected to travel through the airport over the holiday period.

The figure represents an 18% increase compared to the same period last year, reflecting growing demand for both sunshine destinations and European city breaks.

The busiest routes this Easter are set to be Alicante, Dublin and Málaga, with flights operated by airlines including Ryanair, Vueling and TUI Airways.

Travellers heading for warmer weather can also take advantage of direct flights to the Canary Islands, including Tenerife, Lanzarote, Gran Canaria and Fuerteventura, alongside popular destinations such as Faro and Palma.

The airport says the increase builds on a strong start to 2026, with passenger numbers continuing to rise.

Chief executive Jon Bridge said the airport is approaching the one million passenger mark and expects the summer season to be its busiest since the pandemic.

He said: “It’s been an incredibly positive start to the year, and we’re looking forward to welcoming more passengers over the Easter period.

“Our teams are working hard to ensure travellers can start their holidays smoothly.”

Passengers travelling over Easter are being advised to allow extra time for their journey and check with airlines for the latest updates.

A total of 46,158 passengers are expected to pass through the airport between March 27 and April 12, with arrivals and departures almost evenly split.

Cardiff Airport said it continues to expand its range of destinations, including the addition of a direct service to Toronto, as it looks to strengthen its role in connecting Wales to international travel.