Business
Welsh business confidence soars despite February’s output decline
WELSH business confidence has surged to its highest level since November 2021, despite facing output challenges in February. This optimism in the private sector shines against a backdrop of modest economic contraction, according to the latest NatWest Wales PMI® Business Activity Index. The index, which dipped from 49.9 in January to 47.5 in February, highlights a modest reduction in activity – marking the most significant decrease since the previous October. Notably, this places Welsh firms alongside those in the North East as the joint-lowest performers in the UK, primarily attributed to subdued customer demand and ongoing supply chain difficulties.
Despite a continuous ninth-month decline in new orders, February saw the slowest pace of this downturn, with some businesses noting early signs of recovering demand conditions. However, the enduring cost-of-living crisis continues to suppress sales, creating a fractional downturn in new business that contrasts with a modest expansion across the UK.
Remarkably, February witnessed a significant uplift in business confidence among Welsh private sector companies. This renewed optimism, the most robust since late 2021, aligns closely with the broader UK trend. Businesses are buoyed by prospects of product range extensions, customer base expansions, and anticipated stronger client demand.
However, Welsh firms reported a seventh consecutive month of workforce reductions, although the rate of job losses has slowed considerably, marking the softest drop since August 2023. Despite efforts to enhance efficiency and manage costs by not replacing voluntary leavers, the reduction in staff numbers remains significant, outpaced only by Yorkshire & Humber across the UK.
Furthermore, Welsh companies have seen an ongoing decrease in outstanding business since May 2022, with February’s contraction marking one of the sharpest declines. This reduction in backlogs of work underscores the broader challenges faced by the region’s private sector.
On the inflation front, Welsh firms experienced an accelerated increase in average cost burdens during February, with input prices climbing due to higher raw material costs and rising wages. This upturn in inflation, although less severe than the UK average, was the sharpest since May 2023. In response, Welsh companies raised their selling prices significantly, with service providers leading this charge as they passed increased costs onto customers.
Jessica Shipman, Chair of the NatWest Cymru Regional Board, reflects on the dual nature of the current economic landscape for Welsh businesses. While acknowledging the sharper fall in output and the weight of supply chain issues on production capacity, Shipman highlights the fractional easing in the decline of new business and the buoyant business confidence. This optimism is underpinned by strategic expansions and marketing investments, despite the uptick in inflationary pressures driven by higher wage and imported goods prices. Shipman notes the continued trend of cost-cutting through workforce reductions, even as business confidence strengthens and the pace of job shedding eases, signalling a cautious yet hopeful outlook for the Welsh private sector.
Business
Maenclochog care home turned down after community concerns
A CARE HOME scheme for a Pembrokeshire village, which saw objections from the local community council after youngsters had ‘absconded’ from similar sites locally, will need a formal application, planners have said.
In an application to Pembrokeshire County Council, Future Nest Care Ltd, through agent Evans Banks Planning Limited, sought a certificate of lawfulness to allow the use of dwelling house Brynawel, Maenclochog as a care home for two youngsters between the ages of five and 16 with specific needs.
A supporting statement said the youngsters would be supported by three qualified and experienced staff members during the day and two at night; the certificate of lawfulness application made to establish that formal planning permission is not required to use an existing two-storey detached dwellinghouse into a residential care facility to accommodate two children, supervised 24/7 by staff.
It added: “The proposed use is designed to provide a safe, nurturing, and family-style environment to help the young residents develop essential life skills and prepare for independent living. The residing youngsters will attend local schools or colleges and participate in community life, in the same manner as any young person living in a traditional family home.
“The qualified and experienced staff will prepare those children for their re-introduction back into a life without supervised care. The residing youngsters would attend the local school or further education college, as would any youngster under 18 living in a family home.”
However, Maenclochog Community Council objected to the proposals after residents expressed their concerns.
In its objection, it said: “This proposal has raised significant concern within the village, particularly as there are already multiple provisions for similar accommodation on the outskirts of Maenclochog.
“In the past, young people accommodated at these facilities have frequently absconded, leading to repeated searches across the surrounding area. This history heightens local anxiety regarding the introduction of further such provision within the village.”
It added: “Neighbouring residents have not been consulted regarding the proposed change of use, which has led to unease and a lack of confidence in the applicants’ intentions and in the suitability of the site for this form of development.”
It went on to say: “Before any decision is made, Maenclochog Community Council strongly believes that local residents should be afforded the opportunity of a public consultation. While the proposal may represent an economic decision for the property owners, it has wider implications for the village and its residents.”
An officer report recommended refusal of the certificate of lawfulness, concluding that “a material change of use would occur in relation to the proposed use of the site and as a result a certificate of proposed lawful use cannot be granted”.
In refusing the lawfulness call, planners said “the frequency of staff changes and the number of vehicle movements associated with the proposed use of the property would be materially different to those associated with its lawful use as a dwelling,” the material change of use to a care home requiring a formal planning application.
Business
Plaid energy policy challenged by Labour after Adam Price interview
LABOUR SAYS MINISTERS MUST EXPLAIN COST AND TIMETABLE FOR PYLON PLANS
PLAID CYMRU’S approach to energy infrastructure has come under scrutiny after Energy Minister Adam Price was challenged over plans to reduce the use of overhead pylons in Wales.
Mr Price defended the Welsh Government’s position during an appearance on BBC Radio Wales’ Sunday Supplement, arguing that communities must have greater confidence in how major grid projects are handled.
Plaid Cymru has pledged to give communities a stronger voice over energy developments and to look more closely at alternatives to overhead transmission lines, including underground cabling where possible.
The issue has become increasingly sensitive in rural parts of Wales, where proposed pylon routes linked to renewable energy schemes have raised concerns about landscape impact, tourism and local consultation.
However, Welsh Labour said the minister had failed to explain when any restriction on pylons would take effect, or who would pay the additional cost of placing cables underground.
A Welsh Labour spokesperson said: “Adam Price keeps saying how clear their manifesto was and yet he won’t say when they’re banning pylons. They won’t say who is paying for the extra cost of undergrounding cables.
“Without certainty, companies won’t invest. That’s thousands of clean, green energy jobs at risk. Plaid need more than a plan to have a plan.”
Labour said the Welsh Government must now set out how its policy would work in practice, including whether it amounts to an outright ban, what exemptions would apply, and how any extra costs would be funded.
The debate highlights the challenge facing ministers as Wales seeks to expand renewable energy generation while addressing public opposition to large-scale grid infrastructure.
Business
New facilities at Haverfordwest Target Shooting Club agreed
A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.
In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.
A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”
It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”
It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.
It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.
“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”
It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”
The application was conditionally approved by planners.
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