Business
Business Rates Relief cut ‘spells disaster’ for Welsh hospitality sector
THE ANNOUNCEMENT was made last year, but this week the reality kicked in.
The Business Rates Relief has been cut in Wales has kicked in and the hoped-for u-turn has not materialised.
The substantial reduction in business rates relief for hospitality firms has stirred significant concern amongst business owners and industry representatives across Wales.
Effective from 1 April 2024, the relief has been cut from 75% to 40%, accompanied by a 5% rise in rates. This decision is part of a broader strategy to redistribute financial resources to support essential services, particularly the health service, amidst ongoing fiscal pressures.
Finance Minister Rebecca Evans has acknowledged the difficulty of these decisions, emphasising the government’s commitment to managing a tight budget in challenging times. However, the reduction in support has sparked fears of financial strain and potential closures within the hospitality sector.
Industry Response
The announcement has been met with dismay by industry leaders, who warn of the competitive disadvantage Welsh businesses will now face. David Chapman, Executive Director of UKHospitality Cymru, highlighted the stark contrast with England, where businesses continue to benefit from the 75% relief. “This disparity will undoubtedly place Welsh businesses at a competitive disadvantage, particularly small businesses that will see their counterparts across the border enjoying frozen rates,” Chapman said.
A typical pub or restaurant in Wales is now expected to pay £6,400 more than one in England, a disparity that could have severe implications for the viability of many establishments.
Budget Cuts and Tourism
The reduction in business rates relief is not the only financial challenge facing the Welsh hospitality and tourism sectors. The Welsh Government’s budget for 2024/25 also includes a £16m cut in funding for tourism, culture, and sport. Given the strategic importance of tourism to Wales’ economy and cultural identity, this decision has been met with criticism. The sector, already facing intense economic challenges, views the cut as a significant setback that could undermine long-term confidence and investment.
Political and Community Reaction
Stephen Crabb MP, pictured here with restaurant owner Dan Mills, has been vocal in his efforts to highlight the challenges facing the hospitality sector, especially in regions like Pembrokeshire that rely heavily on tourism. Crabb has been engaging with local business owners, bringing attention to the sector’s struggles at both the local and national levels. “The upcoming season should be a time of optimism, but the reality is far different due to these financial challenges,” Crabb stated, emphasising the need for greater support to ensure the sector’s competitiveness and sustainability.
The Welsh Conservatives have strongly criticised the Welsh Government’s decision, with Andrew RT Davies MS, the party’s leader, and Tom Giffard MS, Shadow Minister for Tourism, both calling for a reevaluation of the relief cut. They argue that the reduction could be catastrophic for businesses already contending with the post-pandemic economic landscape, urging the government to maintain competitive rates relief.
Calls for Reconsideration
Amid growing concerns, FOR Cardiff, representing businesses within the city, has issued an open letter to the Minister for Finance, urging the Welsh Government to reconsider its approach to business rates relief. The organisation highlights the critical role of high street businesses in the everyday economy and warns of the potential for widespread closures without adequate support. Carolyn Brownell, FOR Cardiff’s Executive Director, called for a more gradual approach to tapering relief, suggesting that some of the government’s capital funds could be redirected to provide targeted support where it’s most needed.
Looking Forward
As the hospitality sector braces for the impact of these financial changes, the debate continues over the best path forward. Industry leaders, political figures, and community representatives are calling for a balanced approach that supports businesses through these challenging times while addressing the fiscal needs of the country.
The coming months will be crucial in determining the long-term effects of these decisions on Wales’ hospitality sector and broader economy.
How many pubs and restaurants will survive?
Business
Langdon Mill Farm Pembrokeshire expansion signed off
THE FINAL sign-off for plans for a heifer accommodation building and associated works at one of Pembrokeshire’s largest dairy farms, with a milking herd of 2,000 cows, have been given the go-ahead.
In an application backed by councillors at the December meeting of Pembrokeshire County Council’s planning committee, Hugh James of Langdon Mill Farms Ltd sought permission for a 160-metre-long heifer accommodation building, a slurry separation/dewatering building and associated yard areas at 1,215-hectare Langdon Mill Farm, near Jeffreyston, Kilgetty.
A supporting statement through agent Reading Agricultural Consultants said: “The holding currently has a milking herd of approximately 2,000 cows, which are housed indoors for the majority of the year, with dry cows and heifers grazed outdoors when weather and soil conditions permit.

“There has been significant investment in buildings and infrastructure at the farm over the last decade in respect of cattle accommodation, slurry storage, milking facilities, Anaerobic Digestion (AD) plant, feed storage. Recently a calf and weaned calf accommodation buildings were approved by Pembrokeshire County Council with construction almost complete.
“The unit is efficient, achieving yields of more than 10,000 litres/cow/year, with cows being milked three times/day in the 60-point rotary parlour. Langdon Mill Farm currently directly employs 21 full-time, and three part-time staff. Of these, four live on site in the two dwellings opposite the farm, with the remaining staff living in the locality.”
It added: “Although the unit has previously purchased heifers to aid expansion, the farm now breeds most of its own replacements to improve genetics and to minimise the ongoing threat of bovine tuberculosis (bTB).”
It said the proposed building would be used by heifers between the ages of 7-22 months, the siting “directly influenced by the adjacent calf and weaned calf buildings, with livestock being moved from one building to the next as they get older”.
Members unanimously supported the recommendation of approval, giving delegated powers to the interim head of planning to approve the application following the final approval of a habitats regulations assessment.
An officer report published yesterday, February 5, said Natural Resources Wales confirmed it had received the assessment, and, “in consideration of the mitigation measures detailed and on the understanding there is no increase in stock, they agree with the LPA’s conclusion that an adverse effect upon the integrity of the SAC [Special Areas of Conservation] sites can be ruled out”.
Formal delegated approval has now been granted by officers.
Business
Report into Wales SME finance paints mixed picture as barriers remain
A NEW report by the British Business Bank and Economic Intelligence Wales shows that while most Welsh SMEs remain financially stable, many continue to face barriers to accessing finance and are less likely than their counterparts in other devolved nations to seek funding for future growth.
The Wales SME Access to Finance Report 2026 has found that 66% of Welsh SMEs are currently using external finance, and eight in ten (80%) report a positive cash flow position. Despite this, 19% of smaller Welsh businesses reported experiencing barriers to accessing finance, the highest proportion among the devolved nations.
The report also highlights a more cautious outlook among Welsh SMEs when it comes to future investment. Just 17% of Welsh businesses expect to require additional finance over the next year, compared with 42% in Northern Ireland and 47% in Scotland. While 62% of Welsh SMEs that anticipate needing finance say they are confident about securing it, overall demand for funding remains lower than elsewhere in the UK.
Regional variations within Wales are also evident. SMEs based in North Wales and South West Wales were more likely to report barriers to finance (both 21%), while South West Wales businesses were least likely to feel confident about securing additional funding. At the same time, SMEs in South East Wales were most likely to report a finance requirement above £250,000, reflecting differing growth profiles across regions.

The findings underline the importance of a diverse and accessible finance ecosystem to support business investment, innovation and growth across all parts of Wales.
Susan Nightingale, Director UK Network, British Business Bank, said: “Welsh businesses continue to show resilience and confidence, with most reporting positive cash flow and steady growth expectations. Yet, clear regional and structural differences remain in access to finance, particularly for smaller businesses and sole traders. With Wales recording the highest share of smaller businesses experiencing barriers to finance among the devolved nations, it is vital that all businesses, wherever they are in the country, have the knowledge, confidence and support to secure the right finance for them. This will be key to unlocking sustainable growth across every part of Wales.”
Giles Thorley, Chief Executive of the Development Bank of Wales, said: “This year’s Wales SME Access to Finance Report shows a mixed picture. It’s encouraging to see many Welsh SMEs reporting strong cash flow, yet concerning that confidence and demand continue to lag behind other UK nations. If we want our businesses to innovate, invest and grow, closing that gap must remain a priority.
“Improving access to finance isn’t something any one organisation can solve alone, but the Development Bank of Wales will continue to play a vital role in supporting SMEs, working alongside partners across the wider finance ecosystem to help businesses invest, innovate and grow.”
Economic Intelligence Wales is a unique research collaboration between the Development Bank of Wales, Cardiff Business School, Bangor Business School, the Enterprise Research Centre, and the Office for National Statistics (ONS).
Business
International Women’s Day event aims to open doors for future talent in West Wales
BUSINESS leaders, students and policymakers will gather in Pembrokeshire next month to mark International Women’s Day with an event focused on opportunity, leadership and retaining talent in West Wales.

The third annual Partners in Progress: Give to Gain conference will take place on Friday (Mar 6), bringing together established professionals and the next generation of workers to share practical advice and real-world experience.
The event is organised by Institute of Directors Wales, in partnership with Bluestone National Park Resort and the Welsh Government through Trade & Invest Wales.

Hosting the conference in West Wales, rather than a city centre, aims to highlight the growing opportunities available in regional communities and the role local employers play in keeping skilled people closer to home.
Running from 10:00am to 2:00pm, the programme will include panel discussions, site tours and networking sessions. Sixth form, college and university students will be encouraged to question speakers directly about careers, leadership and progression.

Speakers include Belinda Houghton-Jones of RBC Brewin Dolphin, Alex Shufflebottom Jones, former managing director of Shufflebottom Ltd and now an investor and mentor, Dr Owain James of Darogan, and Jane Wallace-Jones, founder of Something Different. The panel will be chaired by Richard Selby, National Chair of IoD Wales.
Organisers say the focus will be firmly practical, with businesses sharing examples of how they are developing staff, widening access to opportunity and building inclusive workplaces.
The discussion comes as Welsh firms continue to report difficulties recruiting and retaining skilled staff. IoD Wales’ latest State of the Nation survey found that skills shortages remain the biggest concern for almost four in ten organisations.
Jo Price, Nations Manager for Wales at IoD Wales, said the aim is to connect experience with ambition.
She said: “Partners in Progress is about bringing people together to tackle real challenges facing businesses and future talent in Wales.
“By connecting leaders and students in West Wales, we can share what works, build confidence and create opportunities where people live and want to work.”

Rebecca Rigby, Director of Operations at Bluestone, added: “We’re proud to host this event for a third year. It’s about creating meaningful connections between future talent and inspirational leaders, and showing what’s possible beyond the big cities.”
Thanks to Welsh Government support, tickets are fully funded, although places are limited. Standard prices are £25 plus VAT for members and £35 plus VAT for non-members.
Places can be booked online via the IoD website.
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