Ryan Reynolds may have sprinkled Hollywood dust on Wrexham, but Wales’s hospitality sector is struggling
“The Welsh government need to realise that what they’re doing is damaging the industry.”
That’s according to Sam Regan, owner and managing director of the Lemon Tree – a hotel and restaurant in Wrexham.
The city has gained international attention in recent years as the home of the football club with the Hollywood star owners.
But despite the high-profile investment of Ryan Reynolds and Rob McElhenney, the hospitality industry here, and across Wales, is struggling amid a series of challenges.
“We’ve been in a little bit of a bubble because of the media attention brought by Wrexham football club. But it’s not the whole answer,” Mr Regan told Sky News.
Sam Regan. Pic: Joe Bickerton
‘Major implications’
Mr Regan, who is also chair of the regional tourism partnership, says international visitors are bringing “much higher spends” to Wrexham than a domestic market, but this may not be the case in the long-term.
The challenges facing the hospitality industry are not exclusive to Wales – they include rising food costs and higher utility bills.
But at an already difficult time for the sector, business rates relief for Welsh retail, hospitality and leisure businesses are being slashed.
In the last financial year, businesses were eligible for 75% off their liability, but this year that’s been reduced to 40%.
“The average business in Wrexham is going to be affected to the tune of about £8,000 by the decision not to give the 75% and keep the 35% back for other purposes in Wales,” Mr Regan added.
Sam Regan. Pic: Joe Bickerton
In England, the relief rate remains at 75%.
There is a concern from some that businesses will look to base themselves in England due to the difference in support.
“Anecdotally, I’ve heard evidence that a gym chain has been looking at Wrexham as an option and also Shrewsbury, which isn’t a million miles away, and they’ve opted for Shrewsbury ultimately because business rates relief is significantly different,” Mr Regan said.
“We’ve got businesses in Wrexham, where you could cross the road, literally cross the road from one café to another…one’s got 40% rate relief from 1 April, and the other’s got 75%.
“That’s got major implications on small businesses.”
‘Pips squeezed out’
The total amount the Welsh government is spending on business rates support for hospitality, retail and leisure businesses will go down this year.
In 2023-24, £140m was invested but this year it will invest only £78m.
Rhys and Charlotte Williams own the 66-bed Dunoon Hotel and two restaurants in Llandudno, Conwy county.
Mr Williams told Sky News the cut in business rates relief means he will have to pay over £20,000 more this year – an increase of around 66%
“£20,000 is a big number when you’re also still dealing with rising costs after the energy hikes last year, and the big uplift in costs across the board,” he said.
Rhys and Charlotte Williams. Pic: Rhys Williams
Mr Williams said it felt like the hospitality sector in Wales was “having the pips squeezed out” of it.
“If I was in England, as a business I’m going to be paying just over £13,500 next year,” he added.
“So suddenly hospitality in Wales is being put on the back foot against its immediate competitor, and life is tough enough already without having that thrown on you.”
He said the business saw a 350% increase in its energy bills last year and it would be a “long old slog” to gradually exit those contracts over the next six to 18 months.
“You get a very real sense, particularly up in the North, that the South is just another country that has its own set of priorities, political and economic or otherwise, from the North. And the North is just stranded,” he added.
Yan White. Pic: Cowshed
‘Hard to continue’
Yan White is director of The Queer Emporium in central Cardiff.
He told Sky News he had recently been looking at the possibility of setting up a branch in Bristol.
“We know that if we go to Bristol and do a pop-up, we’re likely to make more money and even though we’re a non-profit, that is still something we have to think about,” he said.
“We’ve looked at opening a second store somewhere like Bristol potentially. But a big part of that reason is because we kind of would need it to keep us buoyant.”
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He said the Welsh government was “cranking up the handles” by cutting support and was making it “incredibly hard to continue operating”.
“It’s going to cost us a few extra thousand a year, which on our turnover as a non-profit, that is quite significant. That’s not a small amount,” he added.
“I do worry that what we’re basically seeing is a huge bubble that’s about to burst.”
‘Doing all we can’
A Welsh government spokesperson said they were aware of “the ongoing cost-of-living and cost-of-doing-business crises”.
“We are doing all we can, with the resources and powers available to us, to provide support in these difficult times..
“We provide a range of permanent non-domestic rates reliefs, worth £250m annually and fully funded by the Welsh government.
“This includes small business rates relief, which supports ratepayers for around 70,000 properties across Wales, of which over 50,000 receive full relief.
“We are also providing a fifth successive year of support for retail, leisure and hospitality businesses with their rates bills, at a cost of £78m.
“This builds on the almost £1bn of support provided in rates relief schemes to these sectors since 2020-21.”
The Welsh Conservatives say pubs and restaurants in the country are facing “real hardship” and have committed to maintaining business rates relief “so businesses can be properly supported”.
Plaid Cymru say the reduction in business rates relief was a “perfect storm” when coupled with other pressures and that the existing business rates system “simply does not work”.
Oleksandr Usyk has become the undisputed heavyweight champion of the world after defeating Tyson Fury in boxing’s biggest fight of the century.
The Ukrainian won on a split decision following the match in Saudi Arabia.
Usyk had 115-112 and 114-113 on two cards, while Fury took the other 114-113.
Oleksandr Usyk lands a punch on Tyson Fury. Pic: PA
Fury disputed his loss after the match, saying: “I believe I won that fight. I believe he won a few rounds but I won more of them.
“Make no mistake I won that fight and I’ll be back.”
In response Usyk said he was “ready for a rematch”.
Pic: Action Images via Reuters
Fury came under early pressure, with Usyk taking the centre of the ring with an aggressive offensive from the start.
At one point Fury was pushed against the ropes and started laughing as Usyk applied pressure.
The “Gypsy King” looked relaxed as he moved around the ring in the early rounds and picked his shots.
Pic: PA
Fury lunges at Usyk. Pic: PA
But after Usyk landed a right hook in the ninth round it looked as if Fury was in serious trouble. The Ukrainian followed up by unloading freely but somehow the bookmakers’ favourite stayed on his feet and was saved by the bell.
Last night, Fury weighed in at 262lbs (18st 10lbs) – nearly three stone heavier than Usyk, who clocked in at a career heaviest of 223lbs (15st 13lbs).
Fury refused to look at his opponent during a news conference on Thursday, but did not back down at the weigh-in last night, where the pair almost came to blows before being separated by their entourages.
Usyk arrived into the ring first, dressed as a Cossack warrior.
Fury entered to songs by Barry White and Bonnie Tyler, with the “Gypsy King” spending several minutes dancing on stage before the song changed to Holding Out For A Hero.
Anthony Joshua watched from the ringside, knowing he could meet the winner early next year.
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UK
Brixham: Warning ‘heads are going to roll’ after water parasite outbreak – as ‘nearly every house in one close has someone ill’
Thousands of homes have had their boiling water restrictions lifted after a water tank infected with cryptosporidium was drained and cleaned, South West Water has said.
About 16,000 households in the Brixham area of Devon were told to boil their drinking water following 46 confirmed cases of the disease.
On Saturday afternoon South West Water lifted the boiling restrictions for 14,500 homes after water quality monitoring results found no traces of cryptosporidium in the Alston supply area.
Cryptosporidiosis is caused by a tiny parasite and can lead to vomiting, stomach cramps and watery diarrhoea lasting about two weeks.
More cases are expected to be confirmed due to a delay in developing symptoms – and about 100 more people around Brixham were reporting signs of it on Friday.
South West Water believes the parasite probably entered supplies through a damaged pipe in a field containing animal faeces.
A contaminated water tank at Hillhead reservoir, where cryptosporidium was detected, was drained overnight and “thoroughly cleaned” on Saturday, South West Water said.
One local resident said she knew of only four houses out of 21 in Raddicombe Close, on the outskirts of Brixham, which have not had at least one person fall ill with cryptosporidiosis.
The local MP has warned “heads are going to roll” over the incident.
Tory MP Anthony Mangnall, whose constituency includes Brixham, told LBC: “This is such a serious matter that yes, I think heads are going to roll over this.”
He claimed the supplier had been too slow to issue its safety alert.
16,000 businesses and residents are affected by the boil water notice. Pic: South West Water
Mr Mangnall said: “From starting this week with a denial from South West Water that it was anything to do with them, delaying the fact that the boil water notice came in – meaning thousands of people used the water network – to then issuing it on Wednesday, and there are a lot of people who are very ill.”
He called it an “absolutely disastrous week” and said locals were furious.
South West Water has said it’s “deeply sorry” and that it’s been “working tirelessly” to identify the source of the problem and fix it.
Bottled water stations have been set up in the area.
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Liberal Democrat leader Sir Ed Davey accused the government of not doing enough to hold water companies to account.
He told Sky News the firms were “putting profit over the environment, over public health” after multiple cases of sewage being released into rivers and seas.
“We [Liberal Democrats] wouldn’t wait for fines for pollution,” Sir Ed said.
“There should be a sewage tax on the profits of these water companies so we can get the money now.
“There needs to be much tougher regulation… and we may need to look at restructuring the whole water industry.”
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Kelly Holmes joins anti-sewage protest
It comes as dozens of protests over sewage releases were planned for Saturday.
Surfers Against Sewage is promoting “paddle-out” demonstrations at 30 locations, with Olympian Dame Kelly Holmes among those at the event in Brighton.
The confirmed cases of a waterborne disease caused by a parasite have more than doubled.
There are now 46 confirmed cases of cryptosporidiosis, a diarrhoeal illness, the UK Health Security Agency (UKHSA) has said – with more than 100 further people reporting similar symptoms in the Brixham area.
Other reported cases of diarrhoea and vomiting in residents and visitors to the south Devon town are also under investigation. Hundreds of locals have also reported feeling unwell over the last two weeks on social media.
MPs and South West Water officials have confirmed the parasite most likely entered water supplies through animal faeces, but an investigation is still ongoing.
What is cryptosporidiosis disease?
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‘Cow faeces’ infected Devon water
The UKHSA first confirmed cases of the disease at around midday on Wednesday, while locals were initially told by South West Water that their tap water was uncontaminated and safe to drink.
But after testing supplies in the Hillhead reservoir, the water company found “small traces” of the parasite cryptosporidium – which causes cryptosporidiosis – and told residents in parts of Brixham and Alston to boil their drinking water on Wednesday.
A total of 16,000 households and businesses in Brixham, Boohay, Kingswear, Roseland and North West Paignton were impacted and offered £15 compensation at first.
Over the next two days, South West Water apologised to those affected and increased the offer to £115. Amid the chaos, one primary school closed its doors on Thursday due to not having safe running drinking water.
16,000 businesses and residents are affected by the boil water notice. Pic: South West Water
‘Very hard questions for water company’
Speaking to Sky News yesterday, South West Water’s chief customer officer Laura Flowerdew confirmed it was likely a broken air valve contaminated by animal faeces that had caused the outbreak.
However, she refused to give a timeframe on how long the incident would be ongoing – leaving thousands of residents facing an uncertain future.
Speaking on Friday at the University of Exeter, Health Secretary Victoria Atkins said there will be “very, very hard questions” for South West Water over the outbreak.
“At the moment I think we probably need to give them the space to conduct their investigation; we know that they have identified the source,” she said.
“The public will want to know how on earth that source happened, what was the chain of events that led to this, because of course we all understand the expectation that we all have when we turn our taps on is that [we get] clean drinking water and we want to be able to trust it.”
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Most cases of cryptosporidiosis pass in two weeks. Symptoms include diarrhoea and vomiting. File pic: Dr_Microbe/iStock
‘Expect to see more cases’
Totnes MP Anthony Mangnall also warned the boil notice could last “at least a further six or seven days” and called for more transparency.
Professor Paul Hunter, a specialist in medical microbiology at the University of East Anglia, told Sky News if the parasite was “a continuous thing” present in water supplies for a prolonged period, then “you’d expect to see more cases” for another two weeks.
It comes as hotel owners in the area told Sky News the outbreak has led to people cancelling their stay, while a head chef said “I can’t wash salad in the sink”.
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‘Destroyed our business’
Stephen Colemansfield, owner of Redlands Guest House in Brixham, told Sky News the outbreak has “destroyed our business at the moment”.
“Our guests have cancelled because of the mixed messages that are being sent out by South West Water.”
Rob, head chef at the Steam Packet Inn in Kingswear near Dartmouth, also said his brother-in-law is one of the 46 confirmed cases of cryptosporidiosis and has been sick for two weeks.
The UKHSA is working with Torbay Council, South West Water, NHS Devon and the Environment Agency on the incident.
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