With Water Authorities introducing bans on water use, the details of what water use activities are banned can differ from area to area so it is important to know what is and is not allowed in your specific area.

​The law on hosepipe bans is contained in the Flood and Water Management Act 2010. Section 36 of this Act allows Water Authorities to ban the use of hosepipes and introduce other restrictions on the use of water if there is, or it is predicted that there will be, a serious shortage of water for distribution across a certain area. Section 49(3)(i) of the 2010 Act provides that Section 32 and Schedule 3 come into force in relation to Wales in accordance with provisions made by order of the Welsh Ministers. There is no definition or what constitutes “a serious shortage” so it is up the local Water Authority to make that determination – although they would have to justify their decision if there was a legal challenge.
 
It is important to note that Water Authorities do not have the power under this Act to impose bans on businesses. The power to do this rests with Central Government who can ban the use of water for any non-domestic purpose as they see fit. So, at the moment, there are no bans on any form of water use for businesses. However, that said, business should, as closely as possible, try to mirror the rules on domestic water use in order to play their part in conserving water and not drawing criticism for, for example, watering their lawns when neighbours are banned from doing so.

The gap between tax revenue and public spending in Wales is currently running at around £13.7bn, which is 19.4% of GDP, compared with a deficit of 2% of GDP for the UK as a whole. Our economy needs supportive measures now. In terms of timing - post pandemic, staffing, global energy costs, cost of living crisis, we need time to recover, not face further burdens from the Welsh Government and Plaid in relation to increasing taxation and unknown regulation on top of UK tax and regulation. Wales, along with the rest of the UK, is the second most highly taxed tourism industry in the world, and while most of the levers are not in the hands of Welsh Government, we ask that Welsh Government does not make the situation worse; in terms of fairness and competitiveness.

Instead, the current slew of proposals and the resulting taxation and regulation pushes more burden onto the same beleaguered businesses and individuals who are now becoming focused on retracting investment.  Our industry’s foundation is built on self-employment and seasonal jobs. The current proposals are threatening the very survival of many of those who bear the weight of the industry. For many hard-working families a small tourism business is the third vital source of income that makes rural living in Wales viable alongside part time often low paid work. There is a real danger from what appear to be un-modelled Plaid policies coupled to tick box consultations that lack weighting and engagement whilst ‘being told’, rather than ‘being listened’ too.

Without thorough economic impact assessment on each Plaid proposed change to legislature, we are likely to see substantive negative economic impact via de-investment; the closure of micro businesses and the loss of self and part time employment across Wales.

The WTA has been looking forward to building an increasingly mature and engaged relationship with Welsh Government post Covid.  Our locally-embedded small business membership is ideally placed to collaborate on a community-up, regenerative tourism industry which can be proud of the highest quality and warmest welcome at all price points.  Instead, our energy and resources are being sucked up by endless consultations rather than helping businesses find their way through these difficult times.  The hard-line policy positions arising from the Co-operation Agreement have created distrust of Welsh Government, completely undermining the more positive relationships built during the Covid Pandemic.
 
This is not where we want to be in our own relationship. While the WTA does not receive government support to be a critical friend, unlike our sister Alliances in Scotland and England, we absolutely believe a critical friend is what Welsh Government needs in this space.  It is our role to convey sentiment, informed opinion and evidence of members from all sectors of the industry and all corners of Wales:   We request that the Welsh Government:

1. Genuinely, brings together the talent and intelligence of the industry to work with them to bring a collective, credible perspective.
2. Increases and standardises the timescales for the above so that proper due process and scrutiny can be undertaken
3. Reviews the consultation process to ensure fair due process.
4. Thorough economic impact assessments on individuals and the Welsh Economy for each proposed amendment alongside a review of the combined impact of the current plethora of proposals.

We are not looking for handouts, but we are looking for the ability to create those experiential holidays for our visitors. Welcoming destinations with an open offer to come and enjoy Wales responsibly. We believe these measures could even threaten the very survival of our true icon – the unique Welsh welcome that underpins all tourism promotion produced over the last 26 years and more. The concern now is that we will start to lose those that make Wales a special place to visit, not just from hospitality and accommodation, already increasingly controlled by on-line travel agencies, but also community players. This will only leave global companies with bland homogeneity, a lack of community engagement and prohibitive UK and Wales tax arrangements.

So come on Welsh Government, let us do our jobs, we expect better.
​

The Supreme Court has published its judgement on Harpur Trust v Brazel, which has significant implications for the hospitality and tourism industry. At a very basic level, this judgement is on how businesses should calculate holiday pay entitlements for part time, part year and zero hours contract staff. Some businesses currently calculate holiday pay on what is generally called a pro-rata basis whereby, any whole week in which no pay was received is included holiday reference period for the calculation of Holiday Pay. Rather, the Supreme Court has rules that businesses should use the Calendar Week Method in which weeks in which when the employee was not working are excluded from this calculation. 
​
UKHospitality is working with its lawyers to develop a FAQ on how businesses should apply this ruling and have kindly offered to share this with Tourism Alliance members so I will send this out when it is produced.
 
https://www.supremecourt.uk/cases/docs/uksc-2019-0209-judgment.pdf
​

BEIS has produced an updated version of the PTR guidance for businesses. The new version does not change their interpretation of the legislation but it does contain more case studies on what they believe constitutes a package and what does not. However, in doing this, the revised guidance simply highlights some of the absurdities of the PTRs.

For example:

• If a person books a stay at a spa hotel and undertakes treatments when they are there, that is not a package – but if they book the treatments when they book the stay, that is.
• If a person books a table at the hotel restaurant when they book their stay, this may or may not be a package because no one knows at the time of booking how much they will spend at the restaurant and whether that will exceed 25% of the overall cost of their stay
• A package is created if the customer thinks that the “other tourism service” that the hotel provides (eg., meal, spa treatment, leisure activity, tickets etc) is an essential component of their trip, regardless of whether it less than 25% of the overall cost of the stay

 
 However, there does appear to be a change in regard to Linked Travel Arrangements with the inclusion of a new Case Study:

• A traveller books accommodation on a B&B website. Having done that the traveller clicks through to a page on the B&B’s website called “Local Attractions”. Here, the B&B owner has listed a number of recommended local restaurants, attractions, and ‘things to do’. Inspired by this recommendation, the traveller books tickets to the local theme park. This is neither a package nor a LTA as the B&B owner provided a range of useful information (rather than encouraging the traveller to book in a targeted manner).

 
This is an improvement on BEIS’s previous position which was that the accommodation provider had to provide a comprehensive list of local restaurants, attractions, etc and that providing recommended places constituted forming a Linked Travel Arrangement.
 
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1093536/package-travel-regulations-2018-guidance.pdf
​

The Welsh Government are seeking views on:
​

• completing a council tax revaluation of all 1.5 million properties in Wales to rebalance the system to reflect property values. The current system is now nearly twenty years out of date
• designing a new system of bands and tax rates that is more progressive, including considering adding more bands to the top and bottom ends of the scale if needed
• revaluing more frequently to keep council tax fairly distributed on a more regular basis.
• improving the framework of discounts, disregarded persons, exemptions and premiums to ensure the arrangements are aligned to our goals
• improving the Council Tax Reduction Scheme which provides support to low-income households.

​The Wales Tourism Alliance will be responding formally.

 
Embargo: Thursday, June 30, 2022
 
Three trade associations representing professional self-catering businesses in Wales are to meet a Welsh Government Minister to try to thrash out a solution to what they describe as “punitive” tax changes due to be introduced next April.
 
Wales Tourism Alliance, The Professional Association of Self Caterers UK and UK Hospitality Cymru have warned that the tax changes could force as many as 30% of self-catering businesses to close or sell up.
 
They hope to meet Rebecca Evans, Minister for Finance and Local Government, early next month.
 
Their mission is to “protect real Welsh self-catering businesses” as the Welsh Government proposes stricter rules on accommodation qualifying for business rates rather than council tax.
 
Currently, self-catering properties in Wales must be available to let for a minimum of 140 days in any 12-month period, and actually let for at least 70 days to qualify for business rates rather than council tax.
 
Under the new proposals, properties must be available to let for at least 252 days and actually let for at least 182 days to qualify for business rates – an increase of 160%.
 
From April 2023, a self-catering business not meeting the new threshold would incur council tax as a second home, instead of business rates. Welsh county councils will have the power to increase council tax on all these businesses by up to 300%.
 
The Welsh Government has opted to press on with the tax plans despite receiving evidence of damaging impacts from the three trade associations who surveyed more than 1,500 self-catering businesses across Wales.
 
In a joint letter to the Welsh Government, the associations say they are “hugely disappointed” that their evidence had been ignored.
 
“This all-Wales, one size fits all approach takes no account of the different kinds of businesses that operate in a seasonal Welsh tourism year,” they say. “Nor does it respond to the fact that the problem this proposes to solve does not affect the whole of Wales, something the Welsh Government has, itself, recognised.
 
“Our data shows that more than 30% of professional, local self-catering businesses will face having to sell or close because of this legislation. These are not second home owners.
 
“We are now asking the Welsh Government to formally sit down with us to review and agree what the essential and justifiable exemptions and mitigations might be, in order to ensure that real businesses are not caught in the consequences of this new threshold.”
 
The associations are asking for a transition period of two or three years to introduce the changes, up to 18 exemptions and dispensations for businesses carrying out repairs and refurbishment, property improvements or being forced to close due to ill-health or caring responsibilities.
 
They also want self-catering businesses to have an appeal process against the 182-day threshold in exceptional circumstances.
 
They raise important questions about how councils plan to tax properties that it currently doesn’t know about, such as those relying solely on online listings with global companies.
 
Other queries surround how letting days will be calculated, what is the commercial rate for letting a property, Council Tax rating on businesses with multiple units and taxing pop-up businesses.
 
ends
 
Notes for Editors:
 
The exemptions the three associations are calling for are:
 
1/ Properties that are limited by planning permission to only be short term commercial lets.
2/ Properties that lie within the curtilage of an owner’s primary residence.
3/ Owners who have multiple units on one site, (e.g., a holiday cottage complex) can average occupancy across the units.
4/ Farm diversification businesses.
5/ Where the units are not housing stock withdrawn from the market but can be proved through recorded planning and building control that they have been created from vacant commercial or agricultural buildings.
6/ Exemptions for cottage businesses that are in effect "small resorts" or complexes. Sites that have multiple units on site owned by the same person, where facilities are provided for and shared by those staying on site. For example, if have pools and games rooms, gyms, a play area, coffee shops. The practicalities (or even the ability) to actually split a business where some cottages would meet the new 182-day criteria and others wouldn't, would be basically impossible.
7/ Where the property is run by a charity.
8/ Weeks given by owners to raise money for charities should count towards days let, max two weeks per year (Either for Charitable status or Not for Profit).
9/ Where the accommodation is a supplementary part of a bigger business, events, weddings etc.
10/ If your short-let business is VAT rated
11/ Formal review of 182 days if Wales officially goes into recession.
12/ Pandemics or forced local closure
13/ Period of grace for new business entrants who would not get to 182 days in the first crucial years
 
The Wales Tourism Alliance (WTA) represents around 7,000 businesses in all sectors of tourism industry across Wales. www.wta.org.uk .
 
UK Hospitality Cymru’s members employ around 140,000 people directly in the hospitality industry in Wales and a further 40,000 supply chain employees indirectly.
www.ukhospitality.org.uk
 
The Professional Association of Self Caterers UK is the largest association representing the professional self-catering sector in England and Wales. It has more than 1,300 members and represents more than 50,000 letting properties. www.pascuk.co.uk
 
For more information, please contact:
 
Wales Tourism Alliance
Chair: Suzy Davies
Tel: 07540 964678
Email: suzy@wta.org.uk
 
The Professional Association of Self Caterers UK
Chair: Alistair Handyside, MBE,
Tel: 07771 678028 
Email: chair@pascuk.co.uk
 
UK Hospitality Cymru  
Executive Director for Wales: David Chapman
Tel: 07753 752084
Email: dchapman@ukhospitality.org.uk 
​

Vaughan Gething, Minister for Economy, 7 July 2022:

'As we approach the main summer holiday period, and in the context of requests for additional marketing support at this time from many of our industry stakeholders, I’m pleased to be updating Members on activity currently being delivered by Visit Wales. Implementation, under the Cymru Wales brand, will build on the work already in place, to further assist businesses in their post pandemic recovery.

From a fresh marketing campaign, “Croeso,” to tools that will help operators enhance their own promotion and skills, the range of work has been put in place to support the tourism and hospitality sectors that play such significant roles within the wider Welsh economy. This month, the Croeso campaign, using the Cymru Wales brand and its focus on landscape, culture and adventure, is showing those currently considering a break the diversity of experiences on offer in Wales this summer.

Welsh Government wants to see a thriving industry and a strong recovery from the pandemic across these sectors that together represent more than a tenth of the Welsh workforce. We are fully aware that there are both short-term and long-term challenges facing businesses, such as the cost-of-living crisis, energy costs and skills and recruitment gaps and this work has been planned to help keep Wales visible as a potential holiday destination for this year and beyond, stimulating consumer interest and encouraging booking enquiries'.
​
Read the written statement in full on: Written Statement: Croeso activity to support the tourism and hospitality industry (7 July 2022) | GOV.WALES.

There will be a full Consultation during the forthcoming academic year. Jeremy Miles, MS Minister for Education and Welsh Language has 'set the scene'!

• ‘I also recognise that whilst there is reasonable contentment with the current school year, after discussion and being shown different potential school year models, a majority of the education workforce and around half of learners opted for an alternative model’.

Difficult to tell what the impact might be of any such changes or to know the potential scope of the Consultation until it is published. However, two points for earliest consideration.

• 1/ What would the impact be on Tourism in Wales if it had substantially different holiday dates than the rest of the UK?

 

• 2/ What period of notice of any change would be given? Many book holidays a long way in advance and knowing dates of holidays are critical in setting pricing.

Whilst we should never say that anything should not be reviewed and there may well be better ways to adjust terms and holidays, but at a time of such huge Government led change for the self-catering sector in Wales, this just adds to the uncertainty and makes long term planning really difficult.