The Cost of Inefficiency: How Council Tax and Poor Services Are Strangling Pembrokeshire’s Small Businesses

Small businesses are facing a storm that’s more bureaucratic than meteorological.

In the picturesque county of Pembrokeshire, known for its rugged coastline and charming market towns, small businesses are facing a storm that’s more bureaucratic than meteorological.

From Fishguard to Pembroke Dock, local entrepreneurs are voicing a growing frustration: rising council tax bills paired with lacklustre public services are making it increasingly difficult to survive, let alone thrive.

The Weight of Council Tax

Council tax in Pembrokeshire has seen consistent increases over the past five years. In 2024, Pembrokeshire County Council approved a 7.5% rise in council tax—the second-highest in Wales. For many local businesses operating from small premises or home offices, these increases are pushing margins to the brink.

Sarah Griffiths, who runs a handmade jewelry shop in Narberth, says, “My council tax bill has gone up by nearly £400 in three years. At the same time, the street cleaning has become less frequent, the bins are often overflowing, and don’t even get me started on the potholes outside my shop.”

Poor Services, High Expectations

Council services—critical for the smooth operation of any high street or industrial estate—have deteriorated, according to numerous business owners. Late waste collection, limited street maintenance, and under-resourced planning departments are just a few of the recurring complaints.

In Haverfordwest, Ian Davies, owner of a small café near the town center, recounts a week where food waste collection was missed twice. “We had to store bags in the back for days. Customers noticed the smell. It was embarrassing and totally out of our control.”

Meanwhile, delays in business planning applications are stalling growth. A local builder in Milford Haven, who wished to remain anonymous, described waiting over six months for a routine extension approval. “I lost two contracts because I couldn’t guarantee timelines. The council’s planning department is underfunded and overwhelmed.”

The Ripple Effect on the Local Economy

According to data from the Federation of Small Businesses (FSB), nearly 1 in 5 small business owners in Pembrokeshire cited local council inefficiency as a key barrier to growth in 2024. The Pembrokeshire County Council budget report for 2023-24 noted that while spending on adult social care and education increased, funds for economic development and small business support were reduced by 12%.

As small businesses are the backbone of Pembrokeshire’s economy—accounting for approximately 88% of all local enterprises—their struggles ripple out. When local shops close, high streets hollow out. When builders delay, housing developments stall. When cafés cut hours, jobs disappear.

A Cry for Change

Many entrepreneurs believe the situation is avoidable. They argue that better allocation of resources, more transparency in council spending, and genuine engagement with the local business community could transform the economic climate.

Emma Llewelyn, who runs a holiday cottage rental agency near St Davids, suggests, “What we need isn’t just lower taxes. We need fair taxes with fair services. The council has to understand we’re partners, not piggy banks.”

The message from Pembrokeshire’s business community is clear: while council tax is an accepted necessity, its value must be reflected in the services provided. Without urgent reforms, there’s a real risk that the county’s vibrant small business scene could falter—leaving both the economy and the community worse off.

The council now stands at a crossroads: invest wisely in the community that fuels Pembrokeshire’s prosperity, or continue a path that may drain the very lifeblood of its towns and villages.