A disheartened shopkeeper has spoken on behalf of an entire community when expressing concerns about his “dying” town. Not long ago, Pwllheli was a gem of the Llŷn Peninsula, but now locals and tourists say it looks like a “ghost town”.
Every year, millions of holidaymakers travel through the coastal gateway town, but fewer are pausing as businesses close down. Long-standing caravan owners have abandoned the area, and visitors who take a look say they’ve been “shocked” by the decline.
“Even half the charity shops were shut when I visited,” one woman said online. Stay in the know by making sure you’re receiving our daily newsletter.
Businessman Gavin Nicholas recently shared a dozen photographs of properties from a single street that were, until recently, occupied by local businesses. A few years back, Gaol Street was a bustling hub with approximately 30 shops: today just eight survive.
As Mr Nicholas battles constantly increasing costs and business rates, his frustration was mirrored by celebrity potter Keith Brymer Jones. His renovation of Pwllheli’s derelict Grade II-listed Capel Salem, situated just above Gaol Street, was featured in the three-series Channel 4 documentary Our Welsh Chapel Dream, reports North Wales Live.
Keith Brymer Jones, pictured in his Salem Chapel studio, said the lack of support for small independents in Pwllheli was ‘incredibly short-sighted'(Image: Patch Dolan/Channel 4)
He wrote online: “The business rates are killing the High Street. It’s not rocket science. There are other places with reduced business rates to encourage and breathe life back into high streets……and what happens …….it does!
“It’s incredibly short-sighted not to support small independent businesses. It’s what makes a place unique, interesting, and ultimately brings in visitors!”
On social media, a local business owner has revealed her regret at opening a shop in a town experiencing rapidly dwindling footfall. With mounting frustration and anger amongst residents, the town’s mayor – who was also compelled to shut her own premises – has vowed to make the issue a priority at the forthcoming town council meeting.
Another of the shops on Gaol Street(Image: Gavin Nicholas)
Recently revealed striking murals in the former market town have been warmly received but haven’t managed to dispel the gloom. Worried that Pwllheli is “dying on its feet.”, locals have demanded cheaper and more convenient parking facilities.
Others have lamented the emergence of out-of-town retailers such as Aldi or pointed the finger at Pwllheli’s Asda for overpowering independent traders.
Some are calling for a comprehensive town centre reimagining with support for local enterprises and draw attractions like a food hall. Many are scathing of “anti-tourism” policies for discouraging affluent visitors and siphoning money away from the town.
Mr Nicholas, 48, operates TE Hughes, a century-old Pwllheli enterprise selling blinds, curtains and paint. Having been employed there for six years, he assumed ownership of the shop a decade ago and vividly recalls when Gaol Street was “bumper-to-bumper” with a diverse array of offerings.
He explained that the cost-of-living crisis combined with government policy is having a damaging impact on his own enterprise. Not only has the business been compelled to reduce staff numbers – dropping from seven to two – but closing time has been moved forward to 2pm as “we simply can’t justify the extra hours”.
In a social media post accompanied by a “feeling frustrated” emoji, he wrote: “When will this attack on small businesses and hard working people end? Something has to change immediately to rescue what is left. How can we keep getting punished and expect to continue?”.
The post sparked a substantial response, with locals recalling the “beautiful” town they’d lost and visitors expressing dismay at Pwllheli’s swift decline.
In April this year, TE Hughes was moved into the highest banding for business rates, meaning it no longer qualifies for any relief. The decision overlooked the down-sizing: more than half of the premises now sits empty.
Appeals to the UK Valuation Office Agency proved fruitless. “We’re being charged like we’re one of the big supermarkets,” its owner protested.
Simultaneously, overheads are escalating and customers are struggling financially. Minimum wage and National Insurance rises are another burden – Mr Nicholas calculates minimum pay costs now total around £20-an-hour.
Unable to hire staff, he’s working himself to exhaustion simply to keep the business viable. Numerous others have abandoned the effort.
“On our street the newsagent recently become a homeless shelter for young people,” he said. “A coffee shop that had been here for years and years has closed – that used to bring a lot of people to the street.
“A popular shoe shop has closed – it’s owner said it was no longer worth it. Instead she’s focusing on her other shop in Aberdaron (a former fishing village on the tip of Pen Llŷn with less than a quarter of the population).
“She said he was more viable than Pwllheli, which just goes to show. Two clothing stores have gone from the street, Lloyds Bank on the corner…. the list goes on.”
An aerial view of Pwllheli marina
Opponents of business rates contend they hinder productivity, dampen entrepreneurial spirit and, in the end, damage local communities. Regardless of whether customer numbers drop or income decreases, bills can climb simply due to rising property valuations.
Consequently, many small independent retailers are taxed according to their premises size, rather than the commercial challenges they encounter.
Transitional support in Wales can provide some respite, and a new retail multiplier has been acknowledged positively. Nevertheless, bills continue to escalate: most severely affected in the 2026-27 Welsh Government budget were pubs, music venues and restaurants – to such an extent they received an additional 15% relief to offset mounting expenses this year.
Mr Nicholas argued the system is stifling ambitions and throttling opportunities. He’s calling for a fundamental overhaul of business rates for small firms so that enterprise is fostered and economic growth is nurtured.
Currently, entrepreneurship is being punished and communities are bearing the consequences, he said.
“People are getting angrier and more frustrated,” he said. “There’s little incentive to work hard any more as every single penny is being taken away from you.
“It’s a perfect storm that’s not just affecting Pwllheli but also places like Bangor and Caernarfon. We have to do something to get businesses back open again.
“People say it’s not worth going into town as there’s nothing for them any more. This collapse has been happening for years. We need to start lighting a fire inside ourselves and start fighting for what we believe in.”
Mr Nicholas worries High Street pressures are having far-reaching consequences on society. “The lack of money around is forcing people to buy cheaper or shop online and that’s having a wider societal effect.
“I see it in the phone calls and texts we get – the tone has become angrier because people feel they are being squeezed from all sides and no one will listen to them.
“A lot of people who come into the shop just want someone to speak to because they’re feeling more isolated. Some thank us just for being there and listening. Independent shops offer a point of human contact for many and this mental health aspect is what’s being lost. “
Just two years ago Gaol Street, with Salem Chapel in the distance, was much busier. Its subsequent decline mirrors what’s happening in town centres across North Wales(Image: Google)
A substantial portion of business at TE Hughes has vanished since Cyngor Gwynedd started targeting second homes and holiday lets, according to Mr Nicholas. As their proprietors typically commissioned annual refurbishments, demand for paint and related products has declined since heavily taxed owners started leaving the county.
A Cheshire caravan owner, who’s been holidaying near Pwllheli for 32 years, suggested other factors were also contributing. He maintained an exodus was taking place as people grow weary of extended journey times and even Wales’ 20mph speed restrictions.
“We gave up in March,” he said. “My boat is also up for sale and will probably also leave the area. This is happening quite a bit now, regular visitors walking away, taking the cash they inject to the local economy with them.
“The £20k I spent a year in Pwllheli supporting caravan site jobs, the boat yard, the shops, the pubs, the takeaways, the ice cream shops, the petrol station, the marina etc has gone. I don’t see a big queue of people to replace it either.”
Internet-based retailers, frequently benefiting from advantageous tax arrangements, bear some responsibility for eroding town centres throughout Wales and the UK. Nevertheless, despite its challenges, Pwllheli still possesses considerable appeal.
Alongside support for independent enterprises, residents and tourists desire improved access to the town’s shops and attractions, from more affordable parking to enhanced signposting. Pedestrianisation has also been suggested, featuring outdoor dining and the creation of a “Wow factor” to entice visitors.
Online, an Altrincham caravan owner and regular visitor said Pwllheli still holds “SO much potential”. She said: “I absolutely love the little town. It’s a lovely place and it’s so sad to see the number of empty, beautiful commercial premises.
“We visited Abersoch for the first time last week and I honestly don’t get what the fuss is about – how is it become ‘the place’ to visit. I much prefer Pwllheli and have loved discovering and supporting its local businesses.”
Inaction is not regarded as a viable option. One woman warned that the alternative was to simply stand back and “watch Pwllheli town centre die”.
Last Tuesday, the council hosted a drop-in event for Pwllheli’s high street businesses, aimed at highlighting the support on offer, ranging from funding and recruitment through to regulation and local opportunities.
In 2024, the local authority drew up a placemaking plan outlining its vision for the town. Key priorities included improvements to the public realm along the High Street and the North Quay waterfront.
The latter, a vital link between the town centre and Pwllheli Marina, was also identified as having “significant potential” for retail, leisure and hospitality development as a “waterfront destination”.
The long-mooted idea of pedestrianising the High Street also re-emerged, with plans for a six-month trial of partial pedestrianisation stretching from Market Square to Stryd Moch. Further details can be found here.
Commercial property owners in Pwllheli town centre (and Bangor) are now eligible to apply for a council improvement grant ranging from £2,500 to £10,000. The grant will cover up to 70% of the costs associated with enhancing building exteriors and signage, with the overarching goal of rejuvenating the town centre and making it “lively, appealing, and attractive to all”.
A council spokesperson said: “Like many high streets across the UK, Pwllheli town centre has experienced challenges in recent years. Cyngor Gwynedd fully recognises these challenges and, alongside a number of stakeholders, is actively working to develop new initiatives.
“The placemaking plan notes several projects which focus on revitalising the high street by making it a more attractive, accessible, and a vibrant place for residents and visitors alike.
“Over the past three years, Cyngor Gwynedd has distributed over £3m in business grants to improve the resilience of local enterprises. Cyngor Gwynedd has also recently adopted a new Economic Strategy for Gwynedd to identify priorities for strengthening the economy and ensuring that a variety of jobs in different sectors are available to sustain our communities.”
Cyngor Gwynedd further stated: “The council provides a range of business support activities and is currently seeking funding to help businesses become more resilient in the current economic climate.”
The local authority clarified that business rates are calculated using two components – the property’s Rateable Value and a multiplier. The former is established by the HMRC Valuation Office, while the latter is determined by the Welsh Government.
The council’s responsibility is to collect these rates on the government’s behalf. Any business with queries concerning their non-domestic rates bill is encouraged to get in touch with the council at trethiannomestig@gwynedd.llyw. cymru or by telephoning 01286 682709 / 01286 682772.
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