CABINET SECRETARY for the Economy, Ken Skates, has highlighted the achievements and issues faced by the automotive sector in Wales during his keynote speech at this year’s Autolink event.
Organised by the Welsh Automotive Forum (WAF) and supported by Welsh Government, Autolink is the premium automotive business to business event in Wales.
Ken Skates said: “These days, it seems the automotive sector is rarely out of the news headlines.
“We find ourselves talking about a host of subjects, from the unknown impact of Brexit and the associated effect on investment and car sales, to the need to improve air quality fuelling issues such as the debate over the future of the diesel engine, use restrictions in city centres and the uptake of alternatively fuelled vehicles. Not to mention being asked to consider the development of autonomous vehicles and what they mean for future car ownership and personal mobility.
“With these issues and more creating uncertainty, it is right we should come together to put the spotlight on the sector in Wales.”
Autolink 2018 will consist of around 200 attendees including 50 exhibitors drawn from the Welsh based automotive supply chain, representatives from vehicle manufacturers and Tier 1 suppliers (companies supplying components directly to the chain’s original equipment manufacturer), academia and visitors from the wider supply chain community.
Ken Skates continued: “There are many topics open to discussion here – free movement of goods and people and the absence of tariff and non-tariff barriers, the Welsh Government’s Economic Action Plan, reducing carbon emissions. I could go on.
“Here in Wales, we have strengthened our commitment towards reaching our own emission reduction targets. Our Environment Act sets out a clear decarbonisation pathway for Wales within the context of our existing UK and international obligations, with a reduction in emissions of at least 80% by 2050.
“Decarbonisation has a significant place in our new Economic Contract which is part of our innovative Economic Action Plan. This will see a new way of working with businesses to create wealth, jobs and wellbeing.
“Change and a degree of uncertainty are part of the environment with in which we all operate. To prosper, we must all adapt to that new environment.”
Welsh Government releases additional £100M business support
|The latest phase of the Welsh Government’s Economic Resilience Fund has benefited from the release of a further £100million from ministers within 72 hours of launch, due to a massive demand.|
|More than 6,000 grant applications from small and medium sized businesses and social enterprises were received within 24 hours of the launch on Friday – an unprecedented response, revealing the scale of the challenges facing Welsh businesses.|
The Fund aims to complement and fill the gaps left by UK Government schemes such as the Job Retention Scheme, with grants of up to £10,000 for micro-enterprises and up to £100,000 for SMEs and a light touch appraisal system designed to get money to businesses with the minimum of delay – as well as a new loan fund administered by the Development Bank of Wales.
Less than three weeks since the First Minister announced the intention to create the Fund, the Welsh Government has released a further £100 million, taking the grant fund to £300 million. This will supplement this latest phase of support, providing non-repayable grants to microbusinesses, SMEs and those large businesses of critical, social or economic importance to Wales.The Fund has been warmly received by trade union and business organisations, with the Institute of Directors calling it ‘very welcome news for business owners and managers who are desperate for all the help they can get at this difficult time’. The South and Mid Wales Chambers of Commerce has called ‘the rapid response to date’ of the Welsh Government in supporting the economy of Wales ‘impressive’. The Wales TUC welcomed ‘additional funding to address the gaps’.Minister for Economy, Transport and North Wales Ken Skates said: “We knew that even with the help offered by initiative such as the Job Retention Scheme, there was a massive need for quick access to grant funding if Welsh businesses were to survive this unprecedented economic shock. Whilst in order to make the scheme quick and simple we needed to take tough decisions over eligibility – like requiring businesses to be registered for VAT as a way of having to check on their trading history – it is clear from the level of response received that the Economic Resilience Fund is plugging a gap in UK Government support and providing much needed financial reassurance to many businesses at this challenging time. We will continue to review support and consider how we can develop it over the coming days.“The rate of applications has been massive and unprecedented. This is the second time in a matter of weeks that access to Welsh Government funds aimed at easing cash flow pressures for Welsh business have quickly reached capacity, and we have responded with pace to release a further £100m into this phase of the fund.“In these difficult and demanding economic times we have worked hard to free up resources to create such a large Fund despite the huge demands on our budget, and to strike a balance between supporting as many enterprises as possible and making a meaningful contribution to each one’s survival, as well as asking each recipient to sign up to the principles of the economic contract.“Though we applaud much of what the UK Government has done, there is an urgent need to see more of the promised lending guaranteed by the UK Government getting to the front line. The UK Government must continue to support and press the high street banks to be much more responsive to the needs of our businesses at this difficult time.”
Finance Minister Rebecca Evans said: “The Economic Resilience Fund is part of more than £2bn of support that we have made available to help businesses and charities during these incredibly difficult times.“We know that support for business is crucially important but whilst we are doing everything we can in Wales to plug any gaps and provide the best possible financial support to businesses, it is clear there are further steps that the UK Government needs to urgently take.”The Economic Resilience offers financial support to help businesses, charities and social enterprises deal with the coronavirus crisis and will be vital in helping organisations manage cash flow pressures. It is a unique additional funding stream for Wales and was designed to address gaps not currently met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.The first stage of the Fund saw the £100 million Development Bank of Wales’ loan scheme fully subscribed in little more than a week. Applications are currently being processed and some businesses have already received funding. It is anticipated that the Development Bank will have processed all applications received within the month.To ensure that money reaches businesses as quickly as possible more than 120 additional Welsh Government and Business Wales staff have been diverted onto processing applications and supporting businesses and organisations in this latest stage of the Fund.
|Contact InformationRobert Owen0300 0252 058Robert.Owen009@gov.wales|
|Notes to editorsIn response to this news:|
Robert Lloyd Griffiths, Director of IOD Wales said: “Today’s announcement by Welsh Government will come as very welcome news for business owners and managers who are desperate for all the help that they can get at this difficult time. It is particularly pleasing that it follows the announcement last week by UK Government that the furlough scheme has been extended as called for by the IoD.”
Heather Myers, CEO, South and Mid Wales Chambers of Commerce said: “The Welsh Government has made significant efforts to support the business and industry of Wales, creating packages of funding that will help get much needed cash into very many businesses.
“We have been in regular contact, explaining the issues that businesses face and the areas of distress where they need urgent help. The Economic Resilience Fund, The Small Business Rates Relief and the range of support from the Development Bank of Wales shows that Welsh Government Ministers have been listening.
“Whilst there are still gaps in funding, which we will continue to identify, the rapid response to date to support the economy of Wales has been impressive.”
Ian Price, CBI Wales Director said: “The CBI welcomes today’s allocation of a further release of £100m from the £500m Economic Resilience Fund, announced by the Welsh Government on the 30th of March. Welsh firms of all sizes and all parts of our nation are facing unprecedented challenge as they respond to the social, economic and health impacts of the coronavirus. Similar to the support provided by the UK Job Retention Scheme, Welsh businesses will be keen to receive these funds in their bank accounts so they can continue to support their staff, secure their business and plan for the post-Covid economy.”
Shavanah Taj, General Secretary of Wales TUC said: “Despite the UK Government’s relief package, we know that some employers are still unable to readily access the funding they need to survive this deepening crisis.
“We welcome this additional funding to address the gaps, as well as Welsh Government’s ongoing commitment that this will be going to employers that are delivering fair work and a safe environment for their workforce.”
Business Wales delivers vital support
MORE than 20,000 jobs have been created since April 2015 by enterprises that have received support from the Welsh Government’s flagship Business Wales service, Economy Minister Ken Skates has revealed.
Business Wales makes it easier for Welsh micro-businesses and small and medium enterprises (SMEs) as well as aspiring entrepreneurs of all ages to access the information, advice and support they require to start and grow their businesses.
In addition to helping Welsh enterprises create more than 20,000 new jobs since April 2015, the service has handled over 60,000 enquiries and advised over 30,000 individual entrepreneurs and firms across Wales. It has also helped Welsh entrepreneurs create more than 4,000 new businesses across Wales with an impressive four year survival rate of over 80 per cent.
The Welsh Government continues to proactively support entrepreneurs at each stage of the business lifecycle from raising awareness of entrepreneurship with more than 200,000 primary school pupils right across Wales through to idea generation, start-up and on to sustainable growth.
In November, the Economy Minister announced proposals to build on Business Wales’ success to ensure its high quality is maintained and developed so even more firms and entrepreneurs can benefit from the service.
This includes how the service can prepare businesses for what the economy will look like after Brexit.
Business Wales also has an increasingly important role in supporting firms to rise to the challenges set out in the Welsh Government’s Economic Action Plan of preparing for digital developments, improving productivity, increasing the incidence of fair work, decarbonising and promoting inclusive growth.
Ken Skates said: “As we enter the New Year, it’s fabulous news and a great achievement that our flagship Business Wales service has supported the creation of more than 20,000 jobs since April 2015.
“That’s 20,000 people given an opportunity to work, earn a wage, make a living and help drive a productive Welsh economy. I am delighted we, as a Welsh Government, have played our part in helping Welsh entrepreneurs and SMEs to make that happen.
“Although 92 per cent of Business Wales customers say they would recommend the service to a friend, we’re certainly not resting on our laurels and I’m already looking at ways Business Wales can directly support more firms and entrepreneurs over the coming years.
“Small and medium-sized businesses are the backbone of the Welsh economy and vital to our economic outlook and the way communities throughout Wales operate from day-to-day.
“We will continue to support our SMEs and be on hand to provide the high-quality information, advice and guidance they need to thrive.”
Last remaining council owned shop in Llanelli Town Centre
Here is an opportunity to start the New Year in business – grab the last remaining council owned shop unit in Llanelli Town Centre.
Number 3 Cowell Precinct – most recently occupied by Clair Adams Schoolwear – is up for rent and is in a prime town centre location.
The ground floor unit is available at an affordable rent of just over £650 per month and coupled with reduced business rates being offered by the Welsh Government under its business rate relief scheme, it offers an attractive package to those thinking of opening up shop in Llanelli.
Retail space is approx 133.5 sqm and benefits from a main sales area with additional raised area with store room, WC and rear access. Front entrance is within Llanelli Indoor Market Precinct. The lease will be for a term of at least five years.
Almost £5million has been spent buying town centre properties from private ownership to renovate and offer to businesses at an affordable rent, and all but one council-owned property in the main shopping streets of the town are currently occupied.
Carmarthenshire County Council Cllr Leader, Cllr Emlyn Dole said: “We have acquired many properties from private ownership in the last couple of years. In doing so, we now have control over more business premises which allows us to set an affordable level of rent that will help new businesses to establish and sustain themselves. Many people are under the misconception that the council own all properties in Llanelli Town Centre – this isn’t the case and many are owned privately and over which we have no control.
“We continue to encourage private landlords and owners to make better use of town centre buildings by offering grants and loans as part of a range of incentives, including simpler planning rules to speed up the process for investors and developers.”
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