Business
Steel troubles ‘suggest core industry crisis’
PLAID CYMRU’s Shadow Economy Minister Rhun ap Iorwerth has warned that the current crisis in the steel industry is an indicator of potential problems across Wales’ foundation industries. Rhun ap Iorwerth warned that the steel industry’s troubles were a ‘canary in the mine’ warning of deeper problems across a range of core industries. Figures highlighted by Plaid Cymru show decline in the turnover in some of Wales’ core industries, such as the chemical industry and the production of basic metals. Total GVA of the Foundation Industries in Wales has declined by 39% in recent years – from £2.8 billion in 2008 to £1.7 billion in 2013.
Rhun ap Iorwerth called on the Welsh Government to take action to help industries combat high energy costs, and also says said Governments should look for maximum flexibility in the use of EU procurement rules. Plaid Cymru’s Shadow Economy Minister Rhun ap Iorwerth said: “Rising energy costs, competition from global markets and a lack of support from both the Welsh and UK governments have left Wales’ steel industry vulnerable. But these problems are not exclusive to steel, and we should view the problems in the steel industry as a canary in the mine warning for all of Wales’ core industries.
“Figures show that the threat to our economy runs far deeper than steel, but affects the range of industries that our economy is built upon. This includes the chemical industry, other metals, and wood products. Wales’ foundation industries have witnessed a steep decline of almost 40% since 2008. “We need to take action now before it’s too late. We know that high energy prices for industries are a problem, and we need to explore how we can reduce these costs. But UK governments should work with the EU to ensure maximum flexibility in use of procurement legislation so that they can better protect British industry.”
A Welsh government spokesman said: “We have raised with the UK government over several years our concerns about the impact high UK energy prices are having on the competitiveness of our industries and again call on them to address this major problem. “The economy minister has setup an industry-led task group to gather examples of good procurement practices and to identify support other EU countries have provided to their steel industries.”
Business
Crown Estate invests in Welsh offshore wind projects
THE CROWN ESTATE has allocated funding to four Welsh organisations in the first round of its £50 million Supply Chain Accelerator programme, aimed at advancing the UK’s offshore wind sector. Across England, Wales, and Scotland, 13 organisations have received a share of £5 million to support early-stage supply chain projects.
The Welsh projects will contribute to the development of floating wind platforms, operations and maintenance facilities, and skills training. The funding is expected to unlock over £9 million in immediate investment, with the potential for £400 million in future capital expenditure. These initiatives align with The Crown Estate’s Celtic Sea Blueprint, which forecasts 5,300 new jobs and a £1.4 billion economic uplift through the deployment of floating offshore wind capacity in the region.
The Welsh recipients include:
- Marine Power Systems Ltd.
- Neath Port Talbot Group of Colleges (subject to contract)
- Pembrokeshire College (subject to contract)
- Tugdock Ltd.
Catalyst for change
Ben Brinded, Head of Investment at The Crown Estate, described the funding as a pivotal step for the UK’s renewable energy goals:
“This is a significant moment for The Crown Estate as our first funding into the UK’s offshore wind supply chain. We are fostering collaboration with industry and government partners to catalyse net zero, restore nature, and drive economic growth. The Supply Chain Accelerator is a vital step in maturing propositions that attract public and private investments.”
Welsh Secretary Jo Stevens welcomed the funding as “an important boost to build local jobs and skills in South Wales,” highlighting that floating offshore wind technology provides cheaper energy and creates future-proof jobs.
Rebecca Evans, Welsh Government Cabinet Secretary for Economy, Energy, and Planning, echoed these sentiments, emphasizing Wales’ ambition to generate sufficient renewable energy to meet its own needs by 2035.
Expanding potential
The Crown Estate, which oversees the seabed around England, Wales, and Northern Ireland, launched the £50 million Supply Chain Accelerator fund earlier this year. With £45 million earmarked for future rounds, the programme aligns with the UK’s Industrial Growth Plan for offshore wind, aiming to unlock more opportunities in the renewable energy sector.
About The Crown Estate
The Crown Estate is a business mandated by Parliament to manage a £16 billion portfolio that includes offshore wind assets, urban centres, and rural holdings. Profits from its operations, totaling £4 billion over the past decade, are returned to HM Treasury.
Business
How the FCA’s new crypto regulations will affect the industry
The Financial Conduct Authority (FCA) has introduced sweeping new rules aimed at regulating the cryptocurrency sector in the UK. These changes are intended to align crypto businesses with traditional financial standards and increase consumer protection. While the industry continues to expand, these regulations are already reshaping how crypto firms operate in the UK.
The growing role of cryptocurrency in everyday life
Cryptocurrencies are no longer confined to niche communities or speculative investments. They are now deeply integrated into major industries, including finance, technology, and retail. In finance, digital currencies provide investors with an alternative asset class. Blockchain technology, which underpins cryptocurrencies, has become a cornerstone for secure data management in the tech sector.
In industries like iGaming, cryptocurrencies have been widely integrated. For instance, they now represent a whole category of online casinos that provide local players with an option to experience less restrictive sites than the ones regulated by the UK Gambling Commission. With stringent rules on things like betting limits to the mandatory nature of the GamStop program, many players now feel UKGC-regulated platforms are too stifling.
According to iGaming expert Chris Jackson, offshore crypto casinos provide alternative options that aren’t subject to the GamStop program. Among them, the best non GamStop casinos UK players can register with offer a wealth of unique benefits. Between enabling faster payouts, better gaming libraries, and no-KYC registration processes, using crypto as a payment method has truly revolutionised this industry.
On the other hand, many retail businesses have also started to embrace digital payments, offering customers the convenience of using cryptocurrencies to purchase goods and services. This trend is accelerating as people grow more comfortable with digital currencies, highlighting their role in transforming traditional payment methods.
The FCA’s stringent regulatory framework
The FCA’s new regulations mark a significant shift for the UK’s cryptocurrency sector. The rules require firms to meet higher capital standards, ensuring they can cover potential losses. In addition, measures to prevent insider trading and market manipulation are now in place, reflecting the FCA’s commitment to improving market integrity.
Firms must also adhere to stricter rules on custody, safeguarding client assets, and implementing risk management practices. These changes aim to enhance transparency and build trust in the crypto market. The FCA’s approach signals that it wants to ensure cryptocurrency transactions are as safe and reliable as those in traditional financial markets.
The impact on crypto firms
The regulations are creating significant challenges for businesses operating in the crypto sector. Many companies are facing higher operational costs as they adjust their systems and processes to comply with the new standards. Some firms, particularly smaller ones, are struggling to meet the requirements and may decide to leave the UK market altogether.
While larger firms are better equipped to adapt, even they are experiencing increased compliance burdens. The FCA has made it clear that these measures are necessary to protect consumers and uphold market stability, but the short-term effects on businesses are considerable.
Balancing consumer protection and innovation
At the heart of the FCA’s regulatory push is the goal of protecting consumers while promoting a fair and transparent crypto market. The new rules address concerns over financial crime, with firms required to implement robust anti-money laundering controls.
Transparency is also a key focus, with businesses needing to provide clear and accurate information to customers about their operations. These measures aim to foster trust and stability in a market that has faced criticism for its lack of oversight.
However, the FCA’s challenge is to strike a balance between safeguarding users and allowing the industry to innovate. Many in the crypto community fear that overly stringent rules could stifle growth and push businesses to relocate to more lenient jurisdictions. Striking this balance is no small task, as regulators must consider both the rapid pace of technological advancement and the need for robust consumer protection frameworks.
What lies ahead for the crypto industry
The future of the UK’s cryptocurrency industry will depend on how effectively the new regulations are implemented and how the market responds. The FCA has signalled that it will continue refining its approach, with further consultations on consumer protection and market abuse planned for 2024 and 2025. These initiatives highlight a commitment to ongoing dialogue and adaptation as the crypto landscape evolves.
The UK government has also expressed its ambition to position the country as a global hub for digital assets. For this to succeed, regulators and industry players will need to work together to ensure that innovation is not hampered by excessive oversight. Collaboration between policymakers and businesses will be key in fostering a regulatory environment that supports growth while addressing risks.
The coming years will be crucial in determining whether the UK can maintain its leadership in the evolving world of cryptocurrency. The stakes are high, but with a measured approach, the UK has an opportunity to set a global standard.
Business
£335m to support Welsh businesses unveiled by the Welsh Government
A £335 million package to help businesses with their rates bills in 2025-26 was unveiled by the Welsh Government today (Dec 11), including continued support for retail, hospitality, and leisure businesses for the sixth consecutive year.
As the Draft Budget was published this afternoon, Cabinet Secretary for Finance, Mark Drakeford, highlighted Welsh Labour’s commitment to economic growth, job creation, and decarbonisation. Key funding allocations include £144 million for all-age apprenticeships and an extra £6.5 million for the Flexible Skills programme, focusing on sectors linked to green growth.
The Draft Budget prioritises record investments in flood prevention and coal tip safety. This includes an additional £25 million for 2025-26 from the UK Government, complementing the £65 million coal tip safety programme running from 2021 to 2025. The publication coincides with the introduction of a new Coal Tip Safety Bill.
Key highlights of the budget include:
- £88 million in capital funding for city and growth deals.
- £23 million to develop employment sites and property to create new jobs.
- £5.15 million to support Trydan Gwyrdd and local energy plans.
For the first time, Welsh Labour is leveraging collaboration with the UK Government to allocate over £3 billion in capital funding. Every department will see an increase in funding, enabling significant investments in infrastructure and services across Wales.
This marks a shift from the difficult budget decisions of previous years, with an additional £1.5 billion earmarked for public services, aiming to restore growth and resilience.
The funding reflects the First Minister’s priorities, focusing on job creation in sectors addressing climate change, restoring nature, and supporting families.
Specific allocations include:
- £3.7 million to address planning system delays.
- £5 million for Natural Resources Wales to expand land and marine consenting capacity.
- £4.5 million for Green Business Loans to assist SMEs with energy efficiency and decarbonisation projects.
First Minister Eluned Morgan said:
“Welsh businesses are the heartbeat of our economy, and this is a budget for a brighter future, supporting those businesses to thrive and survive.
“It is also an opportunity to build on our outstanding green and renewable energy sector, underpinning our unashamed support of new renewable energy projects to meet our electricity demands.”
Cabinet Secretary for Finance Mark Drakeford added: “This Draft Budget is for a brighter tomorrow. With two Labour governments working together, we can provide long-denied investment to public services, put Wales back on the path to growth, and start to reverse the damage inflicted over the last 14 years.
“It is a budget of hope and growth for Welsh businesses and the green sector. The First Minister’s priorities, those issues which matter most to the people of Wales, are reflected in this funding.”
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