Business

Welsh Government releases additional £100M business support

Published

3 years ago

April 20, 2020

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.

Business

Tuk Tuk touring business with franchise hopes gets licence plate call turned down

Published

1 day ago

March 29, 2023

Bruce Sinclair Local Democracy Reporter

A SOUTH Pembrokeshire three-wheeler ‘tuk tuk’ tour business, which has hopes of creating a country-wide franchise has had a call for discreet signage on a support vehicle turned down.

Pembrokeshire County Council’s licensing sub-committee, meeting on March 27, considered an application to amend standard terms and conditions of a private hire vehicle.

The application, by Lorraine Niederlag of Begelly-based Tuk Tuk Time, asked for standard external private hire plates to instead be displayed internally for its “usually affluent” clients.

The application for this change of plates asked: “We wish to request the removal of the large private hire licensing plates, in exchange for more discreet internal plates. The intention is to focus on tours that would compliment our tuk tuk tours.”

The applicants said the charming three-wheeler Tuk Tuks were usually kept to south Pembrokeshire tours, and were not really suitable for county-wide day trips; the support car being used for that.

“As our clients are usually affluent, it would be detrimental to arrive in a pre-booked vehicle with such a ‘taxi’ image. In view of all bookings being pre-booked, we cannot see any safety issues for clients by more discreet signage,” the application added.

At the committee meeting, TUK Tuk Time said it hoped to use the support vehicle, bearing the signage “Wales’ premier travel” for some short trips from its campsite to restaurants until the business grew.

Lorraine Niederlag told members it was hoped that Tuk Tuk Tours could eventually become a franchise, with similar three-wheeler Tuk Tuk and support car schemes running in other parts of the country.

She told members that if the small plates call was turned down the support vehicle would be sold.

Cover image: Giving a shout out to the Rainbow Delivery Squad are Lorraine Niederlag, family and staff of Tuk Tuk Time. Picture: Gareth Davies Photography

Business

MPs to examine opportunities for defence manufacturing and cyber security in Wales

Published

3 days ago

March 27, 2023

Tom Sinclair

THE WELSH AFFAIRS COMMITTEE has today launched (Mar 27) a new inquiry examining the defence industry in Wales, looking specifically at defence manufacturing and cyber security.

From Airbus to Kent Periscopes, Raytheon to Qioptiq, there are over 160 companies supporting the defence sector that are based in Wales. Wales’ defence sector is further enhanced by the Ministry of Defence’s (MOD) Defence and Electronics Components Agency (DECA), based in North Wales, which has a £0.5 billion contract with the US Department for Defense.

However, there are concerns that a decrease in investment from the MOD will erode the prominence of Wales’ defence sector. In recent years, the number of jobs and small and medium sized enterprises (SMEs) in the sector has declined and MOD spending in Wales has fallen by £300 million since 2018. The Committee is keen to examine trends in defence spending and how SMEs can benefit from available opportunities.

Over the course of the inquiry, MPs will look at how important the sector is to the Welsh economy, investigate the opportunities for growth and examine the role of the UK Government in further promoting the defence sector in Wales.

Welsh Affairs Committee Chairman, Stephen Crabb, said:

“From maintaining fighter jets to hosting one of the most advanced aircraft surveillance and intelligence systems in existence, in Wales we have a ground-breaking defence sector that is routinely punching above its weight.

“However, MOD investment in Wales has decreased, as have the numbers of jobs and SMEs in the Welsh defence sector. Over the course of our inquiry, we will be considering the future opportunities and challenges to ensure defence industries in Wales – from defence manufacturing to cyber security – thrive.

“The defence sector is a major employer and helps support local economies across our nation and it is in all our best interests to support Wales’ defence prowess.”

The Committee is inviting written submissions by Friday 5 May. These should focus on, but not be limited to:

What are the reasons underlying the trends in MoD spending in Wales since 2019?
What is the MoD’s understanding of how funding flows from prime contractors to small and medium sized defence sector businesses in Wales?
What is the relationship between Wales-based prime contractors, Welsh academic and research bodies, and the development of new defence technologies?
Can Wales play a role in enhancing the UK’s defence industrial capacity?
Do skills and knowledge exist within Wales’ workforce to support the growth of the Welsh defence sector?
How might the reorganisation of Wales’ defence estate affect employment in the defence sector in Wales?
Will the 10% social value weighting applied to MoD procurement support the Levelling Up agenda in Wales?

Business

Economy Minister congratulates Celtic Freeport consortium on winning bid

Published

3 days ago

March 27, 2023

Tom Sinclair

ECONOMY MINISTE, Vaughan Gething, was in Port Talbot today to congratulate the Celtic Freeport consortium on their successful bid to be Wales’ first freeport, which is set to deliver tens of thousands of new, high-quality jobs in south west Wales.

Last week, the Welsh and UK governments jointly announced the Celtic Freeport in Milford Haven and Port Talbot, and Anglesey Freeport on Ynys Mon, have been chosen as Wales’ first freeports.

The two freeports aim to collectively create around 20,000 jobs in the green industries of the future by 2030 and attract up to £4.9 billion in public and private investments.

The Celtic Freeport will be based around the port of Port Talbot in Neath Port Talbot, and the port of Milford Haven in Pembrokeshire.

The freeport plans focus on low carbon technologies, such as floating offshore wind (FLOW), hydrogen, carbon capture, utilisation, and storage (CCUS) and biofuels to support the accelerated reduction of carbon emissions.

The freeport aims to attract significant inward investment, including £3.5 billion in the hydrogen industry as well as the creation of 16,000 jobs, generating £900 million in Gross Value Added (GVA) by 2030, and £13 billion by 2050.

The Minister visited the port of Port Talbot earlier today, which will become one of the focal points of the new Freeport – which is expected to be operational later this year.

Speaking during a visit to Port Talbot, Economy Minister, Vaughan Gething said: “It was great to be in Port Talbot today to congratulate the Celtic Freeport team on their successful bid.

“From off-shore energy to advanced manufacturing, the Celtic Freeport will help create tens of thousands of new, high quality jobs in the green industries of the future. it will support our highly ambitious plans to reach net zero by 2050, while also supporting our young people to plan their futures here in Wales.

“All this will help us transform the economy of south west Wales, helping us create a stronger, fairer and greener future for local people and communities.”

Roger Maggs MBE, Chair of the Celtic Freeport consortium said: “Wales is on the cusp on an exciting green journey.

“The freeport decision will cause a chain reaction.

“Upgrading our major energy ports in Milford Haven and Port Talbot will enable floating offshore wind, create the cradle to nurture new green tech companies and take a step on the path to greening Wales’ steel industry.

“Now is the time for action so that Wales captures the renewable energy supply chain.”

Andrew Harston, Director, Wales and Short Sea Ports, Associated British Ports (ABP) said: “The roll-out of floating offshore wind, or FLOW, in the Celtic Sea provides a once-in-a-lifetime opportunity for Wales. Port Talbot is the ideal location for the deployment of FLOW, and ABP is ready to invest over £500m in new and upgraded infrastructure to enable this and to ensure first-mover advantage to capture this global market. The Celtic Freeport provides a huge opportunity, and not just for FLOW, but for sustainable fuels and hydrogen too.