Finance provided during 2025/26 is expected to help create 1,300 jobs and support more than 17,000 existing roles across Wales

SMALL businesses receiving British Business Bank-backed finance are forecast to generate an additional £600m in turnover and contribute £300m to the Welsh economy.

The figures, published in the government-owned development bank’s latest annual Impact Report, relate to businesses newly supported during the 2025/26 financial year.

Around 1,400 smaller businesses in Wales received bank-backed finance for the first time during the year.

Over the lifetime of that finance, the businesses are expected to create approximately 1,300 additional jobs while supporting a further 17,200 existing roles.

The forecast £300m increase in economic output represents the gross value added generated from the additional £600m in business turnover.

The bank said one of the main drivers of its activity in Wales had been the £130m Investment Fund for Wales, which was launched to improve access to finance for businesses at different stages of development.

The fund recently passed its second anniversary and has so far invested £37m through more than 102 investments involving 93 Welsh businesses.

Those investments have supported companies across a range of industries while also attracting additional private-sector funding into Wales.

Recent deals include a £3.5m investment in industrial services company Advantiv Limited, the fund’s largest equity investment to date.

The funding is intended to support the company’s expansion, the opening of additional locations across the UK and investment in operational innovation.

The British Business Bank is also supporting a new £6.5m innovation cluster in the Cardiff Capital Region.

The initiative aims to increase equity investment in high-growth businesses operating within the UK Government’s eight priority Industrial Strategy sectors.

Jess Phillips-Harris, director for Wales within the bank’s Local Growth Team, said the report demonstrated the effect that access to finance could have on businesses and communities.

She said: “This year’s Impact Report shows the real difference that British Business Bank support is making to businesses and communities across Wales.

“As the bank’s support continues to grow, we’re backing more businesses across a wider range of sectors, while bringing more private investment into Wales alongside our own funding.

“This is helping innovative companies develop new technologies, manufacturers expand their operations and entrepreneurs turn ambitious plans into long-term growth.”

She added that programmes including the Investment Fund for Wales, Start Up Loans and angel investment initiatives were helping companies grow while supporting skilled employment and local economies.

Across the UK, the British Business Bank supported £9.4bn of finance for smaller businesses during 2025/26.

The bank estimates that the finance will generate £19.7bn in additional turnover, £8.8bn in gross value added and 39,000 additional jobs over its lifetime.

Approximately 87% of the businesses newly supported during the year were based outside London.

The economic impact figures are forecasts based on the expected long-term performance of businesses receiving finance and do not represent turnover or jobs already delivered.

More than 300 Welsh businesses, 2,500 products and over 100 new product launches are being showcased as producers seek new buyers and markets.

Wales’ food and drink industry is taking centre stage at this year’s Royal Welsh Show, with hundreds of businesses using the event to secure new customers, launch products and explore opportunities for growth.

More than 60 companies are exhibiting in the show’s Food Hall, while the Food & Drink Wales Trade Business Lounge is representing over 300 Welsh businesses and around 2,500 products.

Organisers say more than 100 new products are being launched during the week, making the show one of the largest showcases of Welsh food and drink in the UK.

The programme brings together producers, retailers, wholesalers, hospitality businesses, public sector buyers and industry experts.

Last year, activity within the Business Lounge generated more than £3 million in confirmed sales. More than 300 trade buyers have registered to attend this year, including representatives from major retailers, foodservice operators and independent businesses.

Llyr Gruffydd MS, Cabinet Minister for Rural Resilience and Sustainability, said the show provided an opportunity to celebrate the quality and diversity of Welsh produce while helping businesses build valuable commercial relationships.

He said: “The Royal Welsh Show provides a unique opportunity to celebrate the exceptional quality, innovation and diversity of Welsh food and drink.

“Bringing together producers, buyers, industry experts and support organisations, it showcases the strength of a sector that makes a significant contribution to communities and economies across Wales and supports thousands of jobs throughout the food supply chain.”

The minister said activity at the Food Hall, Business Lounge and International Pavilion demonstrated the Welsh Government’s commitment to supporting an ambitious and growing industry.

He added: “The activity also reflects our ambitions for Wales’ National Food Strategy, which will help strengthen local production, local processing and local procurement, creating a more resilient and sustainable food system for future generations.”

Businesses exhibiting in the Food Hall represent sectors ranging from dairy, meat and bakery products to alcoholic drinks, soft drinks and preserves.

Among them is Welsh Lady Preserves, whose managing director Carol Jones said the event allowed producers to meet customers and buyers while promoting Welsh products to a wider audience.

She said: “The Royal Welsh Show is a fantastic platform for Welsh food and drink businesses.

“It gives us an opportunity to showcase our products, meet customers and connect with buyers, while championing the very best of Welsh food and drink.”

This year’s displays also highlight companies working on carbon-reduction plans, achieving B Corp certification and taking part in Blas Cymru, also known as Taste Wales.

New attractions include a Fresh and Welsh food-to-go display, a Design Your Own Canapé tasting experience and an exhibition highlighting Welsh products with protected Geographical Indication status.

The International Pavilion is hosting meetings, launches and industry events throughout the week.

These include the launch of the Dairy Sheep Wales Cluster, presentations for local authority caterers and NHS procurement officers, and activities aimed at encouraging young people to pursue careers in the food and drink industry.

Welsh Government support programmes are also being promoted at the show, covering innovation, technical development, exports, sustainability, skills and business collaboration.

Figures from the latest annual report for the government-backed HELIX programme show that it generated an estimated economic impact of more than £103 million during 2025–26.

The programme supported 159 companies and helped businesses develop more than 300 new food and drink products during the year.

With thousands of products on display and buyers attending from across the UK and overseas, industry leaders hope the Royal Welsh Show will provide a platform for further investment, sales and expansion across the Welsh food and drink sector.

This could also take a stronger business headline, such as: “Royal Welsh Show puts 2,500 Welsh food and drink products before buyers”.

A NATIONAL park refusal of the permanent siting of an award-winning Pembrokeshire seaside village outdoor sauna, which has been featured in the national press, is likely to be appealed, its owner has said.

Back in June 2024, a temporary two-year permission for a mobile wood-fired sauna at overlooking the sea at Saundersfoot harbour was granted by Pembrokeshire Coast National Park’s development management committee.

Since then, a further application by Kerry Evans of Hwyl Outdoor Sauna to make the siting permanent was submitted to national park planners, which was refused following an officer recommendation at the July committee meeting.

Back in February, the business, set up by former superyacht worker and mum-of-two Kerry won Sauna of the Year 2026/27 at the Wales Prestige Awards, and the facility has featured in the national press.

The permanent siting proposal had gained support from the public saying it was “a major asset to the village,” and “a wellness landmark for Saundersfoot,” and “a unique offering that attracts visitors to the beach and harbour”.

It was refused on the grounds the sauna “in its current form and with the proposed location of the sauna, is considered to result in a landscape impact that harms the setting of the Saundersfoot Conservation Area,” it was “located in a position which reduces public access along the existing promenade route,” and an updated, since its previous permission, need for a Flood Consequences Assessment which hadn’t been addressed.

At the meeting, applicant Kerry Evans said the sauna had been a “successful local business,” which had attracted thousands to the village with a thriving community around it, with donations to charities and local fundraisers.

She said the current location against beach-side railings was “fundamental to its success,” providing users with “privacy and dignity,” while allowing them stunning views across the bay.

After the scheme was refused committee members had expressed their hopes a different harbourside location could be found for the sauna.

Speaking after the planning refusal, Kerry Evans said she had started the early stages of a potential appeal over the decision by writing to Planning and Environment Decisions Wales (PEDW), adding: “We had amazing support from Cllr Chris Williams and [former county councillor] Phil Baker, [and a petition of some 600 signatures in support]; we had all the right people in the right places but it wasn’t actually been taken on board.”

On the reasons for refusal, Kerry said the flood risk issue seemed “a little bit nonsensical,” with the sauna operating for two years without any issues, the mobile sauna being moved in poor weather conditions as “it would be foolish to leave it there”.

On potential alternative locations, she said: “If there was somewhere suitable I’m obviously happy to look at that, but having explored it quite extensively there aren’t many areas; there’s a need for privacy, I have no control about who would be looking through the window.

“Part of the magic of that sauna is the view and the magic of the Pembrokeshire coast with the amazing light; people feeling slightly uptight come out relaxed, there’s a sense of space and connection with the outside world, which is hugely important for us as human beings.”

She went on to say: “We’re trying to arrange a meeting with the officers and the CEO of the harbour,” adding: “Everyone said ‘we want this business to work,’ if they’ve got a genius idea, I’m open to suggestions.

“To me it seems like a real shame it’s been refused, the only material change is it’s now proven to be a safe and successful business.

“It’s a frustration, all that hard work is being put in jeopardy by this decision.”

Since the refusal, a change.org petition entitled Save Hwyl outdoor sauna Saundersfoot, has been set up, attracting more than 300 signatures to date.