Business
Post-Brexit lending to rural SMEs slumps, new study reveals
Regional inequality deepens as small firms in rural and export-reliant areas suffer finance contraction
A NEW academic study has revealed a sharp decline in lending to small and medium-sized enterprises (SMEs) in rural and peripheral areas of the UK following the Brexit vote—worsening already entrenched regional inequalities.
The research, conducted by Bangor University and the University of Liverpool, shows a 4.8% annual contraction in SME lending in the years after the Brexit referendum compared to similar European economies. The findings have been published in the Journal of Rural Studies.
The decline was particularly pronounced during key Brexit milestones—such as the triggering of Article 50 and the passage of the EU Withdrawal Bill—highlighting the prolonged uncertainty caused by the UK’s departure from the EU.
Researchers used detailed postcode-level data from UK Finance to assess the geographic impact, marking the first such study to link Brexit with regional disparities in SME lending. The analysis found that peripheral and rural Local Authority Districts, as well as regions with high EU export dependency, experienced disproportionately severe reductions in credit access.
In 2016, 2017, and 2018, these areas saw lending shrink by 5.15%, 3.28%, and 1.97%, respectively.
The five worst-affected Local Authority Districts in 2016–2017 were: Derbyshire Dales, Hambleton, Mid Suffolk, Stratford-on-Avon, and Dumfries and Galloway.
Cem Soner, Doctoral Researcher at Bangor Business School, said:
“The initial fallout of Brexit—such as currency drops and market instability—was immediate. But our research shows the longer-term damage, especially to local economies dependent on EU trade. The evidence underscores the need for region-specific policies to help SMEs in these vulnerable areas recover.”
Professor Rasha Alsakka, who leads the Credit Risk Research Group at Bangor Business School’s Institute of European Finance, added:
“SMEs are the backbone of the UK economy, especially in rural regions. If the government is serious about levelling up, it must act on this data to ensure that all areas have fair access to finance.”
Dr Noemi Mantovan, Senior Lecturer in Economics at the University of Liverpool, said that access to finance is critical for SME resilience:
“Despite being smaller and often perceived as riskier, rural SMEs can be just as innovative and successful as urban ones. Ensuring they can secure loans is vital for job creation and sustainable economic growth.”
The full study can be accessed here: ScienceDirect – Journal of Rural Studies
Business
Glass theft warning as pubs prepare for busy summer
PUBGOERS are being urged to leave their pint glasses behind this summer amid warnings that thefts are adding pressure to already struggling pubs.
The call comes after Jeremy Clarkson revealed that his Oxfordshire pub, The Farmer’s Dog, is losing up to 400 pint glasses a week.
Small business comparison site Bionic said the issue is not confined to one venue, with millions of adults admitting they have taken tableware from pubs, bars or restaurants.
Laura Court-Jones, Small Business Editor at Bionic, said: “Many people see taking a pint glass home as a harmless act, but the costs can quickly add up for pubs, bars and restaurants already facing rising expenses and tight margins.
“If you want to support UK hospitality and help your favourite venues thrive this summer, leave all pint glasses behind.”
Bionic said glass theft can also have consequences for customers.
Ms Court-Jones added: “Stealing glassware from a pub might seem like a minor offence, but it is still theft. Licensed premises have the right to refuse service and may bar individuals caught stealing.
“In some cases, the police may be called. While a prison sentence is unlikely for a minor offence, individuals may face a formal warning, a fine, or a criminal record.”
The company said pubs and bars can reduce losses by using CCTV, setting clear house rules, switching to unbranded glassware, and checking whether their insurance covers stolen or damaged stock.
Hospitality businesses across the UK have faced rising costs in recent years, including energy, staffing, food, drink and supplies, with many warning that even small losses can have a serious impact on margins.
Caption: Jeremy Clarkson at The Farmer’s Dog pub, where glass theft has reportedly become a major problem.
Business
Planners reject farm’s sheep milk gin distillery expansion
A CALL to keep a building which would partly be used a distillery at a Pembrokeshire farm which produces award-winning sheep milk-infused gin has been turned down by county planners.
In an application to Pembrokeshire County Council, Steven and Julie Ayers of Fifth Flock Spirits Ltd through agent Johnston Planning Ltd sought permission for the retention of a replacement building for farm diversification purposes incorporating a gin distillery with associated function/tasting room, reception area for farm businesses, including the distillery, a kennels and caravan site, along with offices and associated storage facilities at Nash Mountain Farm, Sardis.
Two previous similar 2024 and 2025 applications have been refused, the latest scheme removing some previous elements.
A supporting statement said the building would be used for farm diversification purposes for a number of established rural enterprises on the holding “but primarily in connection with Fifth Flock Spirits Ltd, a family run drinks company specializing in gin infused with milk derived from the resident flock at Nash Mountain”.

It said the 2023-erected building had replaced an earlier long-standing dilapidated farm building on the site, and is intended to play host to the three established farm enterprises which are run in conjunction with the main agricultural operation: Nash Mountain Kennels, Nash Mountain Caravan and Camping Site and primarily Fifth Flock Ltd.
It said internal works had yet to be completed, and, in addition to the retention of the building, the application also seeks permission for some external works which have not yet been carried out.
The statement said the Ayers family has farmed at 26ha Nash Mountain, which has a flock of 168 East Friesian sheep, for some five generations, the limited acreage meaning “the agricultural mainstay is not sufficient to sustain a viable business,” leading to the farm diversifications, with Fifth Flock the latest.
It said, in addition to the main farming operation, Nash Mountain also gains income from an on-site wind turbine, a caravan site, a boarding kennels with cattery, and Fifth Flock Ltd.
On the gin side, the statement says: “Fifth Flock Spirits Ltd Fifth Flock has operated from Nash Mountain since August 2025. It is at core currently a drinks enterprise based on the production of gin and rum infused with sheep’s milk, however, as set out in the accompanying business plan, the intention is to expand the offer into other sheep-based products to capitalise on the home flock.
“Since launching the enterprise has exceeded expectations with strong demand and accolades including A Taste of Pembrokeshire Award at the Pembrokeshire Food and Farming Awards in December 2025.
“Firth Flock currently source their gin from an independent distillery in Gorgeddan, Ceredigion however the intention, as reflected in this submission, is to develop the distilling element on-site and include it as part of an immersive visitor experience focussing on the home flock.
“Firth Flock has rapidly become a cornerstone of the enterprise at Nash Mountain and whilst the building at the centre of this proposal may have been premature there is a strong case for its retention as part of the overall rural enterprise on the holding.”
It adds that the Ayers are actively exploring diversification into other wool and sheep-based products.
The application was refused on the grounds including it was not demonstrated a countyside location was needed and there was not “sufficient evidence of a genuine and established rural enterprise necessitating the development,” adding: “In particular, the primary distilling process does not currently take place at the site and instead relies on off-site production, with only a future aspiration to relocate such activities.
“As a result, the proposal represents a speculative form of development that lacks a clear and direct functional link to the agricultural holding.”
It went on to say the scale of the proposals “introduces a level of intensity and built form more akin to a standalone commercial or tourism enterprise, rather than a modest farm diversification scheme”.
Business
Plans for Ireland-UK fibreoptic cables to be connected at Pembrokeshire
PLANS by a Vodafone phone company subsidiary to bring fibreoptic cables across the sea from Ireland to a Pembrokeshire seaside beach village in order to improve broadband coverage have been lodged.
In an application to Pembrokeshire Coast National Park, Apollo Submarine Cable Systems limited, through agent APEM Group, seeks permission for the construction of four underground telecom chambers and interconnecting ducts, along with Horizontal Directional Drilling (HDD) underneath Brandy Brook, Newgale, and the construction of one HDD bore-to-sea outfall.
A supporting statement accompanying the application says the scheme would form the onshore part of a project to bring a fibreoptic cable onshore from Kilmore Quay, Wexford, Ireland to a site at Newsurf Shop car park, Sands Café Car Park and Duke of Edinburgh Inn, Newgale.
It says the majority of the project is subterranean, with very minor above ground works are proposed, which comprise the installation of a manhole cover.
It adds: “To facilitate improved internet connectivity, the applicant is proposing the installation of a fibreoptic telecoms cable (the Beaufort cable) from Kilmore Quay, Wexford, Ireland to Newgale.
“The project is to facilitate the installation of the Beaufort cable, as it comes ashore in Wales and to link it into the wider network, which will be operated by Vodafone’s wholly-owned subsidiary Apollo Cable System Limited in the UK.”
It says the project would see three underground telecom chambers and a 120-metre interconnecting duct, the 87-metre HDD underneath Brandy Brook, launching from the receiver pit located within the Site, along with the construction of one HDD bore-to-sea outfall, in a subtidal area of Newgale bay, of approximately 920 metres, and one underground telecom chamber and interconnecting duct.
Citing a report on digital connectivity, it says 5G geographic coverage has seen improvements but is still relatively low at 57 per cent of Wales’ landmass, with 4G the primary service.
That report says there is a difference in full fibre coverage between urban and rural areas (83 per cent versus 59 per cent) and highlighting a need for further coverage.
On the scheme itself, the statement says short-term noise and disruption to local residents “is anticipated during the construction phase however this will be limited to 57 days,” adding: “The proposed drilling operations are not to be continuous and will be limited to approximately 20 minutes in each hour,” the works in total expected to last 91 days after which land will return to its former use without restrictions.
It goes on to say: “The HDD is specifically designed to mitigate the risk of any shoreward movement of the shingle bank and beach level changes. The use of HDD reduces the likelihood of potential environmental impact on the landscape and seascape.
“The project is not anticipated to interact with Brandy Brook. All drilling works will take place within excavated launch pits and all construction works will be confined to the hardstanding of the car park.”
The application will be considered by Park planners at a later date.
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