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Post-Brexit lending to rural SMEs slumps, new study reveals

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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

Tenby sailing club works approved by national park

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A CALL for works to Tenby’s listed building sailing club to improve energy efficiency for the community organisation has been given the go-ahead.

In an application to Pembrokeshire Coast National Park, Harrison Richards of Tenby Sailing Club sought permission for replacing 24 timber windows at the Grade-II-listed Tenby Sailing Club, Penniless Cove Hill, with new Accoya timber double-glazed units.

The application added: “An energy survey conducted by Dragon Energy Consultants highlighted the existing single glazing and rotten window frames as a significant contributor to the club’s energy consumption.

“Tenby Sailing Club is a community organisation which seeks to organise activities year-round but faces significant energy costs being housed in a historic building. The current windows are beyond repair, with cracked glazing, decay, water ingress, and poor energy efficiency.

“The two windows at balcony level are not included, as they were previously replaced and remain in good condition. All new units will replicate the existing profiles, dimensions, glazing patterns, and overall appearance, ensuring no visual change to the building’s character.

“The neighbouring three-storey harbour stores occupied by Tenby Sea Cadets have previously replaced the building’s windows with double glazing. This like-for-like replacement in appearance will improve durability, weather resistance, and thermal performance while preserving the special architectural and historic interest of the listed building.”

An officer report recommending approval said: “The Sailing Club was built as a warehouse c. 1825, abutting the C17 sluice. Originally wine stores, it was later used by the local fishermen for stores and is now the home to Tenby Sailing Club, established in 1936.”

It said no adverse comments to the proposals had been received.

It added: “The proposal is to replace the majority (24 total) of windows in painted timber, double-glazed with face-mounted glazing bars of traditional scale and profile. Whilst a modern practice of glazing, the proposal involves no loss of historic fabric, provides an obvious visual improvement and addresses concerns as to heating costs.”

It finished: “The scheme is considered to be in keeping with the character of the listed building, and its setting in terms of design and form. As such, the application can be supported subject to conditions.”

The application was conditionally approved by planners.

 

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Business

Taxi fare shock in Milford Haven as drivers switch to meters

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TAXI passengers in Milford Haven are facing a sudden jump in fares, as drivers increasingly switch on their meters and charge full council-approved rates.

One Herald reader said a short return trip from Milford Haven to Neyland cost £30 — around double what he expected to pay.

But drivers insist the prices are not new — they are simply the official tariff now being applied.

Under Pembrokeshire County Council rules, the standard daytime fare starts at £4 for the first mile (£5 after 6pm), rising by around £3 per mile thereafter. Waiting time is also charged, meaning even short return journeys can quickly add up.

Higher rates apply in the evenings, at weekends and on bank holidays.

End of the £3 taxi

Milford Haven has long been known for cheap taxis, with short in-town journeys often costing as little as £3 — far below official rates.

That was down to competition, older vehicles, and the need to keep prices low in a town where many rely on affordable transport.

Drivers say those days are now over.

One local driver told The Herald: “People got used to cheap fares, but that was never the real price. Now we have to use the meter or we’re losing money.”

Fuel costs biting

Most taxis run on diesel, now around 170p per litre locally. For drivers covering long distances each day, the increase has hit hard.

Global tensions in the Middle East have pushed up oil prices, feeding directly into higher fuel costs in the UK.

With fare increases requiring a lengthy council process, many drivers say they have no option but to charge the full tariff.

Vulnerable hit hardest

The change is being felt most by those who rely on taxis the most.

Elderly residents, people on low incomes and those without access to a car are now facing higher everyday travel costs.

There has been no recent increase in Pembrokeshire’s official taxi fares, which have remained broadly unchanged since 2022.

The difference is simple: drivers are now charging them.

As one put it: “We’re not putting prices up — we’re just finally charging what we’re supposed to be charging.”

 

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Business

Cardiff Airport expects Easter passenger surge as demand rises

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CARDIFF AIRPORT is preparing for a busy Easter getaway, with more than 46,000 passengers expected to travel through the airport over the holiday period.

The figure represents an 18% increase compared to the same period last year, reflecting growing demand for both sunshine destinations and European city breaks.

The busiest routes this Easter are set to be Alicante, Dublin and Málaga, with flights operated by airlines including Ryanair, Vueling and TUI Airways.

Travellers heading for warmer weather can also take advantage of direct flights to the Canary Islands, including Tenerife, Lanzarote, Gran Canaria and Fuerteventura, alongside popular destinations such as Faro and Palma.

The airport says the increase builds on a strong start to 2026, with passenger numbers continuing to rise.

Chief executive Jon Bridge said the airport is approaching the one million passenger mark and expects the summer season to be its busiest since the pandemic.

He said: “It’s been an incredibly positive start to the year, and we’re looking forward to welcoming more passengers over the Easter period.

“Our teams are working hard to ensure travellers can start their holidays smoothly.”

Passengers travelling over Easter are being advised to allow extra time for their journey and check with airlines for the latest updates.

A total of 46,158 passengers are expected to pass through the airport between March 27 and April 12, with arrivals and departures almost evenly split.

Cardiff Airport said it continues to expand its range of destinations, including the addition of a direct service to Toronto, as it looks to strengthen its role in connecting Wales to international travel.

 

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