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Rural operators ‘petrified’ by bus reforms

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RURAL bus operators are petrified by the Welsh Government’s plans to introduce a London-style bus network in Wales, the industry warned.

Scott Pearson, chair of the Coach and Bus Association Cymru, gave evidence on the bus bill which seeks to bring buses into public control, with operators bidding for contracts.

Mr Pearson, who has been running bus services for 25 years, cautioned against a regional approach or modelling reforms on other franchise systems such as Greater Manchester’s.

“That’s a massive population in a big urban area,” he told the Senedd’s infrastructure committee. “Wales is not like that: you’ve got three big cities in the bottom, one at the top and, in between, a whole load of hills and mountains.

“The rural aspect to this, our members – the SME [small- and medium-sized enterprise] membership – are petrified about this bill.”

Expressing concerns about smaller operators being squeezed out, Mr Pearson told the meeting on May 15: “‘Petrified’ is the right word to use because we don’t have detail.”

Aaron Hill, director of the Confederation of Passenger Transport Cymru, agreed: “Scott is right, buses are inherently a very local service and respond to very local needs. We would be missing a trick if local authorities didn’t have a bigger role in how we shape the network.”

Mr Hill warned of significant barriers for SMEs, with six-figure costs in some parts of the UK to bid for franchises and regulatory hurdles to clear to even take part in the procurement.

“We need, if we’re going to do it successfully in Wales, to overcome that,” he said.

Mr Pearson stressed: “If you hand a guy who’s got ten buses a 150-page document for the franchise and say ‘do you want this?’… they’re not going to do it, they’re going to sell up.”

Mr Hill cautioned a change in the regulatory model will not guarantee success, warning the bill does little to take buses out of traffic, coordinate roadworks nor speed up journey times.

He said: “The bill doesn’t actually change the economics of running bus services in Wales – so many of the challenges that the network faces today, the network will still face on the other side of re-regulation.”

Raising examples of other franchised networks, Mr Hill said London has historically had a gap of around £700m between the cost of the service and the income generated.

He said the gap in Greater Manchester, which took control of buses in 2023, is about £250m and the Welsh bill exposes the network to similar affordability challenges.

Mr Hill told Senedd Members: “We think the bill only lends itself to one type of franchise, a gross-cost franchise – that is the franchise that carries the most risk for taxpayers.”

Mr Pearson warned the public purse will shoulder all the risk under the bill as drafted.

Mr Hill warned a regulatory impact assessment (RIA) published alongside the bill was insufficient, with “at least” £200m of additional costs not factored in.

“That feels to me to be a significant question that hangs over the viability of franchising,” he said, pointing to examples including national insurance tax hikes and staff costs.

In written evidence, the Confederation of Passenger Transport Cymru warned: “We are concerned that the assessment of the financial implications are overly optimistic and based on weak assumptions and unrealistic forecasts.”

Mr Pearson similarly criticised a lack of detail in the bill and impact assessment, making it difficult to understand the costs and challenges.

He said: “If we’re trying to do the same with the current funding, and adding a whole load of costs into it from TfW [Transport for Wales], for instance, it’s just simply not going to work because you can’t get more for less.”

Mr Pearson added: “It talks about patronage increase in the RIA – that’s a big, big faux pas because nothing in this bill… looks at the main cause… which is congestion.

“It’s not dealt with at all. I think we’ve got a once-in-a-lifetime opportunity here and we’re not… addressing the main problems that we currently face as operators.”

Mr Hill added: “There’s a real risk here: we’ve built up public expectation, in the same way… as with the railways, then delivery or significant improvement doesn’t follow for a long time.”

Asked about the scope of the bill, with councils rather than ministers remaining responsible for school transport, Mr Pearson questioned the logic of separating the two.

He raised the example of a rural operator, which provides bus services and school transport, missing out on a franchise, asking: “What happens to the home to school, the local authority picks it up? That’s a whole… different ball game… I don’t think that is going to work well.”

Business

Pembrokeshire industrial jobs ‘could be at risk’ as parties clash over investment

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TRADE unions have warned that hundreds of industrial jobs in Pembrokeshire could be at risk without stronger long-term support for Welsh manufacturing, as political parties set out competing approaches ahead of the Senedd elections.

TUC Cymru says its analysis suggests 939 industrial jobs in Pembrokeshire could be vulnerable if investment in clean industrial upgrades were withdrawn, warning that policies proposed by Reform UK, and to a lesser extent the Conservatives, pose the greatest risk to industrial employment.

The warning comes as the union body launched its “Save Welsh Industry – No More Site Closures!” campaign at events in Deeside and Swansea, calling on all political parties to commit to a five-point plan to protect and future-proof Welsh industry.

According to TUC Cymru, jobs at risk locally include 434 in automotive supply chains, 183 in rubber and plastics and 75 in glass manufacturing. The union body says these sectors rely on continued investment to remain competitive and avoid offshoring.

TUC Cymru said its modelling focused on industries most exposed to closure or relocation if industrial modernisation and decarbonisation are not delivered. It argues that without sustained public and private investment, Welsh manufacturing faces further decline.

A GMB member working at Valero in Pembrokeshire said: “It’s clear Nigel Farage has no clear plan. I can see this industry collapsing under his policies. We need support, not division. His way will lead to job losses across the board and the lights will go out.”

The union body stressed that all parties need to strengthen their industrial policies, but claimed Reform UK’s stated opposition to net zero-related investment would place the largest number of jobs at risk across Wales, estimating that almost 40,000 industrial jobs nationally could be affected. Conservative policies were also criticised, though the TUC said the likelihood of job losses under the Conservatives was lower.

Labour has rejected claims that Welsh industry is being neglected, pointing to recent investment announcements made at the Wales Investment Summit, where more than £16bn worth of projects were highlighted as being in the pipeline across Wales.

Ministers said the summit demonstrated growing investor confidence, with projects linked to clean energy, advanced manufacturing, ports, digital infrastructure and battery storage, and thousands of jobs expected as schemes move from planning into delivery.

Labour has argued that public investment is being used to unlock private sector funding, particularly in industrial regions, and says modernising industry is essential to keeping Welsh manufacturing competitive while protecting long-term employment.

At UK level, the party has also highlighted its National Wealth Fund and GB Energy commitments, which it says will support domestic supply chains, reduce long-term energy costs for industry and help secure both existing and future jobs.

Opposition parties and some business groups have questioned whether all announced projects will translate into permanent employment, arguing that greater clarity is needed on timescales and delivery.

Reform UK has argued that scrapping net zero policies would cut public spending and reduce costs for households and businesses, while the Conservatives have pledged to roll back climate-related targets and reduce regulation on industry.

Unions dispute those claims, warning that higher electricity prices and a lack of investment would make Welsh industry less competitive internationally.

TUC Cymru President Tom Hoyles said Welsh industry needed urgent action from all parties to survive and thrive in the 21st century, warning that policies which sought to turn back the clock could put thousands of Welsh jobs at risk.

With industrial areas including Flintshire, Neath Port Talbot and Carmarthenshire also identified as facing significant pressures, the future of Welsh manufacturing is expected to remain a key political issue in the run-up to the Senedd elections.

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Business

New digital toolkit aims to future-proof rural Welsh businesses in AI search era

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A NEW digital toolkit developed in Ceredigion is being hailed as a potential game-changer for small businesses in rural Wales, as artificial intelligence reshapes how customers discover local services online.

Created by Antur Cymru Enterprise, the SMART Busnes programme is giving Welsh SMEs an early foothold in Answer Engine Optimisation (AEO) – a rapidly emerging discipline focused on how businesses appear within AI-generated search responses.

As AI-driven tools increasingly replace traditional search results with instant, conversational answers, SMART Busnes – supported by the UK Shared Prosperity Fund – has launched one of the first practical AEO toolkits available in Wales.

The initiative is being led by Digital Business Advisor Lynne Rees and centres on a new insight framework known as Agentic AEO. The approach is designed to help rural and micro-businesses remain visible online as search engines and AI platforms prioritise structured, easily interpreted information over conventional keyword-based webpages.

Kevin Harrington, Project Manager for SMART Busnes

Kevin Harrington, Project Manager for SMART Busnes, said the shift represents a fundamental change in how businesses need to think about their online presence.

“AI search is here to stay, and our Agentic AEO insight series isn’t a tweak – it’s a reset,” he said.

“It’s about helping Welsh SMEs show up wherever customers search: on Google, on social media, and increasingly within AI-generated answers. This gives rural businesses access to the kind of digital advantage that large brands often pay thousands of pounds for.”

Traditional search engine optimisation is already being overtaken by AI-led systems such as Google’s Search Generative Experience and tools like ChatGPT, which provide direct responses rather than lists of links.

For small businesses, this presents a growing risk. If online content is not structured in a way AI tools can understand, businesses may fall below the point where potential customers ever see them.

Agentic AEO focuses on improving clarity, structure and user intent across websites, social media platforms and Google Business Profiles. By presenting information in formats AI systems can easily process, businesses can improve both visibility and credibility within automated responses.

The SMART Busnes AEO Insight Series provides practical support, including step-by-step guidance on restructuring webpages, examples of effective layouts, and tailored AI prompts to help business owners produce optimised content quickly and affordably. Even modest changes – such as a website review, targeted content update or short advisory session – can influence how a business appears in search results over the coming year.

Antur Cymru chief executive Bronwen Raine

Antur Cymru chief executive Bronwen Raine said the programme was designed to help businesses adapt to long-term change.

“SMART Busnes was created to support small businesses through change, not simply to chase trends,” she said.

“The Agentic AEO insight series shows how Shared Prosperity Fund investment is driving genuine innovation, building confidence, skills and sustainability across local economies.”

With many SEO providers in Wales still focused on older techniques, SMART Busnes is positioning Ceredigion and the wider Mid and West Wales region at the forefront of AEO adoption.

By translating emerging digital theory into accessible, practical support, the programme aims to strengthen resilience among rural enterprises and ensure they remain visible, trusted and competitive in an AI-led future.

More information about SMART Busnes and the support offered by Antur Cymru Enterprise is available via the organisation’s website.

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Business

Unemployment in Wales rises to highest level in a decade

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Welsh jobless rate hits 6.1% as Conservatives blame Labour and Plaid budget deal

UNEMPLOYMENT in Wales has climbed to its highest level in ten years, according to the latest labour market figures.

Statistics covering September and October 2025 show the unemployment rate in Wales now stands at 6.1 per cent — the highest since mid-2015. The figure represents a rise of 1.4 percentage points compared with the previous quarter and remains higher than the UK average.

The increase comes amid continuing pressure on households and businesses, with higher costs, weaker growth and ongoing uncertainty affecting parts of the UK economy.

The figures have prompted criticism from the Welsh Conservatives, who have blamed both the UK Labour Government and the Welsh Government for what they describe as a deepening employment crisis in Wales.

Commenting on the data, Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, Samuel Kurtz MS said the Welsh Government needed to take urgent action.

“Labour and Plaid’s unemployment crisis is deepening; the Welsh Government must get a grip,” he said.

“Rachel Reeves’ latest budget has hit business hard, with unemployment rising every month under Labour and yet again higher here in Wales than elsewhere.

“Labour can’t be trusted with the economy. The Welsh Conservatives are offering a bold and costed tax-cutting agenda to kickstart growth, including the abolition of stamp duty and cuts to business rates, but Plaid and Labour’s stitch-up of a budget deal will mean more of the same economic decline.”

The Welsh Government has previously argued that employment figures are influenced by wider global and UK-wide economic challenges, as well as long-standing structural issues within the Welsh economy, including lower average wages and higher levels of economic inactivity.

Ministers have pointed to investment in skills, apprenticeships and infrastructure as part of efforts to support jobs and stimulate growth, while also noting that key economic levers remain reserved to Westminster.

Economists caution that quarterly unemployment figures can fluctuate and should be viewed alongside longer-term trends, including economic inactivity and underemployment.

However, with unemployment now at its highest level for a decade, pressure is increasing on both the UK and Welsh governments to demonstrate how their economic policies will deliver sustained job growth in Wales.

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