Business
MP Crabb welcomes changes to ensure free access to cash at ATMs in Pembrokeshire
STEPHEN CRABB, MP for Preseli Pembrokeshire has welcomed the UK Government’s decision to ensure a legal right of free cash for millions of people. The move will mean that all including the most vulnerable in society can continue to withdraw and deposit cash for free.
The amendment to the Financial Services and Markets Bill, which is making its way through Parliament, means that the financial services regulator will have the legal power to preserve access to cash – free to consumers at the point of withdrawal or deposit – for those who need it.
The Government Minister responsible for the Bill, Andrew Griffith MP, said that whilst speed, and convenience of digital payments opens a world of opportunity for people and businesses, the reality is that so many still depend upon access to cash, particularly the elderly or those who use cash to manage their finances. This is especially true in rural parts of the country, in places like Pembrokeshire.
Following the decision, MP Crabb commented: “Pembrokeshire operates under a strong cash economy, with many people relying on free withdrawals and deposits of cash on the high street. The ability to make deposits is particularly important to support small businesses own ability to take cash.”
“Back in 2020, I wrote to the Chancellor on the need to secure access to cash, and I am pleased to see that concrete action has now been taken. I know that this change will be important for the elderly and most vulnerable in Pembrokeshire who frequently use cash as their choice of payment.”
Mr Crabb’s comments to this newspaper come the UK government has agreed to legally mandate banks to provide customers with easily accessible free cash services on high streets. This decision comes amidst a surge in bank branch closures over the past year and a continual decline in the number of free-to-use cash machines.
The reduction in access to cash or banking facilities poses challenges for individuals who rely on physical currency, particularly the elderly, affecting their ability to conduct everyday tasks such as banking and shopping.
Baroness Ros Altmann, who was instrumental in driving this legislative change and received support from Life Peers across the political spectrum, lauded the development, saying, “It is great news and about time there was recognition of the role played by cash in many people’s lives.”
According to government data, over two million individuals aged 70 and above do not have internet access, preventing them from conducting online banking and rendering them reliant on physical bank services.
Over the past 15 months, major banks have closed nearly 900 branches, leaving around 5,000 remaining. Although the number of free-to-use ATMs only declined by four percent last year, over the past five years, more than 15,000 cash machines have vanished from high streets.
Consumer group Which? emphasised that without the amendment proposed by Baroness Altmann, the objective of safeguarding access to cash through the new legislation would have been undermined, as numerous free-to-use ATMs were being closed or replaced with fee-charging machines.
Rocio Concha, Director of Policy and Advocacy at Which?, emphasised the importance of free cash access for those on lower incomes, as some fee-charging ATMs impose fees of up to £2. She stated, “We have campaigned to ensure that laws protect free access to cash and are delighted the Government agrees that people should not have to pay fees to access their own money.”
John Howells, Chief Executive of cash machine network Link, welcomed the strengthened legislation, describing it as a significant step forward. Link has already intervened to protect 3,400 free-to-use cash machines from closure and, through a partnership with banks, recommended the establishment of over 100 banking hubs in communities where all branches have been shuttered. Cash Access UK, funded by the banks, is responsible for opening these hubs, and a few have already been established, including one in Troon, South Ayrshire.
Howells emphasised the need to protect access to cash, as approximately five million people still rely on physical currency despite its declining usage.
Tulip Siddiq, the Shadow City Minister, urged the government to go further and adopt Labour’s policy of safeguarding face-to-face banking services to ensure that no individual is left without essential services.
Business
Impact of budget announcements felt by Welsh business in Q4
EMPLOYMENT measures announced in the Autumn Budget may have affected attitudes to recruitment by businesses in Wales in Q4 of 2024, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.
17% of businesses in Wales increased the size of their workforce over the last three months and 17% also expected their workforce to increase in the next quarter. While over half of the businesses surveyed (59%) expect the size of their workforce to remain constant in the next three months, there was a rise in the number of respondents who foresee that their workforce will decrease, from 15% in Q3 to 24% in Q4.
Fewer businesses in Wales attempted to recruit during the final quarter of the year than in Q3. Of those who did recruit in Q4, 65% experienced difficulties especially when recruiting for professional, managerial, skilled manual and technical roles.
The latest edition of the Quarterly Economic Survey also included questions specific to measures announced in the Budget such as the proposed increase to the National Minimum Wage and National Living Wage from April and whether the changes would impact businesses’ staffing plans, particularly in relation to hiring young people such as graduates, school and college leavers.
Around half of the respondents revealed that the increases to £10 and £12.21 an hour for the minimum wage and living wage respectively would not affect their business. Other businesses in Wales suggested that they would have to either halt recruitment plans, approach recruitment with caution or increase the prices of their services.
Businesses also expressed their hesitation to hire young people, with many reducing the numbers they plan to recruit in 2025.
Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said: “Taxation has become the external factor causing the most concern for businesses in Wales and the measures announced in the Budget such as the increase to employers’ national insurance contributions, combined with rising labour costs and changes to employee rights, have not surprisingly driven those concerns.
“Our Quarterly Economic Surveys show that recruitment remains a persistent challenge for businesses in Wales, and this continued in Q4 with a rise in the number of firms expecting their workforce to decrease and fewer investing in training. One of the impacts of the tax and National Minimum Wage increases looks to be a reduction in expected entry level recruitment this year.
“As businesses review their budget planning in preparation for upcoming changes, more support is needed to tackle barriers to growth such as access to skills development and learning pathways to help companies attract and retain talent with the right skills for their sectors.”
Business
Slower contractions in Welsh business activity and orders in December
WEAKER declines in output and new orders Firms remain optimistic for 2025 Employment falls at fastest rate since September 2020
The latest Cymru Growth Tracker from NatWest highlights a slower pace of decline in business activity and new orders for Welsh companies in December 2024.
The Wales Business Activity Index, which measures month-on-month changes in output across the manufacturing and service sectors, rose to 48.9 in December from 47.7 in November. While still below the 50.0 threshold that indicates growth, the latest reading signaled the slowest contraction in the current four-month downturn.
The softer decline in output was underpinned by only a slight fall in new orders. Welsh firms expressed optimism for increased activity in the year ahead, although concerns over economic uncertainty, rising costs, and selling prices tempered expectations.
Employment and Cost Pressures
Despite improved business activity, subdued demand, spare capacity, and heightened cost pressures led to the sharpest drop in employment since September 2020. Redundancies were driven by cost-cutting initiatives and lower sales, with voluntary leavers not being replaced.
Although firms managed to increase selling prices at the fastest rate since May 2024, business confidence slipped to a 13-month low.
Jessica Shipman, Chair of the NatWest Cymru Regional Board, commented:
“Welsh businesses saw a slightly brighter end to 2024 as contractions in output and new orders eased. Success in engaging new customers helped slow the decline in new business, and firms are cautiously optimistic about 2025. However, the pace of job cuts accelerated, and rising costs—particularly wages—pose ongoing challenges to margins.”
Comparing Wales to the UK
The performance of Welsh businesses contrasted with modest growth across the UK. While Wales recorded slower declines, the pace of contraction in business activity remained more pronounced than the UK average.
New orders also fell for a second consecutive month in December, though the decline was among the weakest of the ten UK regions experiencing downturns. Optimism among Welsh firms about future output fell to its lowest level since November 2023, lagging behind both the UK average and historical trends.
Inflation and Pricing Trends
Input costs at Welsh firms rose at their fastest pace since April 2024, driven by higher supplier prices, rents, and wage bills. The rate of cost inflation was slightly below the UK average, but the pressure remained historically high.
In response, businesses raised selling prices at the quickest rate since May 2024. Despite this, Wales saw one of the slower increases in charges among the 12 UK regions, with only Yorkshire & Humber, Northern Ireland, and the West Midlands recording weaker upticks.
Employment and Backlogs
Welsh private sector firms reported the steepest job cuts of all UK regions, with staffing levels falling at the fastest rate since September 2020. Similarly, incomplete work declined at the quickest pace among the monitored UK areas, reflecting subdued demand and increased spare capacity.
Business
Government unveils £2.5bn Steel Strategy to revitalise UK steelmaking
THE UK Government has announced the creation of a new Steel Council, backed by up to £2.5 billion in funding, to secure the long-term future of steelmaking and protect steel communities across the country.
Chaired by Business Secretary Jonathan Reynolds and Jon Bolton, Chair of the Materials Processing Institute, the council brings together industry leaders, trade unions, and representatives from devolved governments to address challenges and develop a robust Steel Strategy.
Business Secretary Jonathan Reynolds said: “The industry and steel communities have had enough of lurching from crisis to crisis – this government will take the action needed to place steel on a secure footing for the long term. With the launch of the Steel Council, we’re placing workers and local communities at the heart of our plans as we bring forward £2.5 billion investment to secure growth right across the country.”
The council, which held its first meeting on January 7, will act as a critical link between the Government and the steel industry. It aims to foster collaboration and ensure the workforce is central to plans for rebuilding the sector.
Safeguarding a crucial industry
The Steel Council includes key players such as Tata Steel, British Steel, and trade unions like Community and GMB. Its primary focus will be to support the upcoming Steel Strategy, which is expected to be published in spring.
Gareth Stace, Director-General of UK Steel, said: “The establishment of the Steel Council marks a defining moment for the future of steelmaking in Britain. This strategy is a once-in-a-generation opportunity to foster a competitive business environment that encourages long-term investment and ensures steelmaking remains at the heart of the UK economy.”
Jon Bolton, co-chair of the council, echoed this sentiment: “The UK has all the essential elements to attract investment into the steel industry: demand, skills, technology, unrivalled research and development, and, critically, a supportive government. The council’s task is to detail the investment plan and establish a roadmap towards a rejuvenated, competitive, and environmentally progressive industry.”
Commitment to economic growth and national security
The Government has emphasised the importance of the steel industry to both national security and economic growth. The Steel Council will continue to meet regularly following the launch of the Steel Strategy to ensure the effective use of the £2.5 billion funding.
Full Steel Council membership includes:
- Jonathan Reynolds, Secretary of State for Business and Trade (Chair)
- Jon Bolton, Chairman of the Materials Processing Institute (Co-chair)
- Sarah Jones, Minister of State for Industry and Decarbonisation
- Representatives from Tata Steel, British Steel, Liberty Steel, and other major steel companies
- Trade unions: Community and GMB
- Devolved government representatives from Scotland, Wales, and Northern Ireland
The Government’s Plan for Change aims to transform the steel sector into a sustainable and innovative industry while safeguarding jobs and economic stability for steel communities nationwide.
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