Business
Wales bucks national trend with rising business confidence in June
BUSINESS confidence in Wales surged by six points to 43% in June, according to the latest Business Barometer from Lloyds Bank Commercial Banking. This is in stark contrast to the overall UK trend, where confidence fell.
Companies in Wales reported increased confidence in their own business prospects, with a three-point rise to 38%. Optimism in the broader economy climbed even higher, up nine points to 48%. This combined to give a headline confidence reading of 43%, up from 37% in May.
Growth Targets
Looking ahead, Welsh businesses have identified their key growth areas for the next six months. Nearly half (47%) are focusing on investing in their team through training. Additionally, 43% plan to evolve their offerings by introducing new products or services, and 26% are investing in sustainability initiatives.
The Business Barometer, which surveys 1,200 businesses monthly, offers early insights into economic trends both regionally and nationwide.
The National Picture
Across the UK, overall business confidence dipped by nine points in June, settling at a net balance of 41%. Despite this decline, confidence levels remained above the long-term average of 28%.
Businesses reported lower confidence in their trading prospects, which fell by 10 points to 44%. Economic optimism also decreased, down seven points to 39%. However, both figures remained relatively strong.
Yorkshire and the Humber led the way as the most confident UK region in June, with a confidence level of 48%, followed closely by the North East of England (47%) and the East Midlands (46%).
Sector Insights
June’s sector-specific results were mixed. Three of the four sectors experienced declines in trading prospects. Confidence in the construction sector fell by 16 points to 42%, retail dropped by 14 points to 35%, and services decreased by 11 points to 46%. Manufacturing was the exception, with a slight increase of two points to 51%.
Expert Commentary
Sam Noble, Regional Director for Wales at Lloyds Bank Commercial Banking, commented on the findings:
“This month’s Business Barometer shows that Wales is bucking the UK-wide trend. As businesses look to capitalise on greater confidence, it’s important that they keep a close eye on working capital. Rapid growth, which can come with new opportunities, may quickly tie up funds in working capital, restricting businesses’ financial flexibility. Identifying working capital pressure points in advance and using specialist tools like invoice finance or asset-based lending can unlock funds that can help fuel firms’ ambitions.”
Hann-Ju Ho, Senior Economist at Lloyds Bank Commercial Banking, added:
“These results suggest a slight drop in business confidence in June as firms’ trading outlook and economic optimism fell below levels seen in recent months. However, these results are still broadly in line with the positive readings we were seeing towards the start of the year. Fewer businesses indicated that their prices would increase in the next few months, which aligns with last week’s fall in inflation figures. Meanwhile, there was a mixed set of results across the sectors, with confidence falling in construction, retail, and services following last month’s increase.”
Wales continues to demonstrate resilience and optimism, standing out in a challenging economic landscape.
Business
Tesco Milford Haven to reintroduce Café after two decades
TESCO in Milford Haven is set to bring back its café after a hiatus of over twenty years. This move is part of a significant refurbishment project aimed at enhancing customer experience and revitalising the store’s offerings.
The new café will serve as a focal point for the store, offering a fresh space for customers to relax and enjoy a variety of beverages and meals. This reintroduction marks a nostalgic return for many long-time shoppers who remember the café from years past.
In addition to the café, Tesco is implementing several updates, including reconfigured aisles and the installation of environmentally friendly fridges and freezers, set for completion by September. A new F&F clothing department is also scheduled to open on 9 August.
The store’s petrol station closed early at 5 PM yesterday (Jun 30) for maintenance, and customers were advised to plan accordingly.
Tesco said that with these developments, they aims to create a welcoming environment in Milford Haven that combines convenience with sustainability.
Business
Union calls off strike for further talks on future of Welsh steel
THE UNITE UNION has decided to call off a strike planned for July 8 to allow for further discussions about the future of the UK’s largest steelworks at Port Talbot in Wales. The Pembrokeshire Herald has been informed that this decision comes amid concerns over the potential accelerated closure of the site’s remaining blast furnaces.
Owners Tata had previously warned of the possibility of bringing forward the closure of both remaining blast furnaces, citing safety concerns due to a staff walkout. Unite’s proposed strike had drawn criticism from other unions, who feared it would hasten the shutdown of blast furnace number four, initially scheduled for closure in September.
Both the Community and GMB Unions were hoping to use the time until September to negotiate an extension of the furnace’s operational life, potentially under a new government.
The UK government has pledged a £500m grant to develop a new £1.25bn electric arc furnace. This new furnace, designed to recycle scrap metal, is less energy-intensive but will require significantly fewer staff. The closure of both blast furnaces would result in the loss of 2,800 jobs, whereas extending the life of one furnace could save 2,000 of those jobs until the new electric arc furnace is operational, a process that could take up to three years.
Sources close to the situation told the BBC that Unite had given Tata an excuse to accelerate job losses by planning the strike. However, Unite officials refuted this, claiming their action “had helped focus minds” and resulted in a victory by ensuring further talks after the upcoming election.
In a letter from Tata to the unions, the company had already agreed to further discussions post-election. Alun Davies, national officer for the Community union, commented: “Tata have confirmed that if the strike is called off they are ready to resume discussions on a potential memorandum of understanding. The truth is Tata never walked away from those discussions, and at our last meeting on 22 May all unions agreed to conclude the negotiations and put the outcome to our members. Community would welcome resuming those discussions, but we regret that zero progress has been made since 22 May.”
Officials from other unions criticised Unite, stating that their actions had caused “nothing but chaos” and financial losses for their members. This comment refers to an earlier overtime ban that Unite implemented without consulting other unions.
Union officials admit there is no guarantee Tata will agree to extending the life of the blast furnace beyond its scheduled shutdown in September. However, they express hope that if Labour wins the election, their manifesto commitment to invest £2.5bn in the steel industry could provide a crucial lifeline.
Samuel Kurtz MS, Welsh Conservative Shadow Minister for Economy and Energy, commented on the latest developments: “We welcome any discussions that bring both the steelworkers and Tata to the table to iron out how best jobs can be supported in the short term, as an early closure of the blast furnaces will bring additional distress to communities already dealing with enough as it is.”
He further criticised the Welsh Labour government, saying, “The Welsh Labour government have only paid lip service to Tata’s workforce, failing to contribute a penny to the transition board, and UK Labour’s manifesto says nothing on what it would do differently to support Port Talbot’s steelworkers.”
Unite general secretary Sharon Graham said: “This is a significant development in the battle to protect jobs and the long-term future of steel making in South Wales. Investment from Labour secured by Unite will be key to the future of the site.
“This breakthrough would not have come about without the courage of our members at Port Talbot who were prepared to stand up and fight for their jobs. Workers were simply not prepared to stand idly by while steel making ended and their communities were laid to waste.
“It is essential that these talks progress swiftly and in good faith with the focus on fresh investment and ensuring the long-term continuation of steel making in South Wales.”
Business
New Chair appointed at the Port of Milford Haven
THE PORT of Milford Haven is delighted to announce the appointment of Dr Siân George as its new Chair. Appointed by the Secretary of State for Transport, Siân took over the role on 22nd June 2024.
Siân brings a wealth of Board level experience, with a notable maritime, energy and safety focus. She is particularly recognised for her experience and knowledge of the marine renewables sector, where she has been a strong voice for UK and European policy and regulatory reform, working with stakeholders to help secure over €300m of public funding initiatives for the sector and overseeing an award winning strategic vision for developing Europe’s marine energy resources. Siân has a strong reputation for fostering constructive stakeholder relationships, and extensive experience working in safety-critical and highly regulated sectors.
Siân succeeds Dr Chris Martin who joined the Port as Vice-Chair in 2012 and became Chair in 2017 overseeing key steps in the Port’s development.
Dr Siân George, Chair at the Port of Milford Haven said “I am delighted to join the Port of Milford Haven and look forward to working with the team to achieve our goals for the business and for the region. I am very much looking forward to building on the great work undertaken during Dr Chris Martin’s tenure and continuing to ensure the Port plays its part in creating a wealth of new opportunities for current and future generations.”
Tom Sawyer, Chief Executive at the Port of Milford Haven said “Siân joins us at an exciting time. We are making significant investments in our pilotage operations to ensure we keep delivering our Waterway customer’s needs, safely and effectively. We are also focused on expanding the influence Pembroke Port has within the FLOW, wave and tidal industries to become a key hub for green industrial growth. And, through our investment in Milford Waterfront and other areas of hospitality and tourism, we are strengthening Pembrokeshire’s reputation as a must visit destination for UK holidaymakers.”
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