2. Will the Minister make a statement on support for small businesses in Wales? OAQ(5)0052(EI)

Yes. Wide-ranging support is available for entrepreneurs, small and medium businesses, right across Wales, through our Business Wales service. Our absolute focus remains on supporting jobs and the economy.

Thank you, Cabinet Secretary. Can I say, I was greatly encouraged by a report last week that highlighted the positive signs of growth in my own constituency of Merthyr Tydfil and Rhymney? We have a new factory—General Dynamics—at Pentrebach, bringing in 250 new jobs, high-quality jobs, into the area, and 150 new jobs to EE in Merthyr. And the report also quoted a local restaurant owner, who said,

‘Merthyr still has its rich industrial heritage, but the town is developing into a modern commercial hub, with lots to offer locals and visitors’.

That is something that I would totally agree with. However, what I think we all appreciate, Cabinet Secretary, is that, alongside new jobs from larger companies, the economic prosperity for areas like Merthyr Tydfil and Rhymney will be best secured by also encouraging new small and medium enterprises to come into the area. With the right support, such companies can become rooted in the communities and, if successful, can produce good-quality, well-paid and long-term employment. So, would the Cabinet Secretary agree with me that support to small businesses, through the extension of the small business rate relief scheme, and the launch of the growth and prosperity fund, could be key components in achieving this?

Yes, indeed, I would. And I’d say that, in the Member’s constituency, there have been a notable number of success stories in recent years—successes that have been driven in part by the availability of support from Welsh Government. To name but a few: Ashwood Designs, Rokel Engineering, Heighway Pinball Limited, and Elite Paper Solutions, demonstrate what can be done when the private sector works hand in hand with Welsh Government. I’m very pleased to say that we now have a record number of active enterprises headquartered here in Wales, and the latest figures show that Wales has the highest number of new businesses in more than a decade.

Now, the Welsh-Government-funded Business Wales service, which provides access to information, advice and support to both existing and start-up small and medium-sized enterprises throughout Wales, can be accessed online, via telephone, or as a face-to-face service. And a new £5 million growth and prosperity fund aims to stimulate economic growth by providing capital support to projects, to SMEs delivering job creation or safeguarding jobs, and also levers in additional investment and forms part of our business confidence plan.

The Member also rightly raises the significance of the small business rate relief scheme, which is to be extended for 2017-18, and there will be a new permanent scheme for 2018 onwards. And, thanks to this scheme, we already provide approximately £98 million in relief to businesses in this current year. Around 70 per cent of premises qualify for relief, and around half of all eligible businesses pay no rates at all.

I have highlighted the problem whereby businesses in the Môn enterprise zone were failing to make bids for a reduction in their business rates. I made that point to his predecessor, and I was very grateful to her for acknowledging that there was a problem and for opening a new window for making an application for a reduction. However, it appears that the problem remains. So, what intention does the Cabinet Secretary have to ensure that small businesses can take advantage of what they had expected to be able to advantage of in moving to an enterprise zone, which includes a reduction in business rates?

Well, indeed they should take advantage of this scheme, and I will endeavour to raise it not just with the local authority and their economic development unit, but also with the chair of the enterprise zone, when I next meet with them.

Cabinet Secretary, you’ll be aware that the Federation of Small Businesses Wales is calling for the creation of a Wales small business administration, which they believe will provide a better solution to fostering growth in indigenous SMEs in Wales. Can you tell us what consideration the Welsh Government has given to that specific proposal?

Well, Business Wales has been incredibly successful in assisting SMEs across Wales, and does pretty much what the FSB proposes for their model. If I could just highlight the success of Business Wales, in the year to date, 3,638 individuals and businesses have been supported with business advice, and, as a result, Business Wales is on course to achieve its target of 5,000 new jobs for the year. In addition, Business Wales continues to see high levels of enquiry—something in the region of 18,000—which is driven by the refreshed service, including the Accelerated Growth Programme and the new businesses online support service. Now, that has delivered more than 8,000 new registered users.

Cabinet Secretary, the biggest support the Welsh Government could give to small businesses across Wales, particularly those operating on our high streets, would be to level the playing field. Large out-of-town developments and supermarkets have the advantage of ample free parking, whereas small businesses operating on our high streets do not have that luxury. What assistance can the Welsh Government offer to councils across Wales to enable them to offer some free parking in our town centres?

It is very much an issue for local authorities to consider, but also it’s something that business improvement districts can give great consideration to. And I think, where they have been operating, there’s been considerable success, demonstrated by an increase in many cases in footfall within town centres. So, it’s very much something that local authorities and, indeed, town councils can consider as part of the way of attracting more business to their locations.

A business in my constituency, AIC Steel Ltd, went into administration yesterday. With redundancy hanging over the heads of 120 workers, what assurances can the Cabinet Secretary give me, the workforce and trade unions that every avenue is being looked at to support the workers through this very difficult time?

Can I thank the Member for her question and say that my sympathies go to all those affected by this morning’s news? We are doing everything we can to support the entire steel industry in Wales, and we’ve previously engaged with this company. We’ve offered the company access to Welsh Government initiatives, including the apprenticeship scheme, which is run by Coleg Gwent, the knowledge transfer partnership and the Graduate Opportunities Wales scheme, as well as the Sell2Wales initiative. Despite several attempts by both my own officials and Newport City Council to meet to discuss possible avenues of support, I’m afraid to say that the company’s been reluctant to meet. Careers Wales and Jobcentre Plus are contacting the company to see what assistance can be offered. I will also be meeting with the general secretary of Unite the Union tomorrow to discuss this matter, and I’ll be contacting the administrators to urge them to liaise with the trade unions.