1. What economic support is the Welsh Government providing to ensure we have thriving high-street businesses in Wales? OAQ(5)0167(EI)

We continue to provide a wide range of support to all high-street businesses in Wales to ensure that they go on thriving.

Thank you, Cabinet Secretary. Unfortunately, due to the activities of some of the larger retail chains, who can afford to absorb losses, many of our small independent retailers are going out of business, destroying the diversity of our high streets. What economic incentives can your Government offer to small independent retailers to ensure their continued survival and avoid a future in which our high streets are just clones of one another, dominated by corporate chains? And will you discuss with the UK Government possibly lowering the VAT threshold, and graduated thresholds of VAT, for smaller businesses?

Well, can I thank the Member for her question and say that this is an issue that’s close to the heart of many Members in this Chamber? Just because a small business is struggling to operate doesn’t mean that it doesn’t have a future in an environment that sees an increasing amount of activity take place online. I think the important factor that will determine the success or failure of a small retailer is whether it’s distinct—distinct from competition. And, in some town centres, such as Narberth, we see a good number, and a high concentration, of small boutique businesses and retailers in particular.

Now, Government can act as an enabler, supporting small businesses on the high street, through programmes such as the business exploitation programme, operated in tandem with Superfast Cymru. We can also assist in terms of offering support through Business Wales, offering one-to-one advice for business growth and how to adapt to modern retail tastes and trends. Also, we can support businesses through the development of business improvement districts and town-centre champions. And we’re doing just this. But I think what’s crucially important is that, if a small business is struggling to carve out a niche, or to survive in a fiercely competitive environment, call Business Wales, seek advice and, potentially, seek support. Seek support in the form of a loan or other financial resource. It’s essential that that’s done as soon as possible. We can also offer advice and support in terms of skills training and management too.

Cabinet Secretary, one way to ensure that we have thriving high-street businesses in Wales is to make our high streets as accessible as possible, by developing car parking strategies that factor in local nuances around individual town-centre layouts. Now, I appreciate that the Welsh Government last year announced a package worth £3 million to help local authorities pilot town-centre free parking. So, in the circumstances, can you tell us how many town centres and high-street businesses, and high streets individually, have already benefited from this support?

I don’t have that data to hand. This is a responsibility of my colleague, the Cabinet Secretary for Finance and Local Government. But, if the data are already available, then I shall ask him to liaise with you specifically on that. I think it’s also important to recognise it’s not just car parks that can have an influence over the success or failure of a high street; it’s also whether a high street is populated with vibrant businesses. And there’s a lot of work taking place at the moment, looking at whether high streets can be shrunk, whether businesses, or business activity, can be consolidated into smaller, tighter areas, to generate a greater degree of activity that’s concentrated around a central hub.

This is something I’m very keen to explore as part of the place building element of the new prosperous and secure strategy. I think place building is absolutely essential in determining the prospects of a local economy. And, within an urban setting, it’s essential that a place feels of the highest quality, is accessible and is vibrant, not just during the daytime, but also at night time. And, for that reason, I think it’s essential that we go on supporting businesses in their diversification and ensure that town-centre economies are not just vibrant during the daytime, but also at night.

The Member also raised car parks as a means of accessibility into town centres. I think it’s essential as well that we go on investing in active travel and in local scheduled bus services, which, for many people, are an essential—indeed, crucial—means of accessing high streets and town centres. And I’m pleased that we are maintaining the £25 million for bus services across Wales, to ensure that those that wouldn’t operate on a commercial basis can still reach out to rural communities and connect them with urban centres.