The Economy of Rural Towns

1. Questions to the Minister for Economy and Transport – in the Senedd on 16 January 2019.

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Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru

(Translated)

1. What plans does the Welsh Government have to boost the economy of rural towns? OAQ53189

Photo of Ken Skates Ken Skates Labour 1:30, 16 January 2019

Diolch. Improving the availability and quality of work in all parts of Wales is essential to our aim of tackling regional inequalities, and through the economic action plan we are taking action to empower people with the skills required to get the best jobs that they can and to empower each of the regions in Wales, including rural communities in those regions. 

Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru

We've seen, of course, an increase in the number of retailers who have gone into administration. I think it's up 6 per cent since 2017, and, of course, we're hearing that it's been quite a tough Christmas for businesses on the high street. Now, we need a major transformation in retail and in the way the high street operates and presents itself, particularly more challenging, I'd imagine, in rural towns than many other places. People won't stop buying; I suppose it's the way that they spend their money that's changing. But how is the Government helping those retailers, particularly in rural areas, to respond to those changes and challenges, and what are you doing to support them in that transition so that we can retain, at least, or even increase the footfall, and that we can maybe provide the enhanced shopping experience that some people are looking for?

Photo of Ken Skates Ken Skates Labour 1:31, 16 January 2019

Well, I think the Member raises a very timely question, given that we've just been through the busiest time of the year for the high street. And what is very apparent is that consumer behaviour continues to change, and many experts believe that we're only half the way thorough the, if you like, revolution that the high street is facing. Against that backdrop, the Welsh Government is able to assist, and is assisting in a number of ways, through rates relief, through the creation of business improvement districts. And I believe we are doubling the number of BIDs, with support offered from the Welsh Government for the creation of many more such interventions. But I think what is also important to note is that the retail sector has now been designated priority status by the Welsh Government, and, as my colleague the Deputy Minister takes forward work on the foundational economy, we'll be looking to test various interventions to support important components of the foundational economy, of course including the retail sector. 

What's vitally important is that we also place a renewed focus on quality of place as an attractor for consumers to go into town centres and into the high street. What we've seen in many parts of Wales, parts of the UK and the world, where there are vibrant high streets still, is that those high streets are not just based on the retail sector, on the experience of purchasing goods, but on a wider experience—on the experience of interacting with people, on services that are provided often alongside retail services. And, so, in terms of the regional plans and the place-based economic development programme that we're now taking forward, I believe that the retail sector in Wales has much to look forward to. However, that optimism that I have is set against a universal backdrop of continued consumer behavioural change.