Small Businesses

1. Questions to the Minister for Economy and Transport – in the Senedd on 2 October 2019.

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Photo of Angela Burns Angela Burns Conservative

(Translated)

2. What plans does the Welsh Government have to assist small business growth in Wales? OAQ54430

Photo of Ken Skates Ken Skates Labour 1:35, 2 October 2019

Thank you. In line with our economic action plan, we remain committed to supporting small businesses throughout Wales. And the development bank is assisting with its bilingual advice service and financial support for businesses to start and grow. Furthermore, the Business Wales accelerated growth programme provides specialist tailored support for businesses with significant growth potential.

Photo of Angela Burns Angela Burns Conservative

Thank you for that. And I do understand your drive and ambition to help small businesses in Wales. But, of course, last week, the shadow Chancellor, for the shadow bench, stated at your conference that he'd introduce a 32-hour week within a decade if Labour come into power. Now, how does this equate with your desire to encourage small business growth, as employers will have limited capacity to employ more staff, but their working hours will reduce? I've been in receipt of a number of telephone calls on this issue, so clarification on what the Welsh Government would do, or how you might manage the situation, will be something that I think small business owners will be raising more and more in the future.

Photo of Ken Skates Ken Skates Labour 1:36, 2 October 2019

Well, I'd say, first and foremost, the proposals are ambitious. They are right as well, in my view, but they're not without challenge, which is why a 10-year period has been presented as a transition for a reduction in the working week. What is most important within the UK economy right now is the twin challenge of a lack of inclusive growth—i.e. a lack of fair growth, and regions, therefore, being left behind—and a lack of productivity. And it appears to me, based on international expertise, that the productivity challenge can be addressed through reducing the working week, as we have seen in France, where productivity improved as a consequence of reducing the working week to four days. I believe that we can apply the same model within the UK and we can achieve the same outcomes as France has enjoyed.

Photo of Caroline Jones Caroline Jones UKIP 1:37, 2 October 2019

Minister, small business is the backbone of our economy and needs a low tax, red-tape-free environment in order to thrive. However, the biggest barrier to growth currently is poor infrastructure. According to the Federation of Small Businesses, a majority of businesses in Wales have found they're affected by Government making decisions on infrastructure. It's not just the Government's failure to deliver the promised M4 relief road, but it's the state of the road network and poor public transport links. So, Minister, how does your Government plan to address the FSB's concerns over the next 12 months?

Photo of Ken Skates Ken Skates Labour 1:38, 2 October 2019

Well, the FSB report, I think, was incredibly helpful and we'll be considering it very carefully. I would say, in terms of ambitious programmes for infrastructure, the £5 billion rail franchise, the transformational south Wales metro, the north Wales metro, which is making great strides, the development of a south-west Wales metro as well, all demonstrate that this Welsh Government has huge ambition for public transport and the infrastructure that's required to underpin it.