5. What further steps will the Welsh Government take to work with Newport City Council and other partners to regenerate Newport city centre? OAQ55231

I thank John Griffiths for that question, Llywydd. Almost £23 million of regeneration grant and loan funding has been approved for projects in the Newport City Council area since 2014. The Welsh Government continues to work collaboratively with the city council to ensure the successful delivery of their current and future regeneration project.

Thank you for that, First Minister. I do think that that strong partnership between Welsh Government, Newport City Council, business, social landlords and others has borne considerable fruit and helped to meet the challenges of finding alternative uses for our city centre. And soon there will be a further example of that when a substantial four-star hotel opens up in Newport city centre, close to the Friars Walk shopping centre, which itself, of course, was a result of that partnership just a few years ago. But nonetheless, First Minister, there are ongoing challenges, because retail is changing at such a pace, with so much online shopping and so on, so there will be a need to continue and I think strengthen that partnership, and I wonder if you would take the opportunity today to commit to building on the progress made to date by strengthening further that joint working between Welsh Government, Newport City Council, business and social landlords in the city.

Llywydd, I'm very pleased to make that commitment, because Newport City Council I think is a real example of a local authority with ambition for the regeneration of its city centre, and a willingness to work in partnership with the Welsh Government, where we are able to provide assistance to them in doing so. There are many examples of this that John Griffiths has referred to, from the Ringland community hub in his own constituency—visited recently by my colleague Hannah Blythyn—to the £17 million Connecting Commercial Street programme. And as I said in my original answer, Llywydd, there are a series of potential further investments in Newport, whether it's the Tirion Homes investment on the former Whiteheads steelworks site—and I'm very pleased to see an application from the city council to the Welsh Government's £5 million fund for green infrastructure and biodiversity in urban areas, and particularly looking forward to working with the city council on the initiative that was announced some weeks ago by the Welsh Government, where we had to provide new powers to local authorities and a £13.6 million fighting fund to tackle blight caused by abandoned buildings in towns and cities across Wales. And I know that Newport council has put forward a number of buildings where they think using the powers and the funding will allow them to regenerate those buildings, to prevent the blight that they currently cause to surrounding areas, and to bring them back into genuinely beneficial use.

First Minister, research by the Local Data Company shows that Wales has the highest shop-closure rates in the United Kingdom. In the first half of the last year, the number of shops in Newport fell by 3.5 per cent. The Welsh Retail Consortium points out that retail accounts for over a quarter of the business rate take in Wales. Although small business rate relief and transitional rate relief are a welcome recognition of the need to keep down costs for firms, three quarters of the retail employment is with firms who do not qualify for this. First Minister, do you agree that the existence of such relief schemes demonstrates the urgent need to reform business rates in Wales to help regenerate city centres such as Newport?

Llywydd, I agree that there is a case for the reform of the business rate system. It's why we will bring forward proposals to reform the appeals system. It's why we've agreed to bring forward by a year the re-rating exercise for business properties. But if I understood the Member's suggestion rightly, I would not agree that what we need to do is to reform the help that we offer small businesses in Wales in order to siphon help away from them and to provide it to large multinational retail outlets.

The nature of the retail high street is changing, and it's certainly changing in Newport, and old ways of just trying to make the previous model work faster will not sustain retail into the future. We want to work with the sector to be part of the necessary reform. We want to use the millions and millions of pounds that we invest in rate relief schemes to create sustainable retail businesses for the future.