The following amendment has been selected: amendment 1 in the name of Siân Gwenllian.

The next item is the Welsh Conservatives' first debate for today, on small businesses. I call on Paul Davies to move the motion. 

Motion NDM7854 Darren Millar

To propose that the Senedd:

1. Recognises small business Saturday in championing Wales’s small businesses.

2. Believes that small businesses are the beating hearts of the communities that they serve and are a vital part of the Welsh economy.

3. Encourages communities to shop local to support small businesses to grow and thrive, creating jobs for local people.

4. Calls on the Welsh Government to continue to support small businesses through changes in procurement policy across the public sector, helping them to recover from the COVID-19 pandemic.

Motion moved.

Diolch, Dirprwy Lywydd. I'm pleased to move the motion tabled in the name of my colleague Darren Millar. This Saturday is Small Business Saturday, and I hope Members across the Chamber will take the opportunity to support and promote small businesses in their constituencies and regions. The campaign, of course, is in its ninth year in the UK, having grown significantly each year with a record £1.1 billion spent with small businesses on Small Business Saturday in 2020, and 15.4 million people choosing to shop small. In Wales, we know that small businesses are more than just enterprises; they're also an important part of our communities and our societies, too. During the pandemic, small businesses reached out to help their local communities. For example, restaurants and caterers helped deliver meals to NHS workers, shops have checked in on vulnerable local residents, and the list goes on and on.

As we have all been affected in one way or another by the COVID pandemic, so were our small businesses, and it's absolutely crucial that Governments at all levels do everything in their power to aid their recovery and support their growth. I'm pleased, of course, that the UK Government has taken some positive steps to support small businesses in the 2021 budget. For example, the cut to business rates and an extension of the Government's recovery loan scheme have all been welcomed by businesses across Wales. These policies, of course, follow the announcement earlier this year of the £520 million Help to Grow programme, which was introduced to help small businesses boost their productivity. And, to be fair, there have been some positive commitments from the Welsh Government too, such as the £45 million package of funding to address skills shortages, announced last week. This funding includes £10 million to boost personal learning accounts, which will certainly help local colleges to deliver additional courses and qualifications in priority sectors. And we can't overlook some of the progress made by local authorities, like Monmouthshire County Council, which has really pushed a 'shop local' agenda with their Faces of Monmouthshire campaign, featuring some of the county's business owners, who explain why shopping locally makes a huge difference. There is some really positive activity taking place, and we must ensure that we capitalise and build on that good work.

We on this side of the Chamber are ambitious for Welsh businesses, and we want to offer constructive policies to help our small businesses post pandemic. The Minister will know that I'm keen to look at ways to strengthen our procurement practices, to help small, local businesses bid for public sector contracts. Let's remember that research has shown that for every £1 a small business receives, 63p is reinvested in the local economy, compared to 40p for larger firms. That's why it's crucial that the procurement system is as accessible as possible to small businesses and that they have every opportunity to win contracts in the first place.

I understand that my own constituency has the second highest number of SMEs in Wales, and amongst the concerns that local business owners have is a need for improvements to infrastructure, and I sincerely hope the Minister will consider our proposal to introduce a 'rebuild Wales' investment fund to help deliver the infrastructure improvements Wales's businesses are calling for. Of course, at the very top of the list of concerns raised with me by small businesses is indeed business rates. The Minister has said that he is in discussions with the finance Minister, and earlier on today he said that I would have to wait a few weeks until the Welsh Government's budget is published. So, I look forward to seeing something in that budget regarding business rates, because for some businesses, the reintroduction of business rates could be the difference between them staying open or closing for good. I hope the Minister will reflect on the fragility of SMEs during the pandemic and consider that when it comes to any decisions on business rates.

Our motion recognises the role that Small Business Saturday plays in championing Wales's small businesses, and whilst it's a great opportunity for us to show our support to local businesses, we must remember that one day a year doesn't protect a small business's sustainability, and so I sincerely hope that all Members will continue to champion the SMEs in their constituencies long after Small Business Saturday is over.

Dirprwy Lywydd, whilst the pandemic has created a huge amount of uncertainty for businesses across Wales, it's also given us the opportunity to look at things differently, to try out new ideas and find new ways of tackling old problems. So, in closing, I want to see more action taken in relation to procurement practices, to ensure that small businesses can compete for public sector contracts. We need to see action in response to the infrastructure concerns made by small businesses, and the Welsh Government need to hear their pleas when it comes to deciding what to do with business rates in April of next year. And finally, as we look to Small Business Saturday this weekend, let's all redouble our efforts and champion our SMEs by buying local and promoting our local small businesses. I urge Members to support our motion. Thank you.

I have selected the amendment to the motion. I call on Luke Fletcher to move the amendment tabled in the name of Siân Gwenllian.

Amendment 1—Siân Gwenllian

In point 4, after ‘sector’ insert, 'that is based on a local-first principle, increasing Welsh-based public sector procurement from the current level of 52 per cent'.

Amendment 1 moved.

Diolch, Dirprwy Lywydd, and I move the amendment tabled in the name of Siân Gwenllian. Wales has one of the lowest levels of local business ownership of any advanced economy. That must, of course, change. Time and time again, public money has been spent to attract new investment, and either the investor then exports the profits or simply walks away. This has been the story of economic development in Wales for over 50 years. Instead, our plans for a smarter economy should be based on expanding, supporting and protecting domestic businesses. A 'local first' policy when it comes to procurement could be built around local ownership of the economy, and, as part of this, a Welsh model of local public procurement built on the foundational economy. Using the Welsh Government's own £6.3 billion procurement budget and by working in close partnership with other public sector bodies, Plaid Cymru would like to see realised a target of increasing the level of public sector procurement from 52 per cent to 75 per cent of the total spend. This will create an estimated 46,000 additional jobs. 

Many of us in this Chamber welcomed the youth guarantee. In this guarantee lies another opportunity to bolster small businesses here in Wales. The 'think small first' principle directs policy makers to give consideration to small businesses during policy development. The principle relies on the fact that one size does not fit all. Of course, many of these businesses, as the Conservative motion sets out, supported our communities throughout the pandemic, and it would be remiss of me not to mention the support given by Verlands Stores in my home town, which, like many other small businesses across Wales, delivered food to our neighbours' doorsteps and more often than not, were able to stock some of those supplies that the larger shops couldn't—a testimony to small businesses' agility.

Finally, as many Members will surely mention today, and Paul Davies has rightly mentioned already, Small Business Saturday is fast approaching, and I promised the Chamber during spokesperson's questions that I'd reveal where I get my hair cut and beard trimmed; the style I'm modelling today was provided by Blackout Barbers in Bridgend. But I, of course, share some other frequented businesses, all of which I encourage every Member in this Chamber to visit. If, like me, you appreciate a good sandwich, there's no better place to go than the Sandwich Co in Pencoed. They pretty much fuelled me during the election and in reality, still do. I'd recommend the Arnie sarnie and the osborne as a starter and don't forget, of course, to pick up a brownie on your way out. Speaking of dessert, WHOCULT Coffee & Donuts in Bridgend has you covered, you can also get kitted out with a new wardrobe by popping next door to WHOCLO clothing. And finally, there's no time to list everyone, but I'll leave Members with one more recommendation: Valley Mill in Swansea—candles and slate homeware galore. And by the way, you don't have to travel far to buy one of their products, you can find them upstairs in the Senedd shop. Every day, I come home to the smell of their Welsh cake candle, and don't worry, I also ask myself the question, 'How much more Welsh can I get?', even when my candles are shamelessly Welsh. The answer is: probably quite a bit more.

I'm not going to tell everyone where I get my hair cut, we'll be here all day.

COVID lockdowns have made us realise how important our local businesses are; they've been a lifeline for rural communities in my constituency. The visit to the local shop or the pub could be the only face-to-face conversation and contact that some people have every week, and I do have to declare an interest here, Deputy Llywydd, as I do still drive our delivery van from time to time, delivering prime quality venison, but other establishments are available.

The need to buy local top quality produce is greater now more than ever. We need to help the environment by cutting back on transport miles and this was echoed in my colleague, Peter Fox's Bill last week. And food producers in my constituency of Brecon and Radnor do their utmost to produce high quality locally sourced food that is environmentally friendly. I've long championed the need to buy local and support local businesses on our high streets long before I came to this place, leading on growing the economy of Powys by the Powys pound scheme and many other incentives when I was going around meeting many small businesses right across Powys. The importance of our small businesses to our economy is huge and this is evident in the statistics. There are 265,000-plus micro, small and medium-sized businesses in Wales, which collectively make up 99.4 per cent of all enterprises operating in the country.

SMEs turn over £46 billion a year—that's a huge amount of money—and they deliver growth and jobs in rural areas and right across Wales. But their value is more than a statistic; it's more than money. It is supporting our local communities, our friends and our neighbours who own small businesses or who work in a business or supply the business. It is our sense of identity as a country and we all know the local butcher, like W.J. George Butchers Ltd in Talgarth or the greengrocer like Grenfell's & Sons Grocers in Crickhowell and others who go above and beyond to support their communities with charity work and donations for very important events. But we have seen many village shops and pubs close across my constituency in recent years, and it has left a hole in the hearts of many of our communities, but it's so positive to see that there are communities that come together, like Llangors Shop in my community, which is working together to create a shop for that community, it's absolutely fantastic.

But many businesses are not back to trading levels yet, pre pandemic. Many businesses are seeing lower footfall as a result of the introduction of the Welsh Government's COVID pass and a change to shopping habits. Business rates are the highest cost to most small businesses after rent and staff wages, and I do welcome that the Government is supporting our small and medium-sized businesses by continuing the holiday and I hope that you'll follow the UK Government in your budget and do more to support our small businesses. So, I urge everybody to think about your local businesses in your communities going forward. It may be cheaper and more convenient to do your Christmas shopping on Amazon or somewhere else, but spare a thought for the local traders and the invaluable services that they offer that go far beyond the provision of goods and services. So, this weekend, get out and support your community and support Small Business Saturday.

I really welcome this debate today in the run-up to Small Business Saturday. Small Business Saturday—as has been remarked already, we should be celebrating the best of our businesses not just on one Saturday in the year but throughout the year, and urging people to use their small businesses, diverse and myriad as they are, every single day of the year. But, this does give an opportunity, particularly in the run-up to Christmas, to remind people of the importance. Don't go down to the big traders and don't go online; go and see some of the amazing—not just the products, but the customer service you'll get by wandering through the door of your local traders and retailers.

We've had a great time over the last month, as we always do, myself and Chris Elmore, showcasing some of the very best of our exceptionally diverse, creative and amazing local businesses. There's been more than ever this year who've come on board with Small Business Saturday. Indeed, if you look at the diversity of them, sometimes we think it's only when you wander up the high streets, but if you look at some of the ones in the area I represent, we've got DAC Training Solutions, which provides education, training and consultancy for other small businesses; we've got Valley and Vale Community Arts; we've got companies like Atomic Knitting in Bryncethin, which has bespoke knitting and crochet tools and accessories; craft shops like Florrie's in Maesteg; aerial imaging—the very best of aerial imaging, used, actually, by things like emergency rescue services as well, so Airpix Aerial Images in Maesteg.

We've got lots of food shops—lots of cake shops and so on, like Kellys Cakes of Pencoed. We've got film and cinematic companies, like—[Inaudible.]—and CineMerse, based in Pencoed, based around the thriving, large television and studio production companies that we now have. Well, it's spun off to these small, bespoke, local cinema and television companies as well.

Then you've got things like Sims Foods Limited, with the amazing vegan, vegetarian, gluten-free products in Pontyclun. They are delicious—we eat them regularly and they are stunning. Just in case, particularly for this time of the year, we've got the incredible Seasons in Brynmenyn industrial estate. It's the place in Wales that you'd go to for your stock-up of Santas, Christmas decorations and so on, whether it's a metre-high acrylic deer with a colour switch, with a warm white and white base, or your three-metre outdoor Santa with beech-wood feet and an iron base. You can get everything at Seasons; it is quite incredible, as showcased on television and Wales Online, and everything else there. 

Minister, what I was going to ask you is: we recognise, as indeed the opening remarks from the opposition spokesperson from the Conservatives, Paul Davies, remarked, there has been an enormous amount of support out there, particularly through the pandemic, for some of these businesses. Some of these businesses have given back in spades as well. If you look at, for example, just one in my area: James Thomas, an incredible guy from the well-known Beefy's Baps—

Huw, you need to conclude now.

Yes, indeed, I will conclude. Just to say, he was one of many. He delivered more than 2,300 meals during the first wave of the pandemic, with the help of Gilfach Goch rugby club and the local community, to the vulnerable and elderly. Minister, I would simply say: let's celebrate these businesses and, also, provide them with the support that they need, going forward, as well. Thank you very much.

It's a pleasure to take part in this debate this afternoon. The Vale of Clwyd is home to many great small businesses, far too many to list for this short debate this afternoon. I could go on all afternoon, but each one is vital to the economy of my constituency and to that of north Wales, and to the prosperity of our nation as a whole, as small business are the lifeblood of our villages, our towns and our cities. It's our job, here in this place, to ensure that we create an environment where small businesses can thrive and survive.

Sadly, the Welsh Government talk the talk, but when it comes to creating the right conditions to help small businesses to continue trading, they not only fail to act but often pursue anti-small-business policies. We have the highest rate of business rates in Britain, and while I welcome the temporary small business rates relief scheme, what happens after the existing pandemic phase is over? 

The Welsh Government, and their little helpers in Plaid, as I like to say, are planning even more taxes on small businesses—the tourist tax is just the latest hair-brained scheme. This Welsh Government has to abandon such plans and create a low-tax business environment. Our small businesses, many of them family owned and family run, employ nearly two thirds of the Welsh public. They are not a cash cow to fund Government waste and excess.

We have to help our small businesses survive and thrive. While I can do little about the Welsh Government’s business credentials, I can show my support for small businesses across Wales, and this weekend I will practice what I preach. I will be visiting businesses across my constituency and urging others to shop local, and I urge people in my constituency, this Saturday, to avoid going to places like Broughton park, Parc Prestatyn, Parc Llandudno or Chester, and to eat local food and drink and to buy local goods and services, whether it’s enjoying a pre-shopping breakfast at the Glass Onion café in Denbigh, buying a Christmas cheese board at the Little Cheesemonger in Prestatyn and Rhuddlan, getting some last-minute Christmas calendars printed at Perham Prints in Rhyl, or enjoying a well-earned evening meal and a few beers in the Plough in St Asaph. There is a wide and varied choice of small businesses to support in my constituency and every other constituency in Wales, but a small business isn’t just for Christmas—we have to show our support for these businesses all year round, as Huw Irranca-Davies rightly said. So, I urge Members to support our motion and to shop locally at every opportunity. Diolch yn fawr.

I concur with much that’s been said already across the Chamber, and it’s wonderful to hear so many Members championing their local businesses today, and rightly so. We are blessed with a plethora of diverse, wonderful small businesses across my region of South Wales East, and it’s so important too that we support them in any which way we can, and lead by example.

Small businesses are the backbone of our Welsh economy and the beating heart of communities across Wales. With Small Business Saturday looming this weekend, I hope that we see a new record of spending within small businesses to surpass last year’s £1.1 billion in our villages, towns and cities. This weekend is our chance to repay our small businesses and say, 'Thank you for being there when our communities needed you the most.' Small businesses have suffered heavily over the last 18 months, but have shown enormous resilience, and how they have adapted during the pandemic has been incredible. For example, rapidly seeing takeaway and delivery services popping up everywhere, and also businesses adapting to what their communities need. It’s been genuinely wonderful and impressive to see people adapting in the way that they have been.

But, sadly, we’re not supporting small businesses in the best way possible here in Wales. The pandemic support package was welcome, but Wales still has the shameful title of having the highest business rate in the UK at 53.5p. This is just not good enough. As small businesses try to rebound from the pandemic, I call on this Labour Government to ditch the punitive taxes outlined by my colleagues earlier, and create a low-tax, market-led environment for businesses to thrive in. It is imperative that we listen to our business owners, work with them, and work towards creating a friendly environment for small businesses to thrive in so that Wales doesn’t become a petri dish for socialist ideas. It is important that the Government continues to work with local authorities to regenerate our high streets. It’s imperative that we work with our local businesses to give them the best chance to thrive and grow and compete against those retail giants outlined by my colleague, James Evans, earlier, such as Amazon. That is the biggest threat that our high streets face. We need to make it just as easy and just as attractive to shop local.

We need to do more to promote the quality and uniqueness of the products that we are seeing from our small businesses. There are examples of best practices of how our chamber of commerce and councils are working across Wales, and we need to hone in on those examples, and roll them out across our country. There's some brilliant, innovative working that’s been going on in local councils in my own region.

I would actively encourage anyone that can shop local this Christmas to do so and, as other Members have said, to continue that trend all year round.

I call on the economy Minister, Vaughan Gething.

Thank you, Deputy Presiding Officer. 

Small Business Saturday will now be in its ninth year, and, of course, it's a focal point in the calendar to help celebrate the success and importance of micro and small businesses to the Welsh economy—as Hefin David, if he were here, would remind us, the lifeblood of the economy, accounting for over 98 per cent of enterprises in Wales. These are often family businesses, small manufacturers or local retailers, and they make an invaluable contribution to the fabric of our communities and contribute over half of private sector employment and about a quarter of turnover. So, we are actively promoting Small Business Saturday through our social media channels.

And I'm proud of our track record in developing a stronger entrepreneurial culture. Through Business Wales, the Welsh Government has demonstrated a long-term commitment to the SME sector of our economy to reduce the complexity in the way we support businesses here in Wales. Business Wales provides impartial advice from experienced business specialists, and, since 2016, has supported 12,400 individuals to pursue entrepreneurial ambitions, including helping over 5,000 entrepreneurs to start a business. Our support has led to the creation of over 25,000 jobs, demonstrating the impact and value to our communities. And providing the right support consistently should ensure that our values as a Government and our concern for the value of public money go hand in hand.

Over 3,000 of the businesses supported have improved practice on equality, diversity and resource efficiency. They've made a commitment to sustainability and our Net Zero Wales ambitions through our green growth pledge. In terms of value for money, we know that every £1 invested in Business Wales can be linked to a minimum of £10 and up to £18 of net GVA uplift a year.

In the last year, those businesses that receive support have a 77 per cent survival rate over a four-year period, compared with an unsupported average of 37 per cent. So, the support we provide makes a real difference. And many of our small businesses do show the potential for real growth potential. Last month, we celebrated our ten thousandth job milestone for the Business Wales accelerated growth programme. And through the pandemic, the Welsh Government has invested more than £2.6 billion in a targeted approach to support business. It is, and we have regularly said as a matter of fact, the most generous package within the UK, and that support for small businesses and Welsh communities has helped to protect hundreds of thousands of jobs that might otherwise have been lost. There was a point Huw Irranca made that small businesses aren't just economic entities; they are part of the community and they give back to their community in ways that you can't necessarily calculate in economic value.

Now, of course, it wasn't acknowledged by any Conservative speaker in this debate, but this Government has provided all businesses in retail, leisure and hospitality sectors with a rateable value of up to £0.5 million with a business rate holiday up to April next year—a much more generous package than small businesses in England receive. We're retaining funding in this year in case we do need to provide further emergency business support, as the pandemic, sadly, is far from over. So, we will continue to take further action to support stronger local economies and the essential job of tackling poverty. And I regularly hear calls for us to work hand in hand with businesses and local government, which is exactly what we have been doing. The £35 million package that I announced is together with local authorities to deliver additional business grant activity and targeted investment aligned with our priorities.

We will also use our procurement levers to help small business to benefit from public sector procurement opportunities. Now, in a recent debate on the foundational economy, I highlighted the success of small businesses and the NHS. I'm delighted to hear that, as a result of ongoing business advice, the family-run Swansea-based Slice & Dice secured £1 million of new business and created more new jobs through winning a place on the over £5.5 million NHS fresh vegetable supplier framework. So, we're doing what we said we would do and not simply talking the talk.

We're committed to do more on the benefits of procurement, and we're putting social partnership on a statutory footing through the Social Partnership and Public Procurement (Wales) Bill. But I have also spoken regularly in this Chamber, and outside, about needing to provide greater access and success for small and medium businesses to win a greater share of the even larger sum of private sector procurement and supply chains, where small businesses could and should have an even more successful role.

I won't respond to all the negativity in some of the comments made; I'd want to see a unifying approach for the way that this debate should be run and our support for businesses in each of our constituencies and regions. We're supportive of the motion, but the Government will vote against the motion to ensure we can reach the amendment, which we also support as well. I hope that, ultimately, all Members of the Senedd will manage to vote the same way in the last vote on this subject. But this Government will continue to provide and develop the support and opportunity for small businesses to ensure that they continue to flourish and provide good local employment opportunities in every community across Wales. Many thanks, Deputy Llywydd.

I call on Natasha Asghar to reply to the debate.

Thank you, Deputy Presiding Officer. I'd like to thank my colleague Paul Davies for bringing this important debate to the Senedd today. It's been refreshing to hear all of your love and respect for small businesses, and finding out where you have your hair cut, Luke Fletcher, and where you buy your baps, Huw Irranca-Davies, as well as where you go for a pint, Gareth Davies. I'd like to echo my colleague Gareth Davies's sentiments that he mentioned earlier: there is absolutely no doubt in my mind, and I'm sure all of yours as well, that small and medium-sized businesses are the lifeblood of the Welsh economy, providing jobs to many and driving growth. It's a fact that 99.4 per cent of businesses in Wales are small and medium enterprises. Embedded in the communities that they serve, they contribute to a sense of community, identity, providing vital goods and services and contributing to local resilience, which has been invaluable during the pandemic. As my colleague Laura Anne Jones mentioned, they have adapted to all situations presented to them during the pandemic, and they genuinely deserve credit for that.

Small businesses in Wales are rebuilding and recovering at present from the effects of the coronavirus—it's no secret. But, in doing so, they do face a number of challenges. Problems in the supply chain are causing shortages, which I know from my discussions with representatives from the logistics industry, who are working tirelessly and very, very hard to address them one by one. The UK Government has announced a package of measures to ease these supply chain pressures, with up to 4,000 people being able to take advantage of training courses to become HGV drivers. I also welcome the recent announcement by the Welsh Government—yes, I did say something positive there—that £10 million is being made available to help train people in jobs in Wales hit by labour shortages, including HGV drivers and hospitality workers.

Essential to the recovery of small businesses is the need to keep costs down and address the growing skills gap. It is a matter of concern that the Federation of Small Businesses reports that 76 per cent of SMEs in Wales are facing rising operating costs. Thirty-eight per cent report that the lack of availability of the right staff is holding them back, and nearly a quarter of employers state difficulty in finding individuals with the right skills for the job is a struggle that's real.

To sum up, Deputy Presiding Officer, it's vital that the Welsh Government does all it can to create the conditions in Wales that will enable small businesses to grow and to thrive. I was happy to hear that the Minister is going to be promoting Small Business Saturday via social media, and that's great to hear. As my colleagues Paul Davies mentioned, the Welsh Government has made positive moves, but more needs to be done and can be done. James Evans and Luke Fletcher mentioned that they were the lifelines during the pandemic, for which I and I know every single person here will certainly thank every single person who's worked in these small and medium business, because, without them, many of us would have struggled throughout the pandemic. What Huw Irranca-Davies said when he was speaking was that we should celebrate them everyday, and I echo that and certainly believe that credit is due where credit is earned. Providing economic support, helping to reduce the burden of business rates and ensuring the supply of staff with the right skills will demonstrate it's our commitment to the development of smaller businesses, supporting our economy and building the strong and resilient communities we all ultimately want to see flourish and thrive all across Wales, and that is why I hope that you will all support our motion here today. Thank you very much.

The proposal is to agree the motion without amendment. Does any Member object? [Objection.] Yes. I will, therefore, defer voting on the motion until voting time. 

Voting deferred until voting time.