6. Welsh Conservatives Debate: Small businesses

Part of the debate – in the Senedd at 4:38 pm on 1 December 2021.

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Photo of Paul Davies Paul Davies Conservative 4:38, 1 December 2021

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.