Janet Finch-Saunders:
"Despite an increase in consumer and business confidence, and 0.8% growth in the third quarter of 2013, signalling the onset of economic recovery, the fact remains that Wales is lagging behind. Unemployment is the highest in the UK, with 7.8% out of work, and the claimant count in Wales has never been below the UK average since 1997. Gross value added is significantly behind that of the UK average at 75.2%, compared with 98.6% in Scotland. New business start-up rates of 9.4% are well behind the UK average rate of 11.4%. I think that it is fair to say that we need to see a reversal of fortunes to improve the outlook for the people, businesses and economy of Wales.
"Micro, small and medium-sized businesses are the fulcrum of the Welsh economy, constituting some 99.3% of all enterprises. If we are truly to get our economy growing, it will be through establishing the right conditions to allow these businesses to develop, grow and excel. This will only be possible by ensuring access to the financial and practical support necessary to strengthen the sector. Smaller firms need easier access to financial support and sound business advice. The report by Professor Dylan Jones-Evans put into stark terms the desperate nature of the current situation. The value of borrowing-approved facilities to SMEs in Wales has fallen by 30% since the third quarter of 2011, demonstrating that much-needed funding is still beyond the reach of those businesses that could fire the engines of economic recovery. Professor Jones-Evans has further raised the possibility of a feasibility study into establishing a Welsh development bank. This would consolidate all available funding streams into one designated body, levelling the playing field in favour of the smaller businesses that sometimes lack the savvy or the capacity to otherwise locate them.
"I wish to put on record the importance of support for our microbusinesses. These enterprises have increased sixfold since the findings of the Bolton report in the 1970s and now constitute 94.6% of all Welsh enterprises. This sector has actually managed to grow in number by around 0.5 million since the onset of the recession, demonstrating its viability and its increased importance to our economy. In Lord Young's report on this sector, however, it was found that three quarters of microbusinesses are sole traders that have no employees, and were the right support forthcoming for these firms to employ just one member of staff, it would eradicate the unemployment rate in Wales and get our economy going and growing. The Welsh Conservatives believe in providing business rate relief to all those with a rateable value of up to £12,000—that has been our policy for years—and tapered relief for those up to £15,000. When combined with increased access to financial assistance and other business support, this would greatly improve confidence in this sector, increasing the number of who take those who take the risk of employing additional staff or accessing component financial products.
"The Welsh Conservatives’ ‘Invest Wales’ document outlines our plans for encouraging lending to micro, small and medium-sized businesses. We believe, as does the stage 2 report on SME access to finance, that access to finance should be localised with six Invest Wales regions to match the geo-specific challenges faced across Wales. Additionally, each branch of Invest Wales would have designated staff to provide hands-on support with the intricacies of running a business and offer expert advice on the local market. It is this kind of hands-on, business-friendly approach that the Welsh Government should be taking to inspire economic growth in Wales with the announcement on the full devolution of business rates and financial powers to improve our infrastructure. The ball is now firmly in the court of the Welsh Government. The onus is on you to provide a comprehensive plan on how you intend to support the growth of our SME sector in Wales by improving access to funding and support. Our Welsh businesses face challenges that are not intractable but nor are they inconsequential. It is up to the Welsh Government to provide the support that these businesses want, need and certainly deserve."