Minister has mammoth job to help rebuild our economy
IT’S been an important week for Wales’ business community. This week, Wales moved to Alert Level 2, which means that hospitality can open indoors and more businesses can reopen for the first time since Christmas.
That Wales is successfully moving through its relaxation of restrictions will be heartening for thousands of business owners who desperately need a successful summer to help shore up their future.
On top of this, the recent reshuffle of the Welsh Government cabinet brings with it a new Economy Minister – Vaughan Gething.
The new Economy Minister takes his place at a time when we must all flex every muscle to ensure that we rebuild our economy successfully.
This is going to be a mammoth job and at FSB we are looking forward to working with the new Economy Minister on exactly how we make this a reality.
An economic recovery is something that is going to make a huge difference to the life of every single person in Wales and we cannot afford to get it wrong.
To recover from the pandemic our economy needs to grow, but we cannot take regrowth for granted. There is a herculean task ahead of us, and we’re looking forward to working with Mr Gething on a bold plan for Wales’ economy.
Wales’ smaller businesses create 62% of private sector employment and 37% of Wales’ turnover. Put bluntly, Wales is a nation of small businesses, and we cannot manage without them.
Its also important to remember that Wales’ businesses are not only at the centre of our economy. For all of us, they represent so much more. Wales’ businesses are at the heart of our communities; they are the reason that we have vibrant and diverse high streets, local jobs and investment. Furthermore, throughout the pandemic we have seen many examples of businesses that have supported their communities through difficult times.
We also know that, alongside the major challenge of rebuilding the economy, many other challenges face Wales’ economy and our business community. One such issue which will have a huge impact on all of us, is how we meet the climate change challenge.
In the recent reshuffle the Welsh Government has made a clear statement about the centrality of sustainability to its programme, and this is something that FSB and Wales’ business community stand behind.
From FSB’s point of view, this agenda needs to include support for SMEs to plan and make changes.
Our research shows small firms were already looking at five to 10 years as a realistic time to move to electric vehicles, so there is a need for a strategy to shift to such modes for businesses within this timeline.
The UK and Welsh governments should look to incentivise this shift by introducing tax incentives or scrappage schemes. At present, the cost of electric vehicles and the lack of charging infrastructure are key barriers for Welsh businesses.
FSB would also want to see support from Business Wales in the form of a SME environment advice line, which would act as a first port of call for those firms which want to take steps on sustainability and need some support to do so.
We know that there are many ways for SMEs to engage with the sustainability agenda and look forward to working with the new ministry on advancing a plan that engages and supports SMEs to play their part.
There is a huge task ahead of all of us, but FSB Wales looks forward to working alongside the Welsh Government to deliver for businesses across the country and to ensure that Welsh businesses meet their potential while supporting our shared aims on protecting the environment.