Brexit ‘holding back investment’

FEARS over Brexit are putting the brakes on businesses investing in Gwynedd, it has been claimed amid continued uncertainty over its impact on the local economy.

While it remains unlikely there will be certainty on an agreement between the UK Government and the EU before the end of 2018, a new Gwynedd Council report suggests the true impact implications of Brexit won’t be known for some time.

According to its economic chief, ongoing lack of clarity could already be stopping more jobs being created in the county, where 58.1% voted to remain in the 2016 referendum.

Sioned E Williams told the Education and Economy Scrutiny Committee meeting in Caernarfon: “There are businesses in Gwynedd which are extremely concerned about what the future holds. There’s a business in Llanberis, for example, which employs over 100 people and had plans to invest but will now no longer pursue this. The lack of clarity over access to outside markets is having an impact on these businesses and we are also aware of other instances where the ongoing uncertainty is causing companies to hold back from expanding further. These are Gwynedd jobs we’re talking about here. We often hear of large companies such as Airbus and other multinationals, but we may not always appreciate there are so many smaller businesses in Gwynedd which are part of the supply chain. There are so many local businesses that are reliant upon exports. The challenge for us as an authority is to ensure how we communicate with affected companies and ensure they have access to the £50m EU Transition Funding announced by the Welsh Government to help Welsh businesses and public services plan and prepare for Brexit.”

The Prime Minister has reiterated her government’s commitment to maintain EU funding levels of around £300m a year for Welsh agriculture until 2022.

But pressed on funding beyond that, she said: “We’ll be making sure we get a system that is in the interests of farmers across the UK.”

The Farmers’ Union of Wales has already warned that rural Wales would “break down” without a Brexit deal with the EU.

Official UK government analysis suggests the Welsh economy would take a 9.5% hit over 15 years if the UK leaves the EU without a deal and moves on to World Trade Organisation rules.

Committee chair Cllr Beth Lawton said: “Usually there’s a cross section of positive and negative comments in any debate, but we’ve heard a particularly negative picture being painted.”