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Development Bank ‘not a guaranteed solution’

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Lloyds: In Llandovery

A NEW report by a think tank has assessed the potential of a public development bank for Wales to boost lending to firms and promote economic development locally.

The report by the Public Policy Institute for Wales describes evidence that ‘bank branch closures are having a negative impact on individuals and businesses in Wales, but more specific research is need to ascertain what impact bank branch closures is having on individuals and communities. Finding out the extent to which vulnerable areas are affected by bank branch closures can also help identify which specific services can be provided in the future.’

The report states: “However, even the most extensive public banking model, opening community banks would not be able to replace the branches that have been closed in Wales in recent years.”
On ways to protect banking services it comments: “A public development bank is potentially useful option, but not a guaranteed solution.”

Plaid Cymru Mid and West AM Simon Thomas said: “We need action from Governments in Westminster and Wales on bank branch closures.

“It is unacceptable that the bank network is being stripped from rural Wales. We cannot have a gap in the banking services available to rural and urban Wales.

“Plaid Cymru’s Westminster leader Liz Saville Roberts has called for a change in the law to protect the last bank in town. We are now seeing often in our communities from Llandysul to Llanidloes towns left without a bank.

“While bank branches are expensive to maintain and are used by fewer people in the past they are still an important resource. The report highlights research by the Federation of Small Businesses that bank branch closures affect small businesses in rural communities, as they are more likely to require cash purchases than in urban areas.

“High street banks have a duty to consult effectively with the local community over closures. While banks are private companies making commercial decisions, in effect access to banking is essential for modern life and participating in democracy.”

“The Labour Government in Cardiff Bay should be looking at how other financial institutions like Finance Wales and credit unions have a role to play. Other ways to protect banking services for small businesses and individual customers like developing the services provided by the Post Office will be hampered by the closure programme of successive Westminster governments of different political colours.”

The report identifies problems with lending to small and medium sized businesses, automation has made banks more geographically and operationally distant from small businesses.

Bank closures contribute to this problem according to the Federation of Small Businesses.

Mike Cherry, FSB National Chairman, said: “The rapid pace of bank branch closures across the UK presents some very real and tough challenges for small businesses. FSB members highly value the face-to-face interaction they receive in-branch, particularly when making complex financial transactions, with staff who often have a greater understanding of their business and the local economy. In addition, many of our members deal heavily in cash and cheques and need access to over-the-counter banking facilities on a regular basis.

“Small businesses are keen to embrace the opportunities of the digital economy. However, barriers towards digital inclusion, such as unreliable broadband connectivity, and a lack of confidence in using digital services creates serious challenges. These are some of the reasons which explain why the protection of in-branch banking is so important for financial inclusion.”

Large banks were three times more likely to shut a branch in Wales than in London and the south east of England, and five of the top ten areas affected by the 600 branch closures in Britain in 2015-2016 were in Wales – Powys, Denbighshire, Gwynedd, Conwy, and Carmarthenshire.

The FUW is particularly concerned as internet banking is not always an option in rural areas; many people will not have an appropriate internet connection- if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.

Speaking earlier this summer, FUW President Glyn Roberts said: “The closure of rural banks has a detrimental effect on rural areas, as they serve not only villages and small towns but many of the neighbourhoods in surrounding areas, as well as providing employment to local people.

“Closures are a great loss to residents and local businesses, particularly the elderly or residents who are unable to travel to the nearest town. The closures will of course also affect small businesses, as they will have to travel further afield for their banking needs.
“In addition, internet banking is not always an option in rural areas; many people will not have an appropriate internet connection if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.
“For many telephone banking is impractical, as they prefer to deal with their personal finances on a one-to-one basis and mobile banking is limited in many rural areas. It is worth considering as well that some people may not be able to get to mobile banks during the short time they are present in villages.
“With more and more rural services and businesses being closed down, we must also acknowledge that it is becoming less and less attractive for young families and indeed business owners to remain in the countryside.
“If the problem of rural depopulation is not addressed with some urgency it could have severe consequences for our rural communities and with that also our rural economy.
“It is clear that if we want to ensure that Wales develops its full potential in being a rural economic powerhouse, we must make it attractive for working families to stay and also encourage vital services like business banking to remain available in our countryside.
“The provision of acceptable broadband services is an increasingly critical part of meeting the needs of rural Wales.”

A report from the British Infrastructure Group found nearly a quarter of Welsh constituencies appear in the worst 20 constituencies in the whole of the UK for broadband speed.

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Politics

Covid-19 restriction relaxations in Wales brought forward

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THE WELSH GOVERNMENT will be accelerating elements of its programme to relax Covid-19 restrictions as cases of new infections continue to fall across Wales, the First Minister today announced.

People will be able to form an extended household, visit the gym or take part in organised outdoor activities a week earlier than planned, as the public health situation – and vaccination rates – continue to improve.

The First Minister last week set out a detailed timetable for moving Wales firmly into alert level three. But some of these measures will now be introduced sooner than planned as cases have fallen markedly from 37 cases per 100,000 people to fewer than 21 per 100,000 this week.

The pressure on hospitals also continues to ease. Confirmed cases in hospital beds continue to reduce, and now stands at 89. This is 26% lower than last Thursday and is the lowest position since 22 September 2020.

The planned opening date for organised outdoor activities and outdoor wedding receptions will be moved forward to Monday 26 April from 3 May.

And, from Monday 3 May, a week earlier than previously signalled, gyms, leisure centres and fitness facilities will be able to reopen for individual or one-to-one training. Extended households will also be allowed again, enabling two households to meet and have contact indoors.

First Minister, Mark Drakeford said:

“The public health situation in Wales continues to improve thanks to everything you are doing to help us control this awful virus. Cases of the virus are falling and our incredible vaccination programme continues to go from strength to strength.

“Last week, we set out our programme to further re-open the economy and relax the restrictions we have lived with for so long, as part of our careful, step-by-step approach to keeping everyone safe. This week, because of the improvements we continue to see, we can bring forward some of our plans.

“This is only possible because of the efforts everyone is making to protect themselves and their loved ones.”

From Monday 12 April, the following relaxations will go ahead:

  • The full return of children to schools for face-to-face education, all post-16 learners will return to further education and training centres, and university campus’ will be able to open for blended face-to-face/online learning for all students;
  • All remaining shops will reopen, completing the phased reopening of non-essential retail;
  • All remaining close contact services will open, including mobile services;
  • Travel restrictions on traveling into and out of Wales will be lifted. However, restrictions on travel to countries outside the Common Travel Area without a reasonable excuse, remain in place. The Common Travel Area means the United Kingdom, the Channel Islands, the Isle of Man and the Republic of Ireland;
  • Wedding ‘show-arounds’ by appointment are allowed;
  • Restrictions on political canvassing are removed, subject to canvassers doing so safely.
  • Further easements to restrictions in the coming weeks will be subject to the public health situation remaining favourable. These will be confirmed at the next three-weekly review of the coronavirus regulations on 22 April.

On Monday 26 April:

  • Outdoor attractions, including funfairs and theme parks, would be allowed to reopen;
  • Outdoor hospitality can resume, including at cafes, pubs and restaurants. Indoor hospitality will remain closed except for takeaways;
  • Organised outdoor activities for up to 30 people can again take place (previously Monday 3 May);
  • Weddings receptions can take place outdoors for up to 30 people (previously Monday 3 May).

On Monday 3 May (previously Monday 10 May):

  • Gyms, leisure centres and fitness facilities can reopen. This will include individual or one-to-one training but not exercise classes;
    Extended household will again allow two households to meet and have contact indoors.
  • As set out in the revised Coronavirus Control Plan, a small number of outdoor pilot events of between 200 and 1,000 people are also being planned.
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Ceredigion MS and MP call on Welsh Government to support agricultural shows

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ELIN JONES MS and Ben Lake MP have called on the Welsh Government to provide financial support to all agricultural shows to see them through to 2022 

A number of shows up and down the county were forced to cancel last year, starving farming communities of annual chances to meet acquaintances, denying traders a vital market and rural charities of fundraising activities and ultimately causing significant losses to the rural economy. 

About seven million people attend agricultural and county shows across the UK every year, and numbers were growing before the pandemic, according to the Association of Show and Agricultural Organisations (ASAO), the voice of the agricultural show industry. 

Ben Lake MP calls on Welsh Government to support agricultural shows

In 2019, agricultural shows across the UK generated £128.6m of income, the ASAO figures show. But the mass cancellation of physical shows last year led to a £36.5m loss, while the impact on the wider economy was an estimated loss of £810m. 

Some agriculture show organisers in Ceredigion have already announced cancellations of their 2021 events. These include: Aberystwyth County Show, Lampeter Stallion Show, Barley Saturday, and Llanilar Show. 

With the possibility of further show cancellations this year, Elin Jones MS and Ben Lake MP have called on the Welsh Government to provide financial support to all agricultural shows to see them through to 2022.  

Elin Jones MS said: “For many farming families in Ceredigion, the agricultural show season is the highlight of the year. Every agricultural show plays an important part in promoting our nation’s rural sector, in addition to the rich array of traditions and history associated with rural Wales. 

“Whilst virtual agricultural shows went some way to filling the void left by the cancellations in 2020, nothing replaces the buzz of live outdoor shows.  They give opportunities for communities to come together and provide a vital hub for the farming and rural community to meet, socialise and conduct business.” 

Ben Lake MP added: “Agricultural shows and societies are a crucial feature of the annual calendar for most rural communities, showcasing the heritage of key elements of farming and rural life in Ceredigion. 

“With the possibility of further show cancellations in 2021, we believe it is timely for the Welsh Government to consider providing a one-off grant payment to all agricultural shows to ensure that they are able to see this pandemic through.” 

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16 and 17 year old’s urged to register to vote in this year’s Senedd Elections

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ELIN JONES, Ceredigion’s Member of the Senedd, has urged everyone who will be 16 years old by or on the 6th of May – Senedd Election Day – to register to vote. This is the first time 16 and 17 years olds will be able to vote in a national election in Wales.

Speaking directly to young people in Ceredigion, Elin said: “One of my proudest achievements from the last Senedd has been helping to pass the law that has extended the vote to 16 and 17 year olds.

“This is the biggest change in voting rights in Wales for many, many years.

“So many aspects of young people’s lives have been turned upside down by the pandemic, so it’s completely right that you have the democratic right to express your opinions on how things have been run.

“We now have a fixed date for the election, providing the Covid situation doesn’t change. So if you will be 16 years old or older by the 6th of May, then make sure you register to vote. Your voice counts, and I hope that you will use it.”

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