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Businesses’ Brexit fears dismissed

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Airbus: Warned of risk of capital flight

THE RECENT conduct of Foreign Secretary Boris Johnson has led to fears that the future of the UK’s business relationships with Europe are of secondary interest to senior government ministers.

A strongly-worded statement from the CBI, warning policy makers to ‘focus on business priorities and put evidence above political ideology’ was greeted with Mr Johnson remarking ‘f**k business’.

Those remarks were preceded by the Foreign Secretary being recorded saying that the border with Ireland was a minor issue of little consequence in the context of Brexit.

The CBI subsequently suggested that it will ensure negotiators on both sides ‘are well equipped with the unequivocal economic facts’.

Whether the facts fit the Foreign Secretary’s preconceptions of what Brexit might mean for the UK’s businesses is open to question.

AIRBUS RAISES STAKES

A similar gap between reality and ideology was exposed by the warning from Airbus that – in order to continue to comply with the European regulatory framework – it might have to move its base of operations from Broughton in Clwyd, where it supports 6,500 directly employed jobs and businesses and the economy over a much wider area.

In the absence of a Brexit agreement, UK aerospace companies will not be covered by existing approvals. More than 10,000 original aircraft parts originate in the UK, the manufacture of which is covered by tight regulations requiring certification by the European Aviation Safety Agency. Should a single parts supplier not be certified, its parts cannot be installed and aircraft will not be delivered.

If a supply chain agreement is not reached with the EU, the consequences for the aviation industry selling into the EU trading bloc will be a disaster for the UK.

BUSINESSES TOLD TO BUTT OUT

However, the unwelcome intervention of facts in the Brexit narrative roused Health Secretary Jeremy (H)unt to tell the BBC’s Andrew Marr that talking about job losses risked undermining the government in its negotiations with the EU.

“It was completely inappropriate for businesses to be making these kinds of threats, for one simple reason. We are in a critical moment in the Brexit discussions. We need to get behind Theresa May to deliver the best possible Brexit, a clean Brexit.”

Mr Hunt’s comments were supported by leading Brexit enthusiast Liam Fox, the Secretary of State for International Trade, who also suggested that businesses warning the government based on their own detailed knowledge of the regulatory regimes under which they work were somehow placing the UK Government’s negotiating position – which is as yet both unknown and possibly undetermined – at risk.

The key economic issue for businesses is ensuring the sort of continuity in trading arrangements which secures jobs and encourages investment. Large businesses need a significant amount of time to make decisions on the allocation of resources, particularly in the face of unpredictable trade policy by twitter approach of the US Government. Short of certainty, and faced with a capricious transatlantic trading partner which scraps trade agreements and treaties at short or no notice, businesses are understandably twitchy about their inability to plan and the absence of meaningful interaction with them by the UK Government’s crack Brexit team.

In a carefully-phrased statement to MPs, Business Secretary Greg Clark told MPs: “Any company and any industry that supports the livelihoods of so many working people in this country is entitled to be listened to with respect.

“The government has been clear that we are determined to secure a deal with the EU that meets the needs of our aerospace firms and the thousands of people whose livelihoods depend on them.”

IRISH TRADE KEY FOR WEST WALES

Meanwhile, businesses have struck back at the apparent indifference of the UK Government’s key Brexit ministers to the interests of businesses which stand to be affected directly should the UK reach no regulatory deal – or a poor regulatory deal – with the EU.

Business groups the CBI, Chambers of Commerce, Federation of Small Business, the Employers’ Federation, and the Institute of Directors are placing pressure on the government to reach agreement on trade, customs, and immigration.

Pembrokeshire’s MPs, Simon Hart in Carmarthen West and South Pembrokeshire and Stephen Crabb in Preseli Pembrokeshire, are in an intriguing position over the issue of Irish trade.

With major ferry ports in Pembroke Dock and Fishguard, both Conservatives have a dog in the race to ensure that trade with the Republic of Ireland is at least maintained at current levels.

100,000 lorries were carried to Ireland via ports in Pembrokeshire in 2015. Any disruption of that trade, by the introduction of customs and immigration checks for example, would significantly reduce the attractiveness of west Wales’ ports to businesses trading with Ireland. That is not, however, a one way street. The Irish Government is also keen to maintain access to the UK as an access point to mainland Europe.

While the ports are not in themselves major employers, the ‘ripple effect’ of any loss or reduction in through traffic and any subsequent job losses could be significant. And concerns have been magnified by Stena’s decision to scrap a significant investment plan in Fishguard.

When we asked to respond to the Foreign Secretary’s views on the Irish Border issue and the importance of trade with Ireland to Pembrokeshire, Simon Hart said: “I have spoken (very informally) to [Boris Johnson] to make that point, which he says he recognises. The border issue might be minor in the overall context of Brexit but it is nonetheless very important.”

Stephen Crabb told us: “I have said right from the start that the issues over trade between the UK and Ireland, including the question of the Northern Ireland border, are some of the most complex and important of the Brexit negotiations.

“For us in Pembrokeshire it is important because of our trade links with Rosslare and I have raised this matter with Ministers in Ireland, the Cabinet in Westminster. The commitment that the Prime Minister has given that there will be no additional trade barriers for East-West trade between the UK and Ireland is crucial and reflects the points that I and others have been putting to her.”

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Businesses will soon be able to access funding from the Welsh Government

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BUSINESSES in Pembrokeshire which have been impacted by the move to Alert Level 2 Covid-19 measures in Wales will soon be able to register or apply for Welsh Government funding.

The First Minister announced a £120m package of support for nightclubs, events, retail, hospitality, leisure and tourism businesses and their supply chains, impacted by the move to Alert Level 2.

An eligibility checker for businesses has now gone live.

Businesses are urged to check their eligibility at: https://fundchecker.businesswales.gov.wales/businesssupport?_ga=2.234856926.1944247233.1641292011-360841121.1641292011

The above link also features further information and a series of FAQs about the latest round of support.

The funding will take the form of three elements.

Non Domestic Rates (NDR) linked funding of up to £6,000.

Retail, hospitality, leisure and tourism business who pay Non Domestic Rates will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value.

Businesses will need to re-register their details with Pembrokeshire County Council through an online process in order to receive their payments.

The Council will also deliver a discretionary fund to support sole traders, freelancers and businesses who don’t pay rates, with funding of £500 – £2000.

The Local Authority discretionary fund will be via a short application process with sole traders, freelancers and taxi drivers able to apply for £500 and businesses that employ people but do not pay business rates will be able to apply for £2,000.

Pembrokeshire County Council plans to open the schemes on Monday 10th January for the NDR related fund and Monday 17th January for the Discretionary fund.

See notes below for further information on the way the NDR linked grant and discretionary fund will be allocated.

The third element of the funding is a reopening of the Welsh Government’s Economic Resilience Fund (ERF).

On top of NDR based funding, this will see funds of up to £25,000 made available for severely impacted hospitality and leisure businesses – and their supply chains.

As with previous ERF rounds, this will support businesses who have seen a reduction in their turnover of more than 60%.

Details of the application and registration process will be published on the Authority’s Business Advice and Support pages: https://www.pembrokeshire.gov.uk/business-advice-and-support

The funding package is designed to support businesses impacted by the spread of Omicron through the period 13 December 2021 to 14 February 2022.

Please note that as a result of the new emergency support packages, the Welsh Government is withdrawing its £35m Business Support Fund, announced in November, in order to process emergency payments as soon as possible.

Any expressions of interest received will be notified of this directly.

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£120m financial support for businesses in Wales impacted by Omicron

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BUSINESSES in Wales impacted by the rapid spread of the Omicron virus will be eligible for emergency financial support under a new Welsh Government support package.

The Economy Minister, Vaughan Gething, has announced the details of the £120m funding which will be available for retail, hospitality, leisure and tourism business and their supply chains affected by the move to alert level two, as announced by the First Minister on Wednesday 22 December.

Under the latest package, retail, hospitality, leisure and tourism business who pay Non Domestic Rates will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value. Businesses will need to re-register their details, through a quick and easy online process, with Pembrokeshire County Council in order to receive their payments.

Registration will open via local authority website from the week commencing January 10, 2022

The Welsh Government has decided to extend this support to non-essential retail so that smaller shops, and Travel Agents will be supported and our high streets can continue to thrive. In England, support is not available to non-essential retail.

In addition, impacted hospitality and leisure businesses and their supply chains will be able to apply for top up funding from a new Economic Resilience Fund (ERF). Eligible businesses can apply for grants of between £2,500k – £25,000, with grants dependent on their size and number of employees. The application window for ERF will open in week commencing 17th January 2022 with payments starting to reach businesses within days.

Local Authorities will also administer a Discretionary fund for business and sole traders who do not pay rates. The fund will provide £500 to sole trader and freelancers and £2,000 to employing businesses in impacted sectors.  Further details to follow on business.wales.

An eligibility checker which will help businesses to gauge how much they can expect to receive under the new support package will be available on the Business Wales website by the start of 2022.

Economy Minister, Vaughan Gething, said: “We fully understand the continued challenges faced by businesses, however we are facing a very serious situation in Wales. A wave of infections caused by the new, fast-moving and very-infectious omicron variant is headed our way, this means taking early action to try and control its spread – and limit the impact on Welsh businesses.

“Since the start of the pandemic, we’ve provided over £2.2bn of support to businesses throughout Wales to help them manage their way through difficult circumstances.

“We will continue to monitor the impact of the spread of Omicron on businesses in Wales, and will consider whether additional emergency funding is needed in the new year.”

Business.Wales will be updated with details, frequently asked question and support guidance.

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Business

Seeking advisors from Ceredigion Businesses – Your chance to get involved with the Mid Wales Growth Deal

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Growing Mid Wales logo

ARE you a strategic business leader in Ceredigion and are you passionate and committed to the interests of Mid Wales? If so, you are the business leader we are looking for!

The Growing Mid Wales Board is setting up an independent body, the Economic Advisory Group, to help advise on the Mid Wales Growth Deal Portfolio of programmes and projects – to ensure it delivers tangible outcomes for our economy.

The new advisory group will provide business sector experience and knowledge to help assess the various proposals as they move through to the next stages of development.

We’re looking for Industry Leaders from all sectors who are able to demonstrate strategic thinking and have significant direct business leadership experience to help advise the direction of the strategic Portfolio.

For a conversation about the opportunity, email Paul Griffiths, Growth Deal Adviser: paul.griffiths2@powys.gov.uk.

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