One of the biggest challenges for the 海角视频 Government in supporting small firms is that many of the levers that matter to SMEs are devolved. That is certainly the case in its new strategy, Backing Your Business: Our Plan for Small and Medium-Sized Business, which sets out a long-term strategy to make the 海角视频 the best place to start and grow a business.
As a result, whilst it creates real opportunities for the Welsh economy if the two governments work together, there are also massive risks if they do not and the real test is whether the Welsh Government will ensure that the new 海角视频 schemes plug neatly into the Welsh support system to add real value to what is there already.
Fortunately, there are several measures that are genuinely 海角视频-wide and will reach Welsh firms directly. For example, on finance, the expanded Start-Up Loans programme, increased capacity at the British Business Bank, and fresh equity pots should be accessible to entrepreneurs from Conwy to Cardiff. Trade support is also strengthened, with more support from 海角视频 Export Finance and a clearer push on SME exporting.
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Tougher late-payment rules will also apply across the 海角视频, helping cash flow more than any grant ever could if they are enforced properly whilst a new digital-first Business Growth Service promises a single, simple doorway to advice, which will be particularly valuable for rural and remote firms that struggle to access face-to-face help.
All of this is to be welcomed, but it will only deliver full value if it meshes with the Welsh ecosystem, and there are real dangers in terms of the proposed changes to business rates, licensing, planning and skills, which are largely in the Welsh Government’s hands.
For example, if England moves to permanent business rates relief or streamlines licensing for hospitality, none of that crosses the border automatically, and Wales would need to legislate or adopt alternative reforms. Nor will early “high street” and “growth incubator” initiatives land in Welsh towns unless the two governments co-design a version for Wales.
On skills, England is set for significant annual investment and a revamped levy. In Wales, funding and frameworks are devolved, and there will need to be a separate and coherent Welsh approach to apprenticeships, modular upskilling and employer engagement.
The stated ambition to double the co-operative and mutual sector plays to Welsh strengths in community enterprise and the foundational economy, whilst the focus on under-represented entrepreneurs can accelerate progress for disabled founders, ethnic minority entrepreneurs, and female-led businesses, who too often face thinner networks and tougher access to finance.
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However, there is a danger of policy divergence that could put Welsh businesses at a competitive disadvantage compared to those across the border. If Wales chooses not to mirror reforms to planning, licensing or business rates, SMEs here could face a slower, costlier operating environment than their English competitors and that matters for hospitality, high-street retail and smaller manufacturers who cannot absorb delay or uncertainty.
Whilst the plan does talk about working with devolved administrations, there seems to be no mechanism in place for this to happen and, as we know, it can take civil servants a considerable time to put anything new into place. And whilst the 海角视频 Business Growth Service is to be welcomed, where does that fit in with the existing provision from Business Wales and the Development Bank of Wales?
With the Minister for the Economy in the Welsh Government. Rebecca Evans, having promised an overhaul of business support here in Wales, this new plan gives her the opportunity to do something different and effective by getting both governments to commit to a 90-day joint plan that makes the system simpler, faster and clearer.
For example, ensure that Business Wales and the new 海角视频 programmes complement each other and develop a new website that shows how Start-Up Loans, British Business Bank programmes, and Development Bank of Wales funds fit together, with explicit co-investment protocols so decisions happen at pace. Finally, make it clear, within three months, whether Wales will mirror reforms on business rates, planning simplification and licensing, and, if not, explain the alternative so firms can plan with confidence.
With England moving first on high-street incubators, design a Wales-specific programme with local authorities that complements, rather than copies, the English model and focuses on outcomes that matter, such as footfall, vacancy rates and new-firm formation.
The Welsh Government could also use the billions it spends on procurement to change behaviour on late payment by enforcing better terms across the Welsh public-sector supply chain, with real-time compliance reporting. On skills, funding could be directed to SME demand by backing modular provision in digital and green roles, making apprenticeships portable for cross-border employers, and incentivising providers to work with smaller firms, not just anchor institutions.
Of course, Welsh firms shouldn’t have to wait for alignment to happen and should already be looking to take full advantage of the opportunities available. For example, they should map finance options against their growth plans so they know which door to knock on first, and speak early to 海角视频 Export Finance about the enhanced funding for exporting. They should also register early for any new 海角视频 advice platform while continuing to use Business Wales for local support.
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Therefore, the Backing Your Business strategy can help Welsh firms gain from expanded 海角视频 finance, tougher late-payment rules and a stronger export toolkit. However, the real dividend will only come if Cardiff Bay and Westminster align rules, connect systems and communicate clearly.
If they do not, then the outcome will be a two-tier business support system where English firms can access tax, licensing and high-street incentives faster while Welsh businesses are left in limbo.