Stephen Crabb MP: "Small business is at the heart of economic recovery in rural Wales"
15 May 2014 11:36 AM
Wales Office Minister
visits Newtown’s successful small
businesses
Small businesses are the
backbone of the Welsh economy and are creating jobs and boosting growth across
Wales.
That is the message from Wales
Office Minister Stephen Crabb MP today (15 May) who will undertake a series of
visits to Small and Medium Enterprises (SMEs) in Newtown.
Mr Crabb will meet executives
from: safety and marine manufacturer, Makefast Ltd; from retail display
manufacturer, Stagecraft; and wheel balance weights’ manufacturer, Trax
JH Ltd. He will highlight the package of measures announced in the Budget to
support Welsh businesses.
Wales Office Minister, Stephen
Crabb MP said:
I am delighted to take part in
this visit, as manufacturing is at the heart of this economic recovery and
small businesses are the engine of job creation in rural
Wales.
Wales has demonstrated that it
is a great place to start and develop a business - small companies have been
responsible for the creation of approximately 630,000 jobs.
The UK Government recognises the
importance of small businesses in assisting economic growth. That is why last
year, we launched our Small Business: GREAT Ambition campaign and package of
support for small business.
The measures announced in the
Budget further build upon this support. I look forward to discussing the
measures with business directly, as I am determined that all parts of Wales
should share in the fruits of the economic recovery. This is particularly
important in rural communities, where there are often additional challenges to
running a business.
Marine and safety hardware
manufacturer Makefast Ltd secured its hat-trick of innovation accolades at the
Powys Business Awards in 2013. The company exports to countries including the
USA, Japan and Australia, and has experienced growth of 12-14%
year-on-year.
Mike Mills, Director of
Operations at Makefast Ltd, said:
I am very pleased to see that
the UK Government recognises the importance of the manufacturing industry as a
means of creating jobs and generating wealth for the UK at large. I am very
happy to welcome the Minister and look forward to discussing with him some of
the specific issues we have here in mid-Wales.
Established in 1990, Stagecraft
designs, manufactures and installs a wide range of timber based merchandising
displays and shop fittings. The company recently won its largest ever contract
from Waitrose, moving to larger premises on the Vastre Enterprise Park, where
it currently employs 30 people.
Seb Smith, Managing Director at
Stagecraft, said:
We welcome any new measures that
assist growth and provide support to manufacturing businesses operating in
Wales.
Founded in 1989, Trax JH employs
45 people at its Newtown and Welshpool sites. The company exports to over 25
countries and last year secured a £1 million contract to supply wheel
balance weights to Jaguar Land Rover.
John Hallé, Managing
Director at Trax JH Ltd, said:
We are pleased to have the
opportunity to talk to the Minister today. Over the last 20 years we have taken
advantage of the support from the various Welsh government agencies and in
particular from Finance Wales.
As a manufacturing company
exporting most of our production to the continent, we see energy costs and
exchange rates as key features in our battle to remain competitive. Support for
manufacturing energy costs is welcomed as are the increases in the annual
investment allowance.
Further
Information
Budget 2014 measures to support
business:
-
The annual investment allowance
is being doubled to £500,000, and will be extended by a further year to
December 2015. This means 99.8% of businesses could pay no tax on
investment.
-
Corporation tax has been cut by
1% to 21%. It has fallen from 28% in 2010 and will fall further to 20% in April
2015, making it the lowest corporation tax rate in the G20. Fuel duty is also
frozen.
-
A Business Energy Package will
save Welsh businesses, especially those with high energy requirements, up to
£240 million between 2016-17 and 2018-19.
-
Almost 200,000 SMEs in Wales
could benefit from a package designed to improve their access to finance. This
will see the government consulting on how to better match SMEs rejected for a
loan with alternative credit providers.
Businesses in Wales are also
able to benefit from:
-
A new employment allowance which
cuts the National Insurance businesses pay by £2,000.
-
A £1 million
sector-specific mentoring scheme will enable firms to benefit from support and
advice from experienced business people in their own fields.
-
A £10 million start up
fund launched by the Biotechnology and Biological Science Research Council
(BBSRC) to help entrepreneurial scientists in this field to get their business
off the ground.
-
The Business Bank Investment
Programme which will provide a boost to small businesses, giving them access to
much needed capital
-
Start Up Loans - crucial support
in the form of a repayable loan together with a business mentor for
entrepreneurs across the country.
-
Brand new broadband vouchers
– 22 cities across the UK – including Cardiff and Newport - will
benefit from £100 million of Broadband vouchers worth up to £3,000
each to help more small firms boost their business by accessing super-fast
broadband.
-
The Business is GREAT campaign
website www.greatbusiness.gov.ukbringing together, all the support from
across Government.
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