SAVING OUR TOWN CENTRES

Plaid Cymru has long championed the importance of local economies when it comes to generating national wealth. Every £1 spent in a local business selling local produce is worth twice as much to the economy as £1 spent in a supermarket, due to local reinvestment and spending. As noted by the Campaign for the Preservation of Rural England, every £10 pound spent in a local business circulates at least three times before it leaves the local economy rather than vanishing when spent in the branches of chains. 

Jill Evans MEP, Plaids lead European candidate

Jill Evans MEP, The Party of Wales’ lead European candidate said:

"The importance of town centres is often underestimated. They have been allowed to wilt under successive governments in both Westminster and Cardiff and it’s time the Welsh Government produced a strategy to turn the situation around.

"Plaid Cymru has called for the business rates system to be completely reformed, levelling the playing field for small town centre businesses to compete with large out-of-town retail parks.

"In terms of business rates, Wales is the most expensive country in the UK for small businesses and the cheapest country for large multinationals.

"The system is clearly wrong and a Plaid Cymru government would make levelling the playing field a priority.

"We can’t turn the clock back, though, so we will need different models of town centres for a best-fit approach. This will involve a range of local strategies to create new stores and more pleasant places to shop so that we can increase the number of customers and people using those centres.

"We need the Welsh Government to produce a much more comprehensive plan to take on that challenge and lift town centres back to their rightful place as economically vibrant community hubs."

It is vital to ensure more people have the opportunity to economically support their local town centres across Wales, so we making them the vibrant heart of the community they once were. Over the last 30 years in Monmouth constituency (and elsewhere) we have all seen the damaging economic and social effects of bad short sighted questionable planning decisions on our small towns. The Welsh Government needs to actively support our town centres and create a more level playing field for small to medium sized local businesses. 

Our town centres should be the economic heart of our communities, generating local wealth and jobs for our people. The Federation of Small Businesses (FSB) have noted that the UK loses 2,000 local shops every year and that of this rate of loss continues then there will be significantly fewer independent retailers left in business. This is something that will seriously hit both consumers and our communities hard as they lose any real choice in the marketplace and lose potential job opportunities.

OUR TOWN CENTRES

Over the last twenty years the commercial hearts of many of our communities have been seriously damaged as a result of a combination of aggressive policies pursued by the larger retail chains and exceptionally poor decision making on the part of local government and central government indifference.

The Federation of Small Businesses (FSB) have noted that the UK loses 2,000 local shops every year and that of this rate of loss continues then by 2015, less than 4 years hence, there will be potentially few independent retailers left in business, something that will badly hit both consumers and our communities hard as they lose any real choice in the marketplace and lose potential job opportunities.

When this decline is combined with the rapid growth of unsustainable out of town and edge of town retail developments which leave next to no place for the smaller local businesses and retailers and deprive consumers of real choice - then it is clear that we have a real problem on our hands.

Factor in parking charges, business rates and the effect of the closure of high street banks and post offices in many of our communities and you begin to see why many of our smaller businesses and local shopping centres are up against it.

Local small businesses as well as trading with us, also trade with each other - so the community gets twice the benefit. Money spent by and in local businesses spends on average three times longer in the local economy than that spent with chain stores which is instantly lost to the local economy which in times of recession our communities can ill afford.

Plaid Cymru recognises the economic importance of our town centres, and will introduce a package of measures in government to support local shops and town centres. And Plaid will maintain the current business rate relief for the next five years which means that half of Wales’s small businesses will pay no rates at all during the term of the next Assembly government.

In its manifesto, Plaid has also promised to undertake a detailed retail strategy for Wales to support vibrant local economies and towns. The party will design a national plan to improve town centres for local people and visitors as well as undertaking a wholesale reform of the Welsh planning system to encourage the development of a low carbon economy and new business growth.

Retail is the largest private-sector employer in Wales and plays an important role in communities across Wales.

Plaid’s strategy would include looking at:

• Independent retail impact assessments for supermarket development
• Ensuring affordable retail units for local businesses being made available in new shopping developments
• Making provision for retail services for new significant housing developments
• Ensuring regular town centre reviews as part of Local Development Plans
• Creating online directories to promote Welsh produce within Welsh businesses

Plaid wants to create a Welsh Valuation Office Agency, and would ensure that rateable value assessments are undertaken fairly to provide a level playing field for small businesses rather than favouring the larger out of town developments as they do at present.

WELL THOUGHT OUT?

Now, some of us may have noticed that it's election time (again) and that all sorts of people are making all sorts of promises and pledges to gain electoral support (again). The Tories, who occasionally pass themselves of as being business friendly (although the combination of the current economic climate and the swinging Conservative driven cuts agenda might make many small businesses think twice about that particular claim), are suggesting that they will scrap business rates - yet their shadow budget shows that there would be significant reductions across the board, which would directly hit the economic budget, if they got their way.

The Conservatives in Wales have claimed they will provide rate-relief of 100% to all small businesses with a rateable value up to £12,000. However this promise is simply not affordable. The Tories pledge has absolutely no credibility especially when you consider that the Conservatives current plans to cut the local government budget, which deals with rate-relief, by 12.5%, far greater than that currently proposed.

I think that the Conservatives are seriously misleading the business community on their business rates pledge. In the past the Conservatives have stated they plan to give responsibility for rate relief to the Economic Development department. however at the same time they are campaigning for a massive 30% cut to that portfolio, almost a third more than what the Welsh Government believes is necessary. Plaid Cymru’s plans for business rates have been costed and are deliverable, something that certainly cannot be said for the Conservatives seemingly hastily calculated on the back of a fag packet.

Plaid Cymru is proposing to maintain the temporary business rate relief scheme until 2016, this will ensure that around half of small businesses will continue to pay no business rates at all. This will have a significant impact on businesses in Wales and will allow our economy to continue to recover from the disastrous mess that New Labour created and which the Con Dems are intent on making worse. Unlike the Conservatives at Plaid's plans are both ambitious and also deliverable.

SUPPORTING SMALL TO MEDIUM SIZED ENTERPRISES

Small businesses play a significant role at the heart of our communities; they create wealth and sustainable employment opportunities for local people. Profits and investments made by them tend to stay within the communities where they are based. For too many years economic development in Wales has been focused on large scale development of what can be best described a single egg solutions, which promise much and deliver significantly less, the focus should be on developing small to medium size local businesses, which are significantly less likely to up sticks and leave for perceived greener pastures and fresh applications of development grants.

This focus on attracting large scale single enterprises, which promise much but deliver significantly less than anticipated. The LG development near Newport, is a good example of an expensive disaster / fiasco [please take your pick] which promised the usual total of 6,000 jobs - accrued significant public funding - which was committed by the then Welsh Secretary, William Hague, yet never delivered anything like what was promised. While anyone (even a Tory) with half a brain or even half an understanding of the state of the Korean and the Far Eastern economies at the time that and a basic understanding of where technological developments in relation to PC monitor screens were going, would have put their hands up and said hang on a moment.

A combination of what can best be described as fantasy island economic assessments, a fatally flawed business case and a forthcoming Westminster election led to one of the spectacularly duller decisions of recent years being made, something that ended up costing us millions of pounds worth of public money. The old WDA has in truth not really consistently delivered anything like long term economic stability and much needed long term job opportunities to our communities that it should have done considering the amounts poured into it..

European funding opportunities have been seriously squandered, where are the physical assets, by which I mean the things you can literally put your hand on like improved communications (rail and road), broadband infrastructure, etc - that bring long term benefits to our communities. How much money has been scammed (and scammed may be the key word) into dubious training programmes and questionable educations programmes that fail to deliver the necessary skills that workers and potential workers need to make a decent living in the modern economy?

The Plaid driven One Wales Government has made significant efforts and attempts to think and act differently when it comes to economic development and support for small to medium sized enterprises, which are the only real thing that will put wealth into our communities, and develop and sustain longer term employment possibilities. Attracting branch factory operations of a relative short term duration does not help develop our economy - we really do need to think differently and focus economic development priorities on smaller local businesses who will be rooted in our communities and offer more flexible employment opportunities.

Over the last twenty years the commercial hearts of many of our communities have been seriously damaged as a result of a combination of aggressive policies pursued by the larger retail chains and exceptionally poor decision making on the part of local government and central government indifference. The Federation of Small Businesses (FSB) have noted that the UK loses 2,000 local shops every year and that of this rate of loss continues then by 2015, less than 4 years hence, there will be potentially few independent retailers left in business, something that will badly hit both consumers and our communities hard as they lose any real choice in the marketplace and lose potential job opportunities.

When this decline is combined with the rapid growth of unsustainable out of town and edge of town retail developments which leave next to no place for the smaller local businesses and retailers and deprive consumers of real choice - then it is clear that we have a real problem on our hands. Factor in parking charges, business rates and the effect of the closure of high street banks and post offices in many of our communities and you begin to see why many of our smaller businesses and local shopping centres are up against it.

Local small businesses as well as trading with us the consumers, also trade with each other - so the community gets twice the benefit. Money spent by and in local businesses spends on average three times longer in the local economy than that spent with chain stores which is instantly lost to the local economy which in times of recession our communities can ill afford.

The Welsh Government needs to have the power to vary business taxes in order to help boost our businesses, as well as encourage investment in skills and the tools of their businesses and their workers. If we are going to make Wales a nation of aspiring entrepreneurs and to encourage and enable them, our communities and our economy to flourish we need to encourage the development of community owned social enterprises.

The Rowlands review into the provision of growth capital was most welcome; it recognised that an economical vibrant SME sector is vital for economic growth. There has been a lack of provision for companies in Wales who are looking for between £2 and £10 million pounds in capital, this has to change if we are to encourage sustainable economic growth and development.

It’s pretty clear that the present financial market and its institutions have failed over recent years to supply sufficient venture capital for the SME sector in Wales. We need our own venture capital fund for Wales, which should be established by, but independent of the Welsh Government. Such an independent venture capital fund could raise capital and deliver investment through a co-investment model, with approved private sector partners to our SME sector, where such investment would make a real difference.

More of the same old twaddle from Whitehall and Cathays won't do at all, vastly expensive one egg, one basket schemes to generate the seemingly standard 6,000 jobs, just won't do. And speaking of twaddle, which was all that we were offered by the Wales based branches of the London based political parties, what we need is fresh thinking and action  - more than just talk, we need some concrete steps to encourage growth, boost manufacturing industry, support our small to medium sized enterprises and an end to the business rates and that's just to start with... otherwise it will just be a case of same old, same old with ill thought out out public sector cuts which will do nothing to boost our communities and our economy.

Shopping locally!

Now most reasonable people can clearly see with their own eyes open that the rich individual character of many of our towns is slowly evaporating before their eyes. Our High streets once filled with a rich mix of interdependent butchers, newsagents, tobacconists, pubs, bookshops, greengrocers and family owned general stores are now rapidly filling with supermarket stores, fast food chains and global fashion outlets.

This is the result on an abject failure by local and central government to develop local economic plans to create a level playing field for local businesses and suppliers; combined with some extremely questionable planning decisions over the last thirty years; has directly lead to many of our town centre's being "regenerated" to the point where many of our local small businesses are clinging on by their finger tips.

The loss of locally owned shops and businesses to the larger retail chains further damages the local economy as any profits drain out of the area to remote corporate headquarters and local employment opportunities destroyed. Money spent in local businesses stays in the local economy three times longer than when spent in shops belonging to the larger retail chains.

The Federation of Small Businesses (FSB) recently noted that the UK is losing 2,000 local shops every year and they estimate that if this rate of loss continues then by 2015 there will be no independent retailers left in business. Both consumers and our communities will be hit hard as they lose any real choice and economic diversity in the marketplace.

In the small towns across Monmouthshire (and much of Wales) that once particularly rich mix of local shops, small businesses and local suppliers has come under increasing pressure from the usual suspects as “identikit” chain stores have replicated themselves across our nation's high streets. The side effects of this increasingly well recognised process is a loss of a sense of community, a loss of local character as our high streets have lost their distinctive local shops which have been replaced by “micro-format” supermarket or chain store branches and a loss of local jobs.