PRESS RELEASE

Business Wales £6m running costs

 

Figures uncovered by the Welsh Conservatives show that Business Wales has annual running costs of over £6million at a time when many small businesses are in urgent need of financial support.

 

Welsh Conservatives have consistently called for business rates to be abolished for small businesses to help businesses stay afloat and expand to create new jobs.

 

Janet Finch-Saunders, Assembly Member for Aberconwy, who uncovered the figures, questioned whether the important service could be delivered more efficiently.

 

Janet Finch-Saunders said, “Recent figures show Wales has the lowest rate of business start-ups in the UK, so a source of business advice to encourage fresh business growth is an asset to the Welsh economy.

 

“Hard-pressed workers in small businesses will wonder whether every penny of the £6million running costs is essential to the organisation’s business activities and whether some of it would be better spent reducing business rates or cutting onerous red tape.

 

“Given that Business Wales shares the Welsh Government’s plush offices in Llandudno Junction, it is little surprise that its expensive overheads cost double the amount it spends on publicising business advice.”

 

 

Nick Ramsay AM, Shadow Minister for Business, said, “It is vital that would-be entrepreneurs and business owners can access authoritative advice to help them successfully set up and manage a business.

 

“There are questions about whether Business Wales should be so closely integrated into the Welsh Government, whether advice is sufficiently independent and whether the public sector mentality of the organisation could diminish the authority of its entrepreneurial advice.

 

“Welsh Conservatives would prefer a new network of regional business banks, which would be funded by the Welsh Government, but would operate at arm’s length and could provide more localised independent business advice.

 

“Labour Ministers should prioritise their business spending to create the conditions in which the private sector can prosper and deliver the maximum value for money with every Welsh pound.”

 

Ends /Diwedd

 

 

Notes to Editors / Nodiadau i Olygyddion:

 

The following answer was given to a question from Janet Finch-Saunders:

 

Janet Finch-Saunders (Aberconwy): What is the annual budget of Business Wales, providing a breakdown for (a) staffing, (b) publicity and marketing, (c) administrative costs and (d) other overhead costs? (WAQ66022)

 

Edwina Hart: The annual budget of the Business Wales (one stop shop) service is £6.28Million; the broken down costs are:

·         Staffing - £4,068,252

·         Publicity and marketing including provision of supporting information and advice  - £638,280

·         Administration - £200,404

·         Overheads - £1,373,064