'Promise Brexit cash is replaced' say Welsh firms or risk economic slowdown

Fears that firms in North Wales could lose out on millions of pounds of business support after Brexit have been voiced.

The Federation of Small Businesses (FSB) which represents hundreds of SMEs in the region says European funding dedicated to supporting small firms in Wales must be replaced by the incoming UK Government after the General Election to avoid the risk of an economic slowdown post-Brexit.

EU cash currently supports services like Business Wales and grant funds like the Tourism Investment Support Scheme (TISS).

FSB research found that the majority of businesses in Wales that have used EU funded schemes believe EU funding has had a positive impact on their business.

For job opportunities in the region see www.fish4.co.uk/jobs/north-wales .

Michael Learmond, senior development manager – Wales, said: “EU funding has been used to support small businesses in several ways in North Wales. 77% of the businesses in Wales that responded to our survey have accessed support from Business Wales in the last two years.

“We have benefitted from support for micro-businesses in Wales, training in leadership and management for those wishing to expand their business, and enterprise zones.

“One thing our research has demonstrated is that businesses don’t always see the value of the way money is spent in relation to their business.

“We need a new conversation with businesses to reinforce the benefit of this funding and bring them closer to what is an important public investment. Brexit offers the opportunity to improve upon how and where we use this money.”

In recent funding rounds, the devolved governments of the UK have received some of the highest allocations of ESIF (European Structural and Investment Funds). Wales receives five times more in per capita terms than England does.

The FSB said as a net contributor to existing EU budgets, the UK should eventually receive a budgetary dividend after Brexit and that the UK Government should, at the very least, aspire to maintain the level of funding currently on offer to support small businesses.