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Back SMEs Or Pay The Price, FSB Wales Tells Senedd Hopefuls



Wales’s next government must put the country’s 200,000 small businesses at the heart of its strategy in order to protect jobs, communities and the Welsh economy, the Federation of Small Businesses (FSB) has warned.


It comes as the UK’s largest small business group launches its Senedd election manifesto ahead of the hotly-contested May elections, which will decide who runs Wales for the next five years.


The manifesto sets out how tackling rising costs, regulatory burdens, skills shortages and the decline of the high street could unlock Wales’s small business potential.


FSB Wales is now calling on all parties to make the 2026-2031 Senedd term the Small Business Term, as new research reveals that 65 per cent of Welsh business owners say passion, not profit, is their main motivation for running a business.


The manifesto is built around five pillars:

  1. Putting Small Businesses at the Heart of Government - Introducing a new Economic Development (Wales) Bill as well as a fresh economic strategy, and creating a dedicated agency to make sure SMEs are considered in every government decision.


  2. Reducing the Cost of Doing Business – Reforming business rates, mandating a 30-day payment term on public contracts, cutting red tape by 25 per cent, and better digital support for SMEs.


  3. Revitalising High Streets and Communities – Creating a business rates multiplier for retail, hospitality and leisure, more funding for town centres, taking action on anti-social behaviour and creating a Planning Act to revive high streets.


  1. Real World Productivity - Bigger infrastructure investment, better access to finance, creating a Minister for Digitalisation and establishing a new Net Zero Business Wales scheme to increase efficiency and sustainability.


  2. Successful People - Building a start-up strategy, increasing apprenticeship funding, creating a leadership development and creating an employment incentive to address skills mismatches and build resilient workforces.


John Hurst, Chair of FSB Wales, said:

“This is a manifesto for small business by small business. We must put small business at the very heart of the next Welsh Government, rejuvenate our high streets, enable businesses to thrive, reduce costs and support the wider workforce."

“From an innovative Economic Development Bill for small business growth to targeted rates relief and making sure businesses can get the skills they need, our proposals will empower SMEs to overcome barriers and thrive."

“As we approach the 2026 Senedd election, we urge all political parties to adopt these measures to unlock Wales's entrepreneurial potential for resilient communities and a prosperous future."

“Our members across Wales have created this manifesto and it is a direct reflection of their current situation and challenges and also highlights what is needed for them to continue to support the communities in which they operate, and the wider Welsh economy.”


About FSB

FSB is a non-profit, non-party-political grassroots business organisation that provides its members with a wide range of vital business services. These include advice, financial expertise, legal support and a powerful voice heard in Government for over 50 years.

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A 70-metre lifting crane, almost as tall as York Minster, appears on the city's skyline as Nestlé installs new £5.2m cranes at its Haxby Road distribution centre. The investment highlights Nestlé’s commitment to improving efficiency and modernising its facilities as the company celebrates the 40th anniversary of its York Distribution Centre site this year.


The investment will focus on replacing six high-bay stacker cranes and their control systems in the automated warehouse. This upgrade will not only enhance the warehouse’s reliability and longevity but also improve technology and overall efficiency, all while ensuring a safer work environment by reducing the need for employees to work at heights.


This ambitious project will be executed in three phases between January and July 2025, to maintain uninterrupted service in the company’s 32,500-pallet warehouse throughout the process.


The work will be carried out with Nestlé’s logistics partner, Alstef Group, and will involve the temporary assembly of telescopic cranes on site, with a total of seven lifting crane visits. The lifting crane will reach a height of 70 metres to replace six 25-metre cranes through the warehouse roof, all whilst keeping the operation running.


The company is also upgrading the electrical and control systems in the warehouse to ensure seamless operation. These improvements will make it easier for its team to monitor operations and respond quickly to any issues that may arise.


Richard Hastings, Head of Logistics at Nestlé UK and Ireland, said:

“Nestlé York is a cornerstone of our operations in the UK, playing a vital role in our supply chain and our commitment to delivering high-quality products to consumers."

“This investment in our York Distribution Centre reflects our dedication to continued improvement and innovation and we look forward to sharing more updates as we progress with this exciting project.”


Nestlé UK and Ireland has invested more than £800 million in its UK factories over the past decade, including recent upgrades in Wisbech, York, Halifax and Buxton.


Nestlé’s investment in the York Distribution Centre builds on more than £85 million investment in the Nestlé York campus in the past decade, including refurbished office space and factory machinery upgrades.


The York Distribution Centre was opened in 1985 and supplies retailers in the North of England with a wide range of Nestlé products, including confectionery, coffee and cereals.

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