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Development Bank ‘not a guaranteed solution’

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A NEW report by a think tank has assessed the potential of a public development bank for Wales to boost lending to firms and promote economic development locally.

The report by the Public Policy Institute for Wales describes evidence that ‘bank branch closures are having a negative impact on individuals and businesses in Wales, but more specific research is need to ascertain what impact bank branch closures is having on individuals and communities. Finding out the extent to which vulnerable areas are affected by bank branch closures can also help identify which specific services can be provided in the future.’

The report states: “However, even the most extensive public banking model, opening community banks would not be able to replace the branches that have been closed in Wales in recent years.”
On ways to protect banking services it comments: “A public development bank is potentially useful option, but not a guaranteed solution.”

Plaid Cymru Mid and West AM Simon Thomas said: “We need action from Governments in Westminster and Wales on bank branch closures.

“It is unacceptable that the bank network is being stripped from rural Wales. We cannot have a gap in the banking services available to rural and urban Wales.

“Plaid Cymru’s Westminster leader Liz Saville Roberts has called for a change in the law to protect the last bank in town. We are now seeing often in our communities from Llandysul to Llanidloes towns left without a bank.

“While bank branches are expensive to maintain and are used by fewer people in the past they are still an important resource. The report highlights research by the Federation of Small Businesses that bank branch closures affect small businesses in rural communities, as they are more likely to require cash purchases than in urban areas.

“High street banks have a duty to consult effectively with the local community over closures. While banks are private companies making commercial decisions, in effect access to banking is essential for modern life and participating in democracy.”

“The Labour Government in Cardiff Bay should be looking at how other financial institutions like Finance Wales and credit unions have a role to play. Other ways to protect banking services for small businesses and individual customers like developing the services provided by the Post Office will be hampered by the closure programme of successive Westminster governments of different political colours.”

The report identifies problems with lending to small and medium sized businesses, automation has made banks more geographically and operationally distant from small businesses.

Bank closures contribute to this problem according to the Federation of Small Businesses.

Mike Cherry, FSB National Chairman, said: “The rapid pace of bank branch closures across the UK presents some very real and tough challenges for small businesses. FSB members highly value the face-to-face interaction they receive in-branch, particularly when making complex financial transactions, with staff who often have a greater understanding of their business and the local economy. In addition, many of our members deal heavily in cash and cheques and need access to over-the-counter banking facilities on a regular basis.

“Small businesses are keen to embrace the opportunities of the digital economy. However, barriers towards digital inclusion, such as unreliable broadband connectivity, and a lack of confidence in using digital services creates serious challenges. These are some of the reasons which explain why the protection of in-branch banking is so important for financial inclusion.”

Large banks were three times more likely to shut a branch in Wales than in London and the south east of England, and five of the top ten areas affected by the 600 branch closures in Britain in 2015-2016 were in Wales – Powys, Denbighshire, Gwynedd, Conwy, and Carmarthenshire.

The FUW is particularly concerned as internet banking is not always an option in rural areas; many people will not have an appropriate internet connection- if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.

Speaking earlier this summer, FUW President Glyn Roberts said: “The closure of rural banks has a detrimental effect on rural areas, as they serve not only villages and small towns but many of the neighbourhoods in surrounding areas, as well as providing employment to local people.

“Closures are a great loss to residents and local businesses, particularly the elderly or residents who are unable to travel to the nearest town. The closures will of course also affect small businesses, as they will have to travel further afield for their banking needs.
“In addition, internet banking is not always an option in rural areas; many people will not have an appropriate internet connection if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.
“For many telephone banking is impractical, as they prefer to deal with their personal finances on a one-to-one basis and mobile banking is limited in many rural areas. It is worth considering as well that some people may not be able to get to mobile banks during the short time they are present in villages.
“With more and more rural services and businesses being closed down, we must also acknowledge that it is becoming less and less attractive for young families and indeed business owners to remain in the countryside.
“If the problem of rural depopulation is not addressed with some urgency it could have severe consequences for our rural communities and with that also our rural economy.
“It is clear that if we want to ensure that Wales develops its full potential in being a rural economic powerhouse, we must make it attractive for working families to stay and also encourage vital services like business banking to remain available in our countryside.
“The provision of acceptable broadband services is an increasingly critical part of meeting the needs of rural Wales.”

A report from the British Infrastructure Group found nearly a quarter of Welsh constituencies appear in the worst 20 constituencies in the whole of the UK for broadband speed.

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The Welsh Government launches Basic Income pilot scheme

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FROM 1 July 2022, more than 500 people leaving care in Wales will be offered £1600 each month (before tax) for two years to support them as they make the transition to adult life.

Launched by First Minister Mark Drakeford, it is hoped the pilot will set care leavers on a path to live healthy, happy and fulfilling lives.

The radical approach has trust, autonomy and respect at its centre. It will provide independence and security to people who have faced immense challenges during their childhood, giving them greater control and empowering them to make decisions about their future.

The £20 million pilot, which will run for three years, will be evaluated to carefully examine its effect on the lives of those involved

Social Justice Minister Jane Hutt said the scheme is a direct investment in the lives and futures of some of Wales’ most vulnerable young people.

Those taking part in the pilot will also receive individual advice and support to help them manage their finances and develop their financial and budgeting skills.

Local authorities will play a key role in supporting them throughout the pilot. Voices from Care Cymru will also work with the young people to give them advice on wellbeing, education, employment and help them plan their future after the pilot.

To launch the scheme, First Minister Mark Drakeford, Social Justice Minister Jane Hutt and Deputy Minister for Social Services Julie Morgan met with people taking part in the pilot, and young people who themselves have been in care, to talk about the impact this support will have on peoples’ lives.

They discussed how they hope the financial stability will give people the opportunity to make positive life choices as they leave care and provide a more solid foundation from which to build their adult lives.

First Minister Mark Drakeford said: “We want all our young people to have the best possible chance in life and fulfil their full potential. The state is the guardian of people leaving care and so has a real obligation to support them as they start their adult life.

“Our focus will be on opening up their world to all its possibilities and create an independence from services as their lives develop.

“Many of those involved in this pilot don’t have the support lots of people – myself included – have been lucky enough to enjoy as we started out on our path to adulthood.

“Our radical initiative will not only improve the lives of those taking part in the pilot, but will reap rewards for the rest of Welsh society. If we succeed in what we are attempting today this will be just the first step in what could be a journey that benefits generations to come.”

Minister for Social Justice Jane Hutt said: “We’re in the midst of a cost-of-living crisis like no other and we therefore need new ways of supporting people who are most in need.

“Our Basic Income pilot is an incredibly exciting project giving financial stability to a generation of young people. Too many people leaving care face huge barriers to achieving their hopes and ambitions; such as problems with getting a safe and stable home, to securing a job and building a fulfilling career. This scheme will help people live a life free of such barriers and limitations.

“We will carefully evaluate the lessons learnt from the pilot. Listening to everyone who takes part will be crucial in determining the success of this globally ambitious project. We will examine whether Basic Income is an efficient way to support society’s most vulnerable and not only benefit the individual, but wider society too.”

Tiff Evans of Voices from Care Cymru, speaking on behalf of young people who have experienced care, said: “This is a brilliant opportunity for care leavers in Wales. It is good to see that care leavers in Wales are being thought of and Welsh Government are providing this opportunity for them as young people to become responsible, control some parts of their lives and have a chance to thrive and be financially independent.

“We thank Welsh Government for investing in them and their future and we look forward to other changes and developments for care experienced young people in Wales in order for them to reach life aspirations.”

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Boris Johnson, his wife and chancellor Rishi Sunak to be fined for breaking lockdown rules

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THE PRIME MINISTER Boris Johnson and his wife Carrie, and chancellor Rishi Sunak, have been notified that they will be issued with fines for breaking lockdown rules.

The fixed penalty notices are the result of a Metropolitan Police investigation into parties in Downing Street and Whitehall in 2020 and 2021.

Mr Johnson will become the first sitting prime minister to receive a punishment for breaking the law.

Labour immediately called for both the PM and chancellor to resign while Liberal Democrat leader Sir Ed Davey called for parliament to be recalled for a vote of confidence in Mr Johnson.

Scotland’s first minister Nicola Sturgeon also demanded that they should quit.

Those calls have been echoed this week by Welsh Liberal Democrat Leader Jane Dodds has called on the Welsh Conservative Leader Andrew RT Davies and Welsh Secretary Simon Hart to “show a backbone” and call for Boris Johnson and Rishi Sunak to resign following the news that both men are to be fined over lockdown parties.

Commenting Jane Dodds MS told The Herald: “Boris Johnson & Rishi Sunak have broken the law & repeatedly lied, they must resign from their positions at once.

“While people in Wales were playing by the rules at great personal expense, those in charge thought they were above the law.

“This also will come as a painful blow to all those covid bereaved families in Wales.  The behavior of Johnson and Sunak

“The Welsh public deserves much better. For the sake of the country, both Boris Johnson and Rishi Sunak must resign immediately.

“If the Conservative Party is to have any legitimacy in Wales Andrew RT Davies and Simon Hart need to show some backbone and be calling for resignations immediately. No Welsh Conservative MP should be backing the Chancellor or Prime Minister staying in post.”

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Removing Plan B rules ‘a headline to distract from Boris failings’ says Drakeford

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FIRST MINISTER Mark Drakeford has said the decision to end “Plan B” restrictions in England next week is not part of a “careful, long-term plan” but it’s a “headline to distract people’s attention from the Prime Minister’s failings.”

Wales will complete the move to alert level zero on 28 January First Minister Mark Drakeford has confirmed unless the public health situation changes for the worse.

He said the phased plan to gradually relax the alert level two measures and move back to alert level zero will continue.

The Welsh Conservatives have called for the immediate removal of the vaccine passport scheme, restrictions on businesses such as the rule of six in pubs,  ditch all social distancing and the removal of mandatory face masks in schools.

Critics have questioned the Welsh Government policy to ease restrictions at a slower pace than England.

Boris Johnson announced earlier this week that England’s Plan B measures are to end from next Thursday, with mandatory face coverings in public places and Covid passports both dropped.

But that announcement came as the Prime Minister faced mounting pressure to resign amid allegations of parties held at Number 10 during lockdown.

Mark Drakeford said the move in England to ditch those restrictions was not part of a carefully thought-out plan, speaking to BBC Radio Wales he said:

“I don’t think anybody watching objectively at what has happened in England could imagine that their decisions have been made by careful attention to public health advice and with some sort of long-term plan in place.”

“Their announcements this week are entirely due to the astonishing mess that they find themselves in and an effort to find some other headline to distract people’s attention from the Prime Minister’s failings.”

Mr Drakeford said: “Here in Wales we’re in a very different position, we’ve got a government that is capable of making decisions in line with the advice, to do things in the way we’ve done throughout the pandemic, step by step following the science, making sure that we are keeping people in Wales safe.”

Speaking to Sky News this morning, Mark Drakeford said it was “very hard to see how the Prime Minister survives.”

“Even if he were to survive, he will just limp on because he’s never going to escape the damage that this week has done to his reputation.”

“From my point of view, the thing that worries me the most is the fact that the UK Government is frozen by the impact of what has happened to them.” He said.

WHAT’S HAPPENING IN WALES?

Welsh Government have said the latest public health data “suggests Wales has passed the peak of the omicron wave and coronavirus cases are falling back to levels similar to those seen earlier in the autumn” adding “There have also been reductions in the number of Covid-19 patients in hospital”.

From Friday 21st January, Wales will move to alert level zero for all outdoor activities.

This means:

  • Crowds will be able to return to outdoor sporting events.
  • There will be no limits on the number of people who can take part in outdoor activities and events.
  • Outdoor hospitality will be able to operate without the additional measures required introduced in December, such as the rule of six and 2m social distancing
  • The Covid Pass will continue to be required for entry to larger outdoor events attended by more than 4,000 people, if unseated, or 10,000 people when seated.
  • The Covid Pass is required in all cinemas, theatres and concert halls which are currently open.

First Minister Mark Drakeford said: “The latest figures show we have passed the omicron peak and we can continue to lift the alert level two protections as part of our careful and phased plan.

“We will lift the limits on the number of people who can gather for outdoor events. We remain cautiously confident the public health situation is heading in the right direction and next week we will be able to complete the move to alert level zero unless the situation changes for the worse.

“We are in this position thanks to the efforts of everyone in Wales and our fantastic vaccination programme. It is important that everyone continues to follow the rules and the guidance to help keep themselves and their loved ones safe, including taking up the offer of a booster vaccine if they haven’t already done so.”

On Friday 28th January, Wales will complete the move to alert level zero.

This means:

  • Nightclubs will re-open.
  • Businesses, employers, and other organisations must continue to undertake a specific coronavirus risk assessment and take reasonable measures to minimise the spread of coronavirus.
  • The general requirement of 2m social distancing in all premises open to the public and workplaces will be removed.
  • The rule of six will no longer apply to gatherings in regulated premises, such as hospitality, cinemas, and theatres.
  • Licensed premises will no longer need to only provide table service and collect contact details.
  • Working from home will remain part of advice from the Welsh Government but it will no longer be a legal requirement.
  • The Covid Pass will continue to be required to enter larger indoor events, nightclubs, cinemas, theatres, and concert halls.

The self-isolation rules for everyone who tests positive for Covid and the face-covering rules, which apply in most public indoor places will remain in force after 28th January. The next three-weekly review of the coronavirus regulations will be carried out by 10th February, when the Welsh Government will review all the measures at alert level zero.

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