Need for reform to aid Shropshire and Mid Wales businesses

At present, small companies are looking for ways to invest and capitalise on economic growth which has finally returned the UK to its pre-recession position, while the sentiment around the country has led the British Chambers of Commerce to revise its growth forecasts upwards.

But there remain barriers to growth, and businesses had the chance to put their thoughts to the man in charge of supporting UK PLC at a breakfast meeting.

Vince Cable MP, the Business Secretary responsible for creating the right conditions for growth among Britain's businesses, spent yesterday morning at the Royal Oak Hotel in Welshpool, meeting local companies.

He also spoke to the Shropshire Star in an interview which covered the improved mood among businesses and the sticking points that are preventing local employers from expanding. He also said he believes the Liberal Democrats will recapture the Montgomeryshire seat covering Welshpool at the next general election.

The seat had been held by the Liberal Democrats since 1983, but was taken by Conservative MP Glyn Davies in 2010 – marking only the second time the party, and its predecessor the Liberal Party, had lost control of the constituency since 1880.

Now Jane Dodds is bidding to colour the patch yellow once more, and Dr Cable said he expects the party to come away from Montgomeryshire with a victory in the 2015 election – regardless of national polls which suggest the party's support has fallen to around seven per cent of the electorate, from 22.1 per cent at the last general election.

"I think our chances are really excellent, and I'm hoping and expecting Jane to be the next MP here," Dr Cable said.

"In Mid Wales I know Roger Williams (the MP for Brecon and Radnorshire) is very popular and respected. His poll ratings and popularity as an MP is as good as any MP in the country. You could have three Lib Dem MPs in Mid Wales next time.

"Jane's extremely hard-working, has a very good background in local government, she relates to people very well and is committed to the constituency. She's also bilingual – and that's a big help in Wales.

"We are not putting numbers on our performance next year. It will be a battle as we have been in government and attracted negatives for some of the things we have done.

"I'm much more optimistic than the polls, and I think what will happen is we may not hold all our seats, but we will gain others and we would expect to win Montgomeryshire."

Dr Cable was visiting the area following a tour of South Wales on Wednesday, which had seen him visit major companies such as Sony at Pencoed and Renishaw at Pontyclun.

His visit was a flying one – and he returned to London shortly after 9am – but not before encountering bosses from key local companies such as variable speed drives manufacturer Invertek, geology specialist Chemostrat, and builders' merchan Boys and Boden.

During the course of his breakfast meeting, Dr Cable heard a mixture of positives from ambitious companies hoping to grow, and problems as highlighted by frustrated local entrepreneurs who are hitting barriers in their attempts to expand.

"There's some really good companies doing very well – including some high tech businesses," he added.

"The first big problem that has been raised is firstly that Powys is excluded from European structural funding and there isn't a level playing field. That's why we're pushing the Welsh government to be more positive about this part of Wales.

"Then there's the ever-increasing rents on industrial estates which are causing a lot of grief for companies here.

"There are a lot of other issues raised, and the local MPs and candidates will push that as hard as possible.

"But I've heard from some really dynamic companies that want to expand, and I think I picked up a certain amount of frustration that they are finding it hard to get going because of the difficulty in getting finance from the banks.

"What we have to do is allow those companies to really expand, as there's a lot of potential for job creation if they are able to realise their potential."

He added: "There's a lot of frustration among companies here that they can't access schemes that my colleagues and I have introduced. We have a Growth Accelerator that you can access in Shrewsbury, but not here, and MAS for manufacturing, for which you have the same problem.

"We have generous enterprise zones in England, but they don't extend as far as the Welsh system.

"There's a lot of frustration around business rates. I have spoken up in government on the issue, and have challenged the FSB and BCC to come up with a system of reform."