Llinos Medi

Diolch, Cadeirydd—it is a pleasure to serve under your chairmanship. SMEs employ nearly 750,000 people in Wales, with a combined annual turnover of over £50 billion. There are more rural businesses in Wales, at 46.2%, than in the UK as a whole, at 31.9%. Supporting rural businesses is therefore especially important for the Welsh economy. The spending review announced an increase in R&D funding to benefit businesses. However, Wales makes up 5% of the UK population and yet received just 2% of the R&D spend. We need a fair R&D funding policy to ensure that Wales’s proportion reflects its population share. The Federation of Small Businesses in Wales is calling on the UK Government to set a target that half of all direct Government business enterprise expenditure on R&D funding should be directed to SMEs. The spending review also announced billions of pounds for improving transport connectivity in English regions, such as Manchester. However, there was nothing for rural Wales. Poor transport links in rural areas are a drain on businesses’ time, and it limits their ability to grow. Ynys Môn also has some of the worst digital connectivity in the UK, with 35% of the constituency receiving gigabit broadband, compared with 78% of the UK on average. Business needs both physical and digital infrastructure to flourish. There are changes that the Government could make now to support specific industries. An example is food and drink. I declare that I am the chair of the all-party parliamentary group on hospitality, events, major food and drink businesses in Wales. In Scotland, the Scottish Government have introduced a guest beer agreement as part of the Scottish pubs code. This could benefit Bragdy Mona and Bragdy Cybi breweries in my constituency. The pub code is currently under review, so I ask the Minister whether the Government will look at the merits of including a guest beer agreement in the pubs code, as has been done in Scotland. The Government must use their industrial strategy to prioritise rural businesses, which are the backbone of our rural communities.