With ASKAR SHEIBANI

CEO, Comtek Network Systems UK Ltd and chair, DBF

Most small to medium sized businesses are now facing colossal challenges caused by the pandemic, Brexit, Russian-Ukraine war, high energy costs, shortages of semiconductors, shortages and high cost of raw materials for manufacturing, high cost of living, rise in interest rate, tax rises, skills shortages and high levels of business pandemic related borrowings.

The rise in inflation, expected to reach 10%, will lead to even higher interest rates.

The UK and the Welsh governments intervened during the pandemic and saved a massive number of quality businesses and jobs. These billions of pounds of both governments' investment will go to waste if they decide not to intervene again now.

In North Wales we have first class businesses exporting all over the world. We already have key infrastructure upgrade plans such as renewable energy, and Gigabit Speed digital broadband that are about to be deployed in North Wales.

Our businesses are resilient and are prepared to tackle all the challenges. However, urgent support is absolutely necessary to help our businesses now. The UK government must urgently act and implement the following to support the SMEs:

• Reverse all the tax rises, at least for the next two years.

• Reduce VAT to 15%.

• Suspend coronavirus loan repayments (CIBLS) for two years for small businesses or loans of up to £1m.

• Simplify import and export documentation.

• Remove or simplify export licences for friendly and trusted countries.

The Welsh Government should roll out grants for viable growing businesses and give support to exporters. It should encourage the Development Bank of Wales in equity investment for such businesses, especially those exporting.

Investment by the businesses is grinding to a halt just as the economic outlook in the UK looks grim. It is now expected that the UK will end up in a recession by the end of the year.

However, the economic downturn could be avoided by a recession-busting, bold economic strategy. We already know that consumer confidence and spending is going down and is one of the major factors pushing us towards a recession.

To counter the reduction in domestic consumer spending we must energise and increase exports. North Wales, being the manufacturing powerhouse of the UK, is in a prime position to ramp up and expand its export market.

This will not only create more employment locally, but will also bring more wealth to our region.

I believe this is the time for the UK and Welsh Governments to grasp the urgency and be decisive. We must create a fertile environment and provide as many resources as possible to make it easier to invest and export.

The business community is ready to invest and halt the forecasted economic crisis, but are our governments ready too?