Economic plans unveiled for area

Newtown and the Severn Valley is to receive a major business boost following a Government announcement today that the area, including Newtown, Welshpool and Llanidloes, will be prioritised for economic growth in Wales, along with other parts of Powys.

Among the plans, the Government is to introduce a programme to encourage community based economic development in and around Newtown to support new business start-ups.

A champion is to be appointed to work up and implement action plans for the development of business-led initiatives in Newtown, working closely with the Welsh Government and Powys County Council. Shop grants could also be introduced.

The community regeneration plans will be based on the Sirolli concept - a US model based on creating wealth through the community by nuruting the people within the community.

Welsh Business Minister, Edwina Hart, said the work would begin immediately and a Local Growth Zone would be set up to cover Newtown, Welshpool and Llanidloes. A business rate rebate scheme is also being consider, although this wouldn't be implemented for at least 12 months.

The announcement comes after the Government set up a Task and Finish Group, chaired by Justin Baird-Murray, to look at economic issues affecting Newtown, Llandrindod Wells and Brecon.

The plans also include placing a priority on the area to get Next Generation Broadband as part of a Wales-wide commitment to ensure 96 per cent of homes and businesses in Wales have access to high speed broadband by 2015.

WiFi covering all of the towns will also be introduced. The Government believes current fibre optics in the towns will allow for full coverage and help businesses and individuals access faster broadband through such technology. It also plans to improve mobile voice telephone coverage due to intermittent coverage in the rural parts of the Severn Valley.

The plan also supports the development of the Newtown bypass, as prioritised by the National Transport Plan, with work due to start in late 2014 or early 2015. Preparatory work is underway.

Business will also be able to apply for grants to create new business premises or update old ones. The government and Powys County Council will also provide greater support for micro and small businesses in the area through mentoring, succession planning, marketing, promotion and ICT upskilling.

There is also talk within the plan to ensure Powys is covered by EU funding designation in the next round of funding - 2014 to 2020 - because the county ha a low Gross Domestic Product (GDP).

The Minister said:” I am committed to taking forward the Llandrindod project immediately, testing its suitability for rolling out to Newtown, Brecon and other places as appropriate. The pilot project is vitally important, as it will give us a valuable insight into what we can achieve in our rural market towns. 

“Meanwhile, in Newtown, I am pleased to confirm that discussions are taking place between my officials and the Sirolli Institute to establish a model of community based economic development in and around the town. It builds on work currently underway in Blaenau Gwent."

The report identified the need for high speed broadband and the Minister said she would like to see the Powys Local Growth Zone given priority in the roll out, following Enterprise Zones. She said officials will factor this new priority into the detailed planning process and will be working with BT to provide fibre broadband to these areas as soon as possible. 

The Minister said she will be reviewing the effectiveness of business rate schemes in the Enterprise Zones after 12 months, and will then decide whether to introduce a similar targeted scheme in Powys Local Growth Zones.

Key points set out in the report for Newtown are:

1. That Welsh Government supports and funds the establishment of a business-led initiative, including a champion / facilitator, which seeks to more fully develop Newtown town centre’s role as a service centre

2. That the members of such an initiative, along with the champion, look in particular at Ernesto Sirolli’s Enterprise Facilitation model and its applicability to Newtown, taking into account the work being undertaken by Powys County Council as part of its town centre retail pilot

3. That the business-led initiative looks to ensure that stronger alliances are forged between businesses and Further Education providers, in order to establish Newtown as a centre for business-focussed learning and a centre of excellence

4. That Welsh Government ensures that the proposed Newtown bypass is delivered on schedule, with work to start as planned in 2014

5. That the regeneration of the Market Hall is an important catalyst for Newtown, and opportunities to exploit this need to be examined by Powys County Council and Welsh Government, including funding options

6. That Powys County Council examines the suitability of a Townscape Heritage Initiative programme and a shop front grant scheme for Newtown 

Download the Government report here.

Caption: Edwina Hart AM, MInister for Business