Welsh firms have broadly welcomed Chancellor Jeremy Hunt’s Autumn Statement, which includes tax breaks for companies and a second investment zone for Wales. Mr Hunt said the new investment zone would be based around Wrexham and Flintshire.

The Welsh Government has been pressing for two zones in Wales, one in the south-east and one in the north-east of the country. Cardiff Capital Region (CCR) will host the other investment zone via a joint UK and Welsh Government funding package worth £160m over a period of five to ten years.

Councillor Anthony Hunt, chair of CCR's regional cabinet, said: “This is great news for the Region and for the Welsh economy in general. To have two of these new Investment Zones situated in Wales demonstrates how deep and broad our capabilities are. We can take this announcement as a vote of confidence in the ambition and talent across the ten Local Authorities that make up the Cardiff Capital Region. We look forward to working with the UK and Welsh Governments on this.”

The Chancellor extended tax breaks to 10 years for investment zones, as part of the UK Government’s levelling-up agenda, and announced £500,000 of levelling-up funding for the literary Hay Festival in mid-Wales. It was part of a business-heavy budget, where Mr Hunt promised a permanent £10bn-a-year tax break for companies that invest in new machinery and equipment, describing it as the “largest business tax cut in modern history”.

The Chancellor also pledged planning and grid reforms to tackle energy grid connection problems, reduce late invoice payments, and create a new “new simplified R&D tax relief”.

FSB Wales policy chair Ben Francis said: “We welcome the fact that the Chancellor has listened to the calls made by FSB to take action on the scourge of late payments, extend support for businesses in our high streets, and provide much-needed help for the self-employed.

“The extension of business rate support for hard-pressed retail, hospitality and leisure businesses in England generates consequential funding for Wales. In the coming Welsh Government Draft Budget, small businesses in Wales will expect to see that support replicated with the extension of Welsh Government’s own support scheme, a call FSB has recently made to the Minister for Finance, Rebecca Evans.”

However, Welsh Retail Consortium director Sara Jones said the Chancellor had “botched the chance to freeze the business rate for the majority of businesses”.

“This short-sighted decision means the medium-sized and larger retailers across the UK who underpin the vitality of our town and city centres and employ the vast majority of retail workers are now staring down the barrel of a hefty £540 million hike in their business rates bills from next Spring,” she said.

She added: “A hike of this magnitude will put upward pressure on shop prices and undermine efforts to rejuvenate high streets and retail destinations. This misstep is the antithesis of the Prime Minister’s anti-inflation strategy and recently unveiled long term plan for towns.

“Hopefully, the Welsh Government’s Finance Minister will take a more enlightened approach and go further and freeze the business rate or at least blunt any uplift in next month’s Welsh Budget.”

Lloyd Powell, head of ACCA Cymru/Wales, said: “With confidence amongst SMEs low, the Chancellor needed to announce a series of measures to boost investment. Today’s statement includes a number of positive steps, including simplifying and reducing tax for self-employed individuals, as well as action on late payment and an extension of business investment incentives.

“ACCA Wales welcomes the announcement of the second investment zone in Wales in Wrexham and Flintshire. Several of the announcements, for instance on apprenticeship funding and business rates relief, do not impact directly on Wales as they are devolved matters.

“There will be additional funding for the Welsh Government via ‘Barnett consequentials’ as a result of some of the announcements. We await the draft Welsh Government Budget to be published in December.”

James Howells, managing director of The Monex Group in Newport, said he was disappointed over the lack of announcements on fuel duty in the budget for his fleet of over 150 vehicles.

He said: “While the increase to the minimum wage to £11.44 per hour, which comes into force in April, will be a huge blow to many British businesses, the full expensing business tax break being made permanent will definitely be a positive to those larger companies with money in the bank to spend on assets. The announcement for employees regarding the 2% decrease in national insurance payments will however be very much welcomed by our 270 strong team.”

Director and co-founder of Pontypool-based Pro Steel Engineering Richard Selby said he was delighted that £50m had been allocated over the next two years to increase the number of apprenticeships in sectors like engineering.

“We need to ensure this benefit is felt here in Wales given the skills shortage we continue to suffer from,” said Mr Selby.

He added: “The 9.8% minimum wage increase will be invaluable to all during this cost of living crisis, and this has tried to have been balanced to business owners with the introduction of the full expensing business tax break made permanent which will be welcomed by many. SMEs however will be wondering how to overcome this cost rise in their forthcoming budgets for 2024.”