Welsh business confidence up but still in negative zone
ICAEW's Business Confidence Monitor (BCM) for Wales, published on July 24, put confidence at -3.7 on the index for Q2 2025, an improvement from -17.6 in the previous quarter.
However, this reading was still below the historic average for the country.
ICAEW pointed out that confidence remains fragile due to weak domestic and export sales growth.
Manufacturing, engineering, retail, and wholesale in Wales reported some of the UK's lowest confidence levels.
The institute added that uncertainty around the outcome of next year's Senedd elections could be a contributing factor, although the UK-US trade deal has likely provided a boost, particularly for exporters.
Both domestic sales and exports grew at a lower rate in Q2 than their respective historic averages, according to the BCM.
Welsh businesses forecast improvement in both domestic sales and exports growth within the year ahead.
The tax burden remained the most prominent challenge for Welsh businesses following April's rise in employer's National Insurance Contributions, with more than half of the nation's companies citing it as a growing source of difficulty.
Customer demand and marketplace competition were also cited as challenges.
Minimal employment growth in the year to Q2 2025 reflects the increases in National Insurance and the National Living Wage in April, as well as the performance of key sectors.
Robert Lloyd Griffiths OBE, ICAEW director for Wales, said: "It's heartening to see that sentiment has increased and is now broadly on par with the UK average.
"Nevertheless, our companies are underperforming across most of the key metrics, suggesting we are not out of the woods yet."
Nationally, business confidence declined quarter on quarter to -4.2 in Q2 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
14 minutes ago
- Telegraph
‘Ludicrous' to blame gig economy for mass migration, insists Lord Cameron
Lord Cameron has hit out at 'ludicrous' claims that he contributed to the small boats crisis by embracing a wave of loosely-regulated gig economy apps. The former prime minister denied that his backing for the expansion of firms such as Uber and Deliveroo helped create a thriving black market for jobs. His comments come amid revelations that asylum seekers are making money illegally as couriers and food delivery drivers in the so-called gig economy of lightly regulated part-time work. Yvette Cooper, the Home Secretary, has vowed to crack down on the practice, warning it 'undermines honest business and undercuts local wages'. Lord Cameron's government pledged to become a global centre for tech companies involved in the gig economy 11 years ago, courting some of the biggest players. Lee Anderson, the Reform UK MP, suggested the Coalition's stance had allowed illegal migrants 'to roam the streets on e-bikes and make a living'. A spokesman for the former prime minister denied the claims, insisting Lord Cameron was 'proud' of having brought investment into the UK. He said: 'Lord Cameron remains incredibly proud of everything he and the governments he led did to ensure the UK established itself as a truly successful global tech hub – attracting global businesses, creating jobs, and boosting economic growth. 'To link this success story to the legitimate issues of illegal immigration is ludicrous. 'Indeed, it's a legacy we should be proud of and successive governments should build on, as we seek to ensure the UK remains an attractive place to do business; attract talent and innovation; and secure our place as a global centre for tech and entrepreneurialism.' The Coalition government, which was led by Lord Cameron, commissioned a review into what was then called the 'sharing economy' in 2015. It had the aim of making Britain the 'global centre' of the new wave of services such as Uber and Deliveroo, and lifting regulations on the sector. But the delivery apps have become controversial, with accusations they are attracting illegal migrant labour. Their delivery drivers are classed as self-employed workers, rather than employees, which has meant they have been subject to fewer checks. There have also been issues around the use of 'substitute' drivers – where people who are legitimately in the UK own a delivery account with one of the companies but then subcontract it out to illegal workers for a fee. The Home Office has announced plans to tighten up the system, forcing delivery firms to carry out more illegal working checks on riders working for them. On Friday, ministers announced that hundreds of delivery drivers had been arrested in a single week last month as part of a new crackdown on illegal migrants. A total of 1,780 people were intercepted at locations across Britain for suspected illegal working activity between July 20 and 27. The Home Office said 280 people were detained in areas including Hillingdon in north-west London, Dumfries in Scotland, and Birmingham. Of these, 53 are now having their asylum support reviewed, which could lead to it being withdrawn, the Government said. The findings follow a Telegraph investigation that revealed asylum seekers housed in Home Office hotels were paying off debts to people smugglers by illegally working as bike couriers. The Telegraph found that migrants were making up to £500 a week by working for delivery services such as Deliveroo, Just Eat and Uber Eats, even though many of them were banned from working because of their immigration status. Illegal work carried out by asylum seekers has become a political flashpoint amid growing public anger over the failure to stop small boat crossings. The Tories and Reform have criticised Labour for having a soft touch approach, with the number of illegal arrivals on course to break records. More than 25,000 people had crossed the Channel by the end of June, the earliest in the year at which that figure has been reached. Lee Anderson, the Reform chief whip, said: 'Labour and the Tories have completely lost control of the asylum system and taxpaying Britons are footing the bill. 'Not only are these unidentified fighting-age males being welcomed and housed in luxurious hotels, they are also able to roam the streets on e-bikes and make a living. 'The fact that this is being allowed to happen without a serious crackdown is appalling'.
Telegraph
14 minutes ago
- Telegraph
Elon Musk seeks to sell power to UK households within months
Elon Musk's Tesla is preparing an assault on Britain's energy market in the coming months, with plans to launch a household electricity supplier. The company has applied to Ofgem for a licence that would allow it to take on the likes of Octopus and British Gas by selling power to households. It suggests Tesla could start providing electricity as soon as next year, in a major expansion of its energy ambitions in Britain. Tesla Electric, as the supplier will be called, is likely to integrate closely with Mr Musk's electric cars and Powerwall home batteries with a promise to save on household bills. The company already runs an electricity supplier in Texas that allows Tesla owners to charge their cars cheaply and pays them for selling excess solar power or electricity stored in its home batteries back to the grid. Tesla Energy Ventures, the company's energy subsidiary, applied to Ofgem for an electricity supply licence on July 25. The application was signed by Andrew Payne, a Tesla veteran who runs the company's energy operations in Europe. The Telegraph revealed in 2023 that Tesla was gearing up to launch a household energy supplier. The company has been steadily hiring for operations and policy staff as it prepares to enter the market. Tesla already has some of the elements that would give it a leg up when taking on energy incumbents. It has sold tens of thousands of 'Powerwalls' – home storage batteries that can be charged by solar power or at off-peak times – to British homes. It also sells home chargers for electric cars, and has millions of cars on the road, a major potential customer base to tap into. Tesla has sold more than 250,000 cars in the UK. This could also put it in a prime position to take advantage of 'vehicle to home' technology in which the car's battery powers the house. Energy companies have been conducting trials of the technology. The company is also a significant part of the wholesale energy market, with mega battery installations and its Autobidder software used to buy and sell electricity stored in batteries. It has had a generation licence from Ofgem since 2020. While the company does have some advantages, Tesla sales have slumped in the UK in recent months amid growing competition in electric cars and controversies over Mr Musk's comments, including support for Donald Trump and far-right figure Tommy Robinson. Industry figures show UK sales slumped by 60pc in July. Tesla launched an electricity supplier in Texas three years ago. It charges a flat fee for unlimited charging of Tesla cars at certain hours of the day. Customers with Powerwall batteries connect them to the grid and are paid when the company uses electricity from them to power other homes, in what it calls a 'virtual power plant'. While it is unclear what its UK proposition would be, job adverts have suggested the company will apply the same virtual power plant idea, in which a network of home batteries balances out inconsistent energy sources such as wind and solar, storing energy when it is abundant and putting it back into the grid at times of peak demand. Tesla launched an energy plan with Octopus Energy in 2020 but ended the partnership three years later as it stepped up its own plans. The company has since worked with Octopus to allow Powerwall owners to use the energy provider's software to sell electricity at peak times. Receiving an electricity supply licence from Ofgem can take as long as nine months although in some cases licences can be granted within weeks. Stricter requirements were introduced after the energy crisis of 2021 in which a series of providers went bankrupt. Tesla has not applied for a gas supply licence, meaning households that use electricity and gas – the vast majority in the UK – would have to choose a different gas supplier.
The Guardian
43 minutes ago
- The Guardian
Trump Media to broadcast GB News on US streaming platform Truth+
The Trump family media company has partnered with GB News to broadcast the channel on its US streaming platform, Truth+. Trump Media and Technology Group (TMTG), which operates social media app Truth Social, the streaming platform Truth+, and the FinTech brand announced on Friday that it will add GB News to its list of available channels – making the UK broadcaster accessible to most countries globally, including the US. GB News, which has hosted rightwing commentators such as Nigel Farage, will be offered with the free basic package on Truth+, and can be accessed through multiple devices and platforms including iOS, Android, Web, Apple TV, Android TV, and Amazon Fire. This new alliance between TMTG and GB News comes as the US president continues to criticise the mainstream media, filing lawsuits against giants such as Rupert Murdoch, as well as broadcasters and smaller newspapers. Earlier this year, Trump claimed that the US media was full of 'radical-left monsters', who are guilty of 'illegal' reporting. More recently, White House communications director, Steven Cheung, has said that 'liberal media' is spreading 'fake news' in relation to reports claiming that Trump's name appears in US justice department files about Jeffrey Epstein. Trump Media's chief executive and chairperson, Devin Nunes, said in a statement: 'GB News is a terrific source for news, facts, and commentary. 'By expanding its global reach, we aim to connect an enormous new, international audience to the network's unique reporting and opinion, while putting another dent in the global woke news monopoly.' Sign up to First Thing Our US morning briefing breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Angelos Frangopoulos, GB News chief executive, said: 'As the fearless champion of freedom of speech in Britain, it is important that we launch across the United States of America and globally on the Truth+ streaming platform.'
