Earlier this year BusinessLive reported that a multi-billion-pound investment vision to upgrade the rail network of South Wales and the South West of England had been revealed.
The Western Gateway Partnership - made up of city regions, local authorities, businesses and universities on both sides of the border - said significant investment is needed to ensure that both South Wales and the South West don't fall further behind other parts of the UK on rail investment.
Lloyds Bank is supporting the vision, as Amanda Dorel, regional director SME and mid corporate South West told BusinessLive .
Ms Dorel explained: “We are excited because when we talk to our clients about how it's going to enhance the capacity of rail transportation across both the South West and Wales, they say it will increase connectivity, which for me is really important. Clients are telling us it will enable them to attract different talent from the wider region in terms of working with them and supporting them in their businesses.
“It’s a really good opportunity I think. This feels like a real positive for business communities in the South West.”
Ms Dorel has a team of 60 colleagues based across the towns, villages and cities in the South West. They manage relationships for portfolios of clients who broadly turn over about £3m in the SME right up to £100m, in the mid corporate space.
Last month, Lloyds Bank’s business barometer reported that South West businesses identified their top target areas for growth in the next six months as investing in their teams (46%), evolving product service offerings (39%), and diversifying into new markets (33%).
All of which, according to Ms Dorel, could be achievable through a better transport network in the region. She labels the need to attract new talent and retaining talent as one of the bank’s “biggest priorities” for its clients.
If the Western Gateway Partnership’s proposal is given the green light and its projects completed it could allow for up to four trains per hour between Bristol and Cardiff, with journey times cut from 50 to 30 minutes. Journey times between Swansea and Bristol could be reduced from 90 minutes, once an hour, to 60 minutes, three trains an hour.
This vision according to the bank would allow greater movement for people across the South West and Wales.
Katherine Bennett, chair of the Western Gateway, said: “Our area has so much to offer. With 14 of the 15 largest aerospace manufacturers based here and home to the largest group of high-tech cyber businesses in Europe, we are ready to help deliver a greener, fairer future for the whole of the UK and beyond.
“This vision sends the signal that we are ready for the investment needed to unlock our potential. A better rail system with improved connectivity and new stations is key to creating the jobs and homes the area needs and our partnership is ready to work with the Government and the private sector to deliver this.”
Ms Dorel told BusinessLive : “Regardless of businesses whether they are professional services or manufacturing, time and time again, clients are saying to us ‘we need to retain talent and we constantly need to attract new talent.’ This is a great opportunity at the moment.”
The South West team at Lloyd’s Bank is currently committed to “grow with purpose,” and so are looking at opportunities to acquire new businesses, look after them and work with their existing clients in a way that makes them grow.
“So any improvement in the transport network, which enables us to grow with purpose, to support our existing customers as well as new customers is only a benefit,” said Ms Dorel.
Ms Dorel told BusinessLive that the biggest challenge to her clients in the South West, at the moment, is inflation. However, she said that businesses will be looking towards the second half of the year in hope for an easing of pressure.
She continued: “Businesses are telling us that they are pleased that inflation rates for March at 8.9 is down slightly from the rate of 9.2 in February but that they are very much looking forward to the second half of 2023 to hopefully see an easing of the inflation figure.”
Looking towards the second half of the year, will see tourists and a busy summer period in the South West. Lloyds Bank wants to ensure that their clients are best equipped to deal with this and so are offering a wide range of solutions from short term, more flexible financial solutions such as overdrafts and working capital support through to longer agreed loans.
'Any improvement in the transport network is only a benefit'
Lloyds Bank’s barometer indicates that because of the pandemic, a lot of businesses have seen their savings and primary funds reduced because they are trying to stay afloat. Ms Dorel explained that taking advantage of the bank holidays and summer season will see shorter, more flexible loans, like assets finances and invoice finances, which allow businesses to take advantage of more employment opportunities and make sure they have provisions in place for these periods of excess demand.
She said: “We look after some very established hospitality businesses, particularly down the South West peninsular and they are getting ready for a busy summer. Recruitment is really key especially in the hospitality sector to make sure that they are delivering high levels of service during that busy period.
“We are told from the business barometer that the biggest thing on our clients' minds at the moment is investment - 46% of them say ‘we want to invest in our team’.”
Lloyds Bank said that the biggest thing for them to do is to welcome the connectivity proposal. According to the bank it can provide more opportunities across the region and increase regional recovery from the pandemic.
Ms Dorel said: “Grow with purpose - if the investment gives us more opportunity to help with businesses that’s a real positive for me.”
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