What does Brexit mean for Merthyr?

Bevan Foundation Director, Dr Victoria Winckler has called for a fresh approach to economic development in Wales following the Brexit vote.

Speaking to Merthyr Tydfil Business Club on 19th July about how the vote to leave the EU could affect businesses in Merthyr and elsewhere in Wales, Victoria provided an overview of the key areas that might be affected for example by changes in EU exports and imports, or by shifts in foreign direct investment (FDI).

Victoria said: ‘Although on the face of it Merthyr doesn’t seem especially exposed to leaving the EU, almost everyone will rely on EU imports or exports somewhere in their supply chain. And while FDI may stay in the area in the short-term, further ahead we may see a shift of investment away from Merthyr, Wales and the UK.’

While so much remains uncertain, Victoria urged businesses to follow the advice of the Federation of Small Businesses – don’t panic, reassure your customers, diversify your clients, protect against currency risk and review your hiring policies.

She also urged the Welsh Government and other public bodies to undertake a major review of the ‘fitness for purpose’ of current economic policies. “Everything depends on the deal reached by the UK Government and the legislation and policies that it and the Welsh Government adopt in the future.  It’s time for a fresh approach which relies less on EU firms and EU exports” she said.