Bristol business leaders are warning that new devolved powers for the Welsh Assembly could hit the city’s economy just as it is enjoying a strong recovery from recession.
Business West, which runs Bristol Chamber of Commerce and the Bristol Initiative, fears the changes are being rushed through without the consequences being examined. 
The organisation this week staged an event in London with national and regional politicians to highlight their concerns over the issue and its impact on taxation and transport in particular.
It said with 90% of the Welsh population living within 50 miles of the English border and 138m journeys being taken between the two countries each year, it was imperative to understand how this new set of powers will impact the future prosperity of the West of England.
Business West managing director Phil Smith said: “Businesses in the South West are concerned that the potential devolution of new tax, borrowing and economic development powers to Wales on St David’s Day (March 1st) is happening too quickly, and without sufficient consideration or evidence of the likely impact of these changes to businesses in England. As a result we must tread carefully to ensure that this political shift benefits both of our nations.
“Allowing regions to play to their strengths through devolving substantial new powers is going to be a hallmark of the upcoming General Election in May and we have stressed our support for a new powerhouse in the South West with calls for greater collaboration between Cardiff, Bristol and Newport. That said, an appetite for devolution must consider the impacts on the local economy, still fragile having just come out of a crippling recession. This is a critical junction for both Wales and England and we must ensure it is remembered as a prosperous drive forward rather than a rushed turn.”
The Business West event in London was hosted by the North Somerset MP Dr Liam Fox.
Dr Fox said: “The principle of devolution is a sound one but its application is fraught with dangers. We need more economic activity generated outside London and the South East, but there is no point simply moving activity from one part of the country to another as a result of artificial distortions.
“The West of England, and the Bristol area in particular, is doing very well economically. We do not need anti-competitive measures Introduced under the guise of devolution. There is no advantage to UK plc for costly shifting resources around for no overall gain.”
Also taking part in the event were Bristol North MP Charlotte Leslie, West of England Local Enterprise Partnership (LEP) chair Colin Skellett, Bristol Airport chief executive Robert Sinclair, and Sue Turner, director of communications at Bristol Port.
Sue Turner said The Bristol Port Company had serious concerns regarding the devolution of additional powers to the Welsh Government and the impact this could have on businesses in the South West.
“The idea of devolving power to England and Wales is very seductive so Business West are performing a very important role in ensuring that politicians see the potential negative consequences too,” she said.
“The implications of any further devolvement must be fully assessed in order to avoid destabilising business in transport, energy and a range of other sectors. We currently have a very competitive level playing field – it isn’t always perfect but we are all treated the same.
“From Bristol Port we can see Newport and Cardiff and we compete with each other very effectively. If port development were to be devolved to Wales, a mass of red tape would have to be invented to recreate the current market-led approach. This Government should stand for encouraging competition not creating bureaucratic burdens.”
