The Senedd election is now behind us, the UK has a new Prime Minister, and a fresh chapter in Welsh public policy is beginning. With new administrations taking shape and priorities being set, there is a renewed opportunity to focus on what matters most: delivering sustainable economic growth for Wales.
New Appointments Welcomed
Robert Lloyd-Griffiths, Wales director for the Institute of Chartered Accountants in England and Wales (ICAEW), welcomed the appointments of Andy Burnham as Prime Minister and Stephen Kinnock as Secretary of State for Wales. He emphasised that their success will matter enormously to businesses, communities and families across the nation.
"While politics will always involve differing viewpoints, economic prosperity is best achieved when governments, businesses and civic institutions work constructively together towards shared objectives," he said.
Falling Business Confidence
The latest ICAEW business confidence monitor, published last week, shows that business confidence in Wales has fallen sharply. Confidence declined in ten of the eleven UK nations and regions surveyed, with geopolitical instability, rising costs and continued uncertainty weighing heavily on business sentiment. In Wales, labour costs remain a significant concern for many employers, although encouragingly businesses expect domestic sales growth to strengthen over the coming year.
"Those findings tell an important story. Welsh businesses are realistic about the headwinds they face, but they have not lost their underlying optimism. They continue to invest, innovate and look for opportunities to grow," Griffiths added.
Role of Government
Griffiths stressed that economic growth cannot be delivered by any one institution acting alone. It requires a shared commitment to improving competitiveness, encouraging entrepreneurship, supporting skills and creating an environment where businesses can thrive. He urged the new UK Government to work constructively with Plaid Cymru in Wales wherever common ground can be found.
"Businesses are less concerned about which level of government receives the credit and more concerned that decisions are made, barriers are removed and investment opportunities are unlocked," he said.
New Development Agency for Wales
One particularly welcome development has been the positive discussion around a new development agency for Wales. If implemented effectively, such an organisation has the potential to become a powerful catalyst for investment, regeneration and business growth across the country. Working in partnership with the Development Bank of Wales, a new development agency could help create a clearer and more coordinated support ecosystem for businesses.
"Whether supporting Welsh firms looking to scale, attracting inward investment, or helping companies relocate and establish operations in Wales, the focus must be on ensuring businesses can access the advice, finance and networks they need to succeed," Griffiths said.
Productivity at the Centre
Griffiths also highlighted the importance of productivity. Raising productivity is fundamental to improving living standards, increasing wages and strengthening public services. Too often, debates about growth focus solely on headline investment figures. Long-term prosperity depends on helping businesses become more productive through innovation, digital adoption, skills development and better access to capital.
"Chartered accountants have an important role to play here. ICAEW members work directly with businesses to improve performance, support investment decisions and identify opportunities for growth," he noted.
Commitment to Collaboration
Griffiths confirmed that ICAEW is committed to bringing evidence, expertise and practical insight to conversations around Wales’ economic future. Their objective is not to advocate for a particular political perspective, but to ensure that the voices of their members and the businesses they support are heard.
"For Wales to succeed, government and business must work hand in hand. Westminster and Cardiff Bay must collaborate where possible. Investment agencies, financial institutions and the private sector must align around shared objectives. And policymakers must remain focused on the practical steps that improve productivity, encourage enterprise and create the conditions for sustainable growth," he concluded.
