Russell Greenslade, director of CBI Wales, argues that stable policy and targeted investment to improve the business environment are essential to keep Welsh firms competitive. As the race to lead Wales intensifies, the next government faces a pivotal moment with huge responsibility to advance the country's economy.
Key Economic Goals
One of the primary responsibilities is making Wales one of Europe's top performing sustainable small economies by 2035. This goal, set by the Welsh Government, requires harnessing Wales' geographical advantage to drive investment in renewables and clean energy projects.
Business Collaboration
The CBI's 'Made in Wales' manifesto outlines a clear path to prosperity, focusing on creating a more innovative and competitive economy. It calls for tackling the skills gap by supporting more young people into work, education, or employment. Coherent collaboration between Cardiff Bay and Westminster, in partnership with business, is essential for long-term sustainable growth.
Investment and Infrastructure
Capital investments are critical in a fast-changing global economy. However, firms often reduce capital-project spending during periods of low growth. Access to growth capital remains a barrier for many Welsh companies, especially SMEs. The Development Bank of Wales can play a major role by significantly increasing its lending capacity beyond the current £2bn capitalisation, enabling more SMEs to obtain patient growth capital for expansion.
Infrastructure Funding Gap
Wales faces a significant infrastructure funding gap, with only £120 per person spent on infrastructure compared to £247 in Scotland. Joint investment by government and business in modern, reliable infrastructure is needed to connect businesses to markets and talent. Reforms to the planning system are crucial to speed up improvements to the A55 and deliver the M4 relief road, which offers a £2 return for every £1 invested.
Digital and Rail Connectivity
Press ahead with rail electrification in North and South Wales, and digital infrastructure to ensure all areas, especially rural communities, have access to full-fibre broadband and 5G coverage.
Industrial Strategy
A Welsh industrial strategy is needed to tie together these efforts, providing a roadmap for boosting competitiveness. The strategy should offer practical solutions to expanding sources of patient capital, accelerating shovel-ready infrastructure projects, and ensuring regulation incentivises productivity improvements.
Collaboration for Success
Many steps require coordination between local authorities, regional corporate joint committees, the Welsh Government, and the UK Government. By working together, Wales can attract more investment and help good firms scale up locally. Whoever is elected must make collaboration with corporate joint committees and individual councils a key priority to ensure no region is left behind by the AI revolution.
