Ahead of the crucial Senedd Election in May 2026, a leading business organisation has issued a stark warning: the next Welsh Government must raise its game to match the ambition of the nation's companies.
Manifesto Calls for Action on Top Business Concerns
The Institute of Directors (IoD) Wales has published its election manifesto, shaped by insights from its members. It identifies the most pressing challenges currently facing Welsh enterprises. Skills shortages remain the paramount concern for 39% of organisations, closely followed by policy uncertainty at 36% and the rising cost of labour and materials, cited by 29% of businesses.
The IoD warns that these persistent pressures threaten to constrain vital investment, productivity, and long-term economic growth if they are not decisively addressed by the incoming administration.
A Three-Point Plan for a Pro-Business Wales
To unlock Wales's full economic potential, the manifesto sets out a clear, practical roadmap for the next government. The key recommendations focus on creating an environment where business can thrive.
Firstly, it calls for a simplification of access to business support, making advice and funding more visible. This must be coupled with strategic investment in infrastructure that directly fuels economic development and improves connectivity across different regions and sectors.
Secondly, tackling the skills gap requires a lifelong approach. The IoD argues that skills development must be embedded at every stage, from education and vocational training through to lifelong learning and professional development for directors themselves.
Thirdly, the business community seeks greater long-term certainty. The manifesto advocates for aligning public investment with sectors where Wales has demonstrable strengths and adopting a more nuanced, place-based strategy for economic development.
Collaboration and Leadership as Bedrocks for Growth
The document strongly emphasises the importance of cross-border collaboration, particularly with England. IoD members report seeing huge benefits from such cooperation, and the organisation believes increased collaboration at all government levels could lead to better use of shared resources like data and research networks.
Furthermore, the IoD states that strengthened leadership, governance, and accountability are key pillars for building resilient businesses. High-level training is highlighted as vital for raising standards across the board.
"Investment in exceptional governance and leadership will provide the bedrock on which to build the future of Wales," the manifesto asserts. It calls for a blend of practical delivery skills and entrepreneurial vision.
Richard Selby, Chair of IoD Wales and co-founder of Caldicot-based Pro Steel Engineering, stated: "We are launching this manifesto at a pivotal moment for Wales. With major economic choices ahead, the next Welsh Government must focus on creating a genuinely pro-business environment that supports entrepreneurship, encourages innovation and attracts investment across all parts of Wales."
Marc Strathie, senior policy advisor for devolved nations at the IoD, added: "This manifesto reflects extensive engagement with our members and the real challenges facing Welsh businesses. It sets out practical, deliverable recommendations, and directors across Wales stand ready to play their part."
The overarching message is clear: the potential and ambition of Welsh businesses now demand a "confident and courageous" response from the next Welsh Government, with an unwavering focus on fostering a pro-business environment nationwide.
