Welsh Liberal Democrats Demand Dedicated Industrial Strategy for Wales
The Welsh Liberal Democrats have issued a strong call for the next Welsh Government to establish its own dedicated industrial strategy as a crucial component of a long-term plan to bolster the economy's manufacturing foundation. This announcement comes ahead of the party's Senedd Election manifesto release later this month, emphasizing the need for targeted support tailored to Welsh industries.
Aligning with UK Strategy While Addressing Local Needs
The proposed Welsh industrial strategy is designed to work in tandem with the UK-wide strategy, ensuring that Welsh industries receive the specific support they require without unnecessary duplication. Last year, the Westminster government unveiled its ten-year industrial strategy, built around eight key pillars spanning from manufacturing to fintech. Notably, last week, CBI Wales also advocated for a distinct Welsh industrial strategy in its Senedd manifesto, though with alignment to the UK framework.
This proposal was highlighted during a visit by David Chadwick MP, the PM for Brecon, Radnor and Cwm Tawe, to the 7 Steel facility in Cardiff. There, he engaged with workers and industry representatives to discuss the pressing challenges facing Welsh heavy industry and manufacturing.
The Critical Role of Industry in Wales
The party underscores that Wales needs a clear and coordinated strategy to support its industrial sectors, recognizing their outsized contribution to the economy. Heavy industry and manufacturing account for approximately 15% of the Welsh economy, a significantly higher share compared to around 9% across the rest of the UK. This disparity highlights the sector's importance and the urgency for strategic intervention.
Wales retains a robust industrial base with potential to lead in advanced manufacturing, engineering, and green energy supply chains. However, realizing this potential demands deliberate and sustained governmental action. Businesses in Wales consistently report concerns over high energy costs, inadequate transport infrastructure, and escalating skills shortages, which are impeding investment and growth.
Focus on Apprenticeships and Technical Training
Any serious industrial strategy must prioritize strengthening apprenticeships and technical training to ensure Welsh businesses have access to a skilled workforce. The Welsh Liberal Democrats have previously called for the Welsh Government to reverse recent cuts to the apprenticeship budget, expand higher and degree apprenticeships in sectors like engineering, manufacturing, and construction, and establish regional engineering and technical skills hubs aligned with local employer demand.
Political Commentary and Broader Demands
David Chadwick MP remarked, "Wales has a proud industrial heritage and the skills, expertise and workforce to build a strong manufacturing future. But after decades of deindustrialisation and years of economic drift from the Welsh Labour Government, far too many communities feel their industries have simply been left behind." He added, "Manufacturing and heavy industry still make up a far larger share of the Welsh economy than they do elsewhere in the UK. That is a strength we should be building on, not something we allow to decline through neglect."
The party criticizes Welsh Labour for never attempting to set out a clear strategy to close the wage gap between Wales and England or improve productivity over its 27 years in power. The Welsh Liberal Democrats believe economic growth should be central to tackling poverty and creating opportunity, with a serious industrial strategy being a vital step toward that goal.
In addition to the industrial strategy, the party is advocating for the devolution of rail to Wales, accompanied by a fair block grant adjustment to address years of underinvestment in Wales' rail infrastructure. This move would decouple Wales from rail projects in England, such as High Speed Two, which are currently classified as Wales and England schemes. It would also adjust the comparability factor, increasing Wales' rate from the current 33% to nearly 96%, in line with Scotland and Northern Ireland, reflecting a more equitable distribution of resources.
