The Welsh Conservatives said it would cut the basic rate of income tax if a target of creating 65,000 new jobs is achieved over the next five years.
Its manifesto for the next month’s Senedd Election also commits a Tory government in Cardiff Bay to investing £2bn in infrastructure, including a M4 Relief Road south of Newport and upgrading the main road artery between North Wales into England the A55.
Leader of the Welsh Conservatives, Andrew RT Davies has set out what he describe as a "national mission" to get the Welsh economy on the road to recovery.
At the heart of the manifesto is the aim of supporting the creation of 65,000 new jobs across the economy over a five year term, in what would be a first ever Tory Welsh Government.
If the jobs target is achieved the Welsh Conservatives have committed to cutting the basic level of income tax at the back end of the next Senedd term. This would see a reduction of at least 1p in the pound to the basic rate of income tax with a commitment to supporting what it described as "hardworking families.” The basic rate of tax is currently 20p in the pound.
The Welsh Government has the ability to increase or decrease the three bands of incomes tax at 10%.
Cutting the basic rate of tax by 1p would see a loss of revenue to the Welsh Government of just under £200m. However, it said this would be offset by tax income from new jobs created.
Other key economic policies include:
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Abolishing business rates for small businesses and reform what it said is an outdated tax on growth.
Boosting opportunities for workers hardest hit by the pandemic with a Covid "Retrain, Gain" programme to get people into key sectors to kickstart the economy.
New support for micro businesses with a “Jump Start Scheme” paying the employer National Insurance contributions of two new employees for two years to accelerate growth.
Establishing Innovate Wales, based in North Wales, a one stop shop for firms to support new enterprises, and encourage existing businesses to grow and export
Investing £2bn to create modern infrastructure for Wales, including an M4 Relief Road, upgrades to the A55 and A40, and 20,000 green charging points
Delivering a “new deal” for North Wales.
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Commenting ahead of the launch of the manifesto in Wrexham, Mr Davies said: “Over the past 12 months, the coronavirus crisis has tested our communities and public services beyond recognition, but we’ve seen the very best of Wales when everyone has worked together in the national interest.
“As we move out of lockdown the next big challenge awaits, and we will need to undertake another critical national mission to get the economy on the road to recovery and create new jobs.
“We are currently experiencing the deepest downturn since records began, and evidence shows that Welsh communities could be amongst the worst hit. We urgently need a plan for recovery and for job
“Like Covid, our economic recovery is going to require a truly national effort, and if we are successful in delivering on our commitment of creating 65,000 new jobs it will be down to a true Team Wales approach - with businesses, entrepreneurs, government and the public sector working in unison.
“The Welsh Conservatives have an ambitious plan and will stop at nothing in our drive to create the first business-friendly economy in Wales for a generation and ensure we recover from the pandemic and 22 years of Labour rule.
“After two decades of failure in the halls of Cardiff Bay, Welsh Conservatives will place delivery at the heart of our manifesto and when we meet our commitments, we will ensure hardworking people in Wales benefit with a cut in income tax at the end of the next Senedd."