Next May Wales will go to the polls to decide who governs the nation for the next five years. For the Welsh Government, that means six months to prove that it actually has an economic plan to rebuild confidence, attract investment and deliver growth.
For too long, economic strategy in Wales has been light on delivery and the private sector has grown tired of a system that seems designed to manage decline rather than inspire renewal. This is despite having world-class companies, innovative entrepreneurs and talented workers to revive our economic fortunes.
More relevantly, given that the Ƶ Government has just given the Welsh government £547m over the next three years to grow the economy, how should that funding be invested?
First of all, confidence needs to be rebuilt through a clear national growth and investment plan, with businesses and investors knowing exactly where Wales is going. Instead of a patchwork of disconnected programmes, we need a single roadmap setting out measurable targets for new businesses, jobs, exports and private investment and a vision has been missing for way too long.
It should focus on sectors where Wales already has a competitive edge - advanced manufacturing, green energy, creative industries, fintech, food and drink, life sciences, and tourism - and be backed by a £250m co-investment fund to scale up firms that are ready to grow.
Alongside this, a public “investment atlas” should highlight every major opportunity in the country, from tidal power to tech clusters, so that investors see Wales as a coherent proposition rather than a collection of small unconnected projects.
And we need to be far more confident about selling Wales to the world, promoting our creativity, innovation and sustainability through a modern international campaign that positions the country as forward-looking and ambitious.
To achieve this, entrepreneurship must become a national mission rather than an afterthought as Wales still trails the Ƶ average in new business creation and yet nothing will transform any economy faster than a surge in start-ups and scale-ups.
That requires joined-up support including a single digital front door bringing together grants, mentoring and access to investors, backed by local hubs - such as my company’s investment in the old county council offices in Conwy - where entrepreneurs can find space, advice and community. And we need to start much earlier, embedding enterprise education into every school, college and university so that creating a business is seen as a normal career path, not a risky alternative.
If we want to raise productivity, the skills system must be aligned with the real economy given that employers consistently report shortages in digital, technical and management skills while tens of thousands of young people train for jobs that don’t exist. A new skills compact between government, colleges, universities and business could change that, funding provision that matches employer demand and providing training vouchers for SMEs to upskill their staff in key growth areas such as AI and green technology.
Universities also need to be part of that economic renewal and for too long, higher education has largely ignored its mission to support local economies. That must change and every institution should have a clear plan for how it supports local growth and be supported properly to generate new ideas, new companies, and new opportunities for the communities around them.
The Welsh Government must also ensure that Wales is at the forefront of changes being driven by AI which is already reshaping every sector of the economy from healthcare and finance to manufacturing and education. Rather than waiting to catch up as it normally does, Wales needs an AI strategy with funding dedicated to improve public services and boost business productivity, harnessing technology to create better jobs and improving the competitiveness of Welsh firms.
Public investment must also work harder as too many schemes, especially those managed by the city and growth deals, seem to be chasing headlines instead of outcomes. Bringing all funding opportunities under one transparent Welsh Innovation and Growth Gateway would make it easier to see what can work with projects that attract private co-investment or deliver clear returns in productivity and local regeneration being prioritised.
As part of this, there also need to be a focus on revitalising our town and city centres, where economic decline is most visible. In Bangor, we are already seeing how this can work in practice where my business partner Nick Pritchard is driving change in collaboration with Gwynedd Council to bring life back to empty buildings, attract new firms and reimagine the town centre as a place to live, work and visit. That public-private partnership should be the model for every Welsh town - practical, locally led and rooted in entrepreneurship not bureaucracy.
Government must get out of its own way as planning delays, slow procurement and layers of grant paperwork has become one of the biggest barriers to doing business in Wales. To deal with this, a “better regulation for business” review, led by entrepreneurs rather than officials, could strip away unnecessary red tape. Procurement reform could also ensure that a far higher proportion of public contracts go to Welsh SMEs, supporting jobs and keeping value local.
Whilst six months is not enough to solve every problem, it is enough to change direction. If she really wants to start making a difference, the First Minister should commit to a new hundred day plan for action at her Investment Summit next month, committing the funds provided from the Ƶ Government alongside the Welsh Government’s own resources to deliver a radical growth strategy for Wales before the Senedd election with the aim of creating tens of thousands of new jobs over the next three years and boosting economic prosperity.
Certainly, something needs to be done to kick start the nation from its doldrums and if she can’t or won’t rise to that challenge, then I am sure that the leaders of the other parties will step forward over the next few months with their own plans to unlock Wales’s future economic potential.
