Getting down to business

In December the new First Minister of Wales will be elected. Today the CBI set’s out our priorities for the Welsh Government.

Our report, Getting Down to Business, recommends action in four areas: economy, people, place and delivery.

Key recommendations

These recommendations complement our Wales manifesto, A Plan for Prosperity. Implementing these proposals will put Wales back on the front foot and make the Welsh Government an enabler of growth.

Economy – unleash business potential to grow and prosper

• Help prepare Wales for Brexit: Support our economy’s key growth sectors to best navigate the challenges and opportunities of Brexit; adopt a pro-active trade policy to strengthen economic resilience; protect the pillars of the UK internal market; underpin economic competitiveness by ensuring our business environment is prepared for Brexit; and ensure post-Brexit funding helps drive a more productive and innovative Wales.
• Embrace the fourth industrial revolution: Following the example of other European countries by putting in place a whole-government response to automation, AI, IoT and big data; develop a digital asset map for Wales and put in place permanent governance arrangements that optimise public-private engagement and commercialisation of research.
• Deliver a competitive tax environment: Closely monitor the economic consequences of all differential devolved tax rates; ensure an evidence-based debate is held on the question of varying income tax rates; consider innovative new approaches to taxes that would reduce rates and grow the economy.
• Ensure the approach to post-EU funding delivers sustainable economic growth: The Welsh and UK governments must work together to ensure the successor to EU funding – potentially the UK Shared Prosperity Fund – delivers tangible and sustainable economic growth within Wales’ poorest communities.
• Grow the Development Bank for Wales: Enlarge the role of the Development Bank by considering giving it responsibility for delivering the functions of Business Wales and Careers Wales in a more responsive and effective way for business and the economy.
• Create a Productivity Task and Finish Group: Tackle Wales’ productivity gap with the rest of the UK once and for all. Establish a task and finish group to determine if Wales should establish a New Zealand style productivity commission to consider how the laws, policies, regulations and institutions of Wales affect our national productivity and how it could be improved.

People – prepare for our changing economy

• A fair deal on fair work: Ensure the Fair Work Commission is given the space and resources to take evidence and make the right recommendations; ensure fair work legislation is used as a last resort not a first response and, if pursued, is subject to a comprehensive business impact assessment, oversight and review.
• Ensure qualifications remain relevant to our fast-changing economy: Ensure Welsh GCSEs, A-Levels and the Baccalaureate keep pace with changing business needs and explore how Wales can learn from T-levels to improve the career path for learners and improve parity of esteem.
• Ensure the Apprenticeship Levy system works for businesses: Adopt the Scottish Government’s Flexible Workforce Development Fund and fast-tracking in-demand frameworks - such as digital apprenticeships.

Place – build infrastructure to create strong regions

• Deliver infrastructure improvements to drive growth: Deliver the M4 Black Route, South Wales and North Wales metros, A55 improvements, the new Transport for Wales franchise and the expansion of Cardiff Airport; Maximise the benefit of the £15bn Wylfa Newydd project for North Wales; and ensure the National Infrastructure Commission for Wales delivers a step-change in how infrastructure projects are planned and delivered.
• Develop stronger, more dynamic regions: Develop a coherent vision for the economic regions of Wales that is coterminous with City and Growth Deals; secure a growth deal for mid Wales and keep open the options of regional development agencies if a clear need emerges.
• Commit to local government reform: Clearly with tightening budgets, local government is already delivering in challenging times. Reducing by at least half the number of local authorities in Wales would enhance public sector productivity, equipping the new authorities with the critical mass and capacity to deliver services effectively should be the goal of these reforms.

Delivery – make Welsh Government a driver of growth

• Improve public service productivity: Given many public services are anchors of our local economies, we need to ensure they are playing an effective role in the foundational economy. The Welsh Government should identify the role public services could play in driving up national productivity and regional growth.
• Deliver a devolution dividend: Create a First Minister’s Delivery Unit at the heart of Welsh Government capable of tracking progress, measuring outcomes and intervening if delivery appears to be stalling or if devolved policy is placing a cumulative burden on key sectors of our economy.
• Modernise public services: Ensure public services have the right capacity and capabilities and to embrace the productivity enhancements promised by digitalisation, automation and AI. The Welsh Government should consider the recommendations of the Welsh Government Panel on Digital Transformation to determine how devolved public services are maximising the value of digitisation and ensure emerging technologies are used for the public good.

Share best practice between the public and private sectors: Ensure a better exchange of ideas between the public and private sectors through a new secondment programme.