As 2025 begins, there’s a palpable sense of opportunity for the Welsh economy. The past year brought signs of progress and promise, but this year must be about delivery.
With an ambitious agenda of projects, consultations, and collaboration ahead, the stakes couldn’t be higher. This is not just a year for ideas, it’s a year for action – and fast, decisive action at that.
Take the upcoming Investment Summit, set to be hosted by Welsh Government. It offers a prime moment to put Wales firmly on the map for international investors. But success will depend on preparation and teamwork. Welsh and UK Governments, growth deals and the business community all need to come to the table with clear objectives. What kind of industries do we want to attract? What will set Wales apart? Above all, we need to ensure the summit generates real results – investment commitments, not just headlines.
Momentum will be crucial in other areas too. Major initiatives like Morlais, the Freeports programme, and Investment Zones are set to move into the delivery phase. These projects hold the potential to drive growth, attract investment, and create jobs, but only if the pace of progress is maintained – or better yet, accelerated. Delays at this stage would risk sapping business confidence and derailing years of planning.
And confidence is the lifeblood of economic growth. Businesses that feel certain about the future invest in people, skills, and infrastructure. Those facing uncertainty hold back. This year, we need to ensure that businesses across Wales feel supported and secure. Yet this is easier said than done when challenges like planning bottlenecks cast a shadow over progress.
The UK Government has moved fast to announce bold reforms to the planning system in England, and it is encouraging that Welsh Government has launched a consultation setting out proposals for improving the capacity and resilience of planning services. Resource shortages and expertise gaps in local planning authorities and Planning and Environment Decisions Wales (PEDW) have created a system that too often feels sluggish and reactive. Business needs to see concerted action early in 2025 to address these issues and ensure planning keeps pace with demand. Without reform, we risk losing investment to regions where processes are faster and more predictable.
Similarly, clarity is urgently needed on proposed legislation like the Visitor Levy and Deposit Return Scheme (DRS). Tourism, hospitality, and food and drink businesses are rightly concerned about how these changes will impact their industries. While legislation to improve sustainability and public services is important, it must be implemented in a way that works for businesses, not against them. The listening approach promised by Eluned Morgan’s Cabinet is a good start, but it must translate into meaningful consultation and practical solutions.
This year also marks a critical juncture for political decision-making. As the 2026 Senedd elections edge closer, the temptation to slow down could be strong. But the Welsh Government cannot afford to let the urgency of action wane. Business leaders need to see policies that foster growth and stability, ensuring that companies feel confident to invest through 2025 and beyond.
There are, however, promising signs. December saw the launch of the UK Government’s Economic Growth Advisory Group, tasked with shaping Welsh priorities for the next Spending Review and the Industrial Strategy expected in the spring.
At the same time, the Wales Economic Forum, convened by Business News Wales, launched with Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, in attendance. The forum’s first meeting sent a strong, positive message, with the Cabinet Secretary emphasising her commitment to effective communication with business leaders.
These developments should give the business community reasons to be optimistic, but optimism alone won’t drive growth. This year must be one of delivery – on infrastructure, on planning, on clear and consistent policy.
Above all, it must be a year of collaboration. The challenges are significant, but so are the opportunities if the Welsh Government, UK Government, and business community work together effectively.
The time for talk is over. Wales needs action and 2025 is the year to deliver it.
