Ahead of the Senedd election, the CBI has challenged party leaders to transform Wales into one of Europe’s most competitive and sustainable small economies by 2035 and put a new Welsh Industrial Strategy at the heart of pro-business policies.
Launching ‘Made in Wales: A manifesto to support firms & create jobs 2026-30,’ the CBI calls on the leaders to drive forward technology and innovation, remove planning system bottlenecks, drive forward investment in infrastructure and bring down Wales’ high youth unemployment levels by giving young people access to skills, opportunities and mental health support.
The CBI prioritises a new Welsh Government Industrial Strategy, aligning Welsh and UK policies on the economic growth levers needed to drive investment in Wales.
The business group is also calling on party leaders to work in partnership with business to capitalise on Wales’ enterprise, world-class universities, colleges, skilled workforce and abundant natural resources to bring jobs and prosperity to every corner of Wales.
Key priorities are:
(1) Build a competitive Welsh economy that punches above its weight
- On the need for critical infrastructure to unlock growth: Commit to and deliver a North Wales Metro to allow access to jobs and services. Electrification of the North Wales main rail line. ‘Green light’ road improvements to cut the M4 and A55 traffic bottlenecks.
- Fix Wales’ broken business rates system: Divergence on differential business rates multipliers is damaging Welsh firms, particularly in the hospitality and leisure sectors, making them less competitive than their competitors in England.
- Expand firms’ access to growth finance: Accessing growth capital helps firms scale up. The Development Bank of Wales needs a significant increase in capital and scope to support businesses.
(2) Transform Wales into a global innovation hub
- Double the number of ‘innovation-ready' Welsh businesses: More funding for and better collaboration between businesses, universities and colleges to allow firms to ramp up AI adoption – this will bring game-changing productivity gains.
- Launch a Welsh Innovation Funding Framework: A 10-year-long innovation mission for Wales, with a steady stream of funding, pro-innovation regulation and strong partnerships that can mobilise greater capital funding for innovative Welsh projects with R&D investment across all regions.
- Boost private investment for Welsh innovation: Build on the Wales Investment Fund’s success by attracting larger pools of private capital to co-invest in Welsh technology and innovation.
- Foster a ‘pro-innovation’ regulatory environment: Agile regulation must be geared towards innovation, encouraging projects such as the trial of autonomous vehicles on local roads or the roll out of new renewables projects.
(3) Wales must lead the way in a green industrial revolution
- Unblock planning barriers to green growth: Wales has a once in a generation opportunity to lead the UK’s green industrial revolution. Grid infrastructure capacity issues and consenting bottlenecks prevent renewables projects and/or factories connecting to networks quickly.
- Faster, well-resourced planning is needed to avoid applications being ‘stuck’ for months or years in the system, awaiting approval.
- Upgrade energy infrastructure to speed up green projects: An energy transition Infrastructure Plan for Wales will accelerate green growth and low carbon projects. The next Welsh Government must work with the National Grid and Ofgem to improve infrastructure, especially in Mid and South West Wales.
- A fair green transition can underpin growth: A ‘Just Transition Fund’ is needed to support the ‘green’ reskilling of employees from traditional high-carbon industries, such as steel, and make energy more affordable for businesses.
- Work with industry to lower high energy costs for business: Firms could be given certain business rates reliefs, or temporary energy cost support, in return for investing in emissions-cutting technology.
(4) Redouble efforts to help young people into work
- Ensure more young people benefit from the Youth Guarantee: Every 16-24-year-old must be offered access to paid placements, integrated with mental health support, alongside more flexible, employer-led skills routes that match real jobs.
- Introduce a flexible system for lifelong training: Create a modern ‘Skills Account’ model allowing businesses and workers to build up credits from Wales’ share of the UK Apprenticeship Levy, or other public funds, to spend on approved training.
- Tackle immediate industry skills needs and foster stronger industry/education links: Give Regional Skills Partnerships a more formal role in over-16s apprenticeships, bringing together direct collaboration between business, schools, colleges and universities.
- Champion healthier, more inclusive workplaces: Extend Public Health Wales’ successful ‘Healthy Working Wales’ scheme to improve mental health at work.
- Break down barriers to women in leadership: Parents, in particular women, need more access to free childcare – an essential economic lever – to allow them to return to work.
Russell Greenslade, CBI Wales Director, said:
“Welsh businesses have shown great resilience and a fierce competitive streak to deal with both the high cost of doing business and swirling uncertainty experienced over the past decade. This election is an opportunity for party leaders to make Wales one of Europe’s most competitive and sustainable small economies by 2035.
“A new Welsh Industrial Strategy that capitalises on the UK’s Modern Industrial Strategy, and other UK policies on technology such as AI, can be a game-changer in raising innovation and productivity, bringing prosperity and high-quality jobs to every corner of Wales.
“Getting more young people into work will improve their mental health and tackle the skills shortages that blunt firms’ prospects. Enterprising businesses, a world-class education sector, abundant natural resources, and a superb geographical advantage can all give Welsh businesses a competitive edge over their rivals. Working with business, party leaders must focus on what unites Wales to drive long-term sustainable growth.”
