The Welsh Government is launching a new “economic mission” which it says will boost pay and halve Wales’ productivity gap with the rest of the UK within ten years.
Adam Price, the Cabinet Minister for Enterprise, Connectivity and Energy, said that with Welsh productivity 15% below the UK average he wants to make Wales the easiest place in the UK to start, grow and invest in a business.
Delivering his first Oral Statement to the Senedd, the Cabinet Minister said the new Welsh Government is committed to adopting a different approach, with a goal of bringing to an end generations of low productivity.
The new approach will be delivered in partnership with businesses, trade unions, regional stakeholders and the UK Government, with a specific focus on supporting firms to scale so they can compete in high-value markets, the Welsh Government said.
It added that this will be supported by a reformed skills system “that equips people not just for work, but for progression”.
Adam Price, the Cabinet Minister for Enterprise, Connectivity and Energy, said:
“Today we announce a National Productivity Goal to close the gap with the rest of the UK and help unlock the full potential of the Welsh economy.
“For too long, Wales has struggled to close the gap with the rest of the UK when it comes to productivity. Announcing this target today shows our clear commitment to improving the lives of people living in Wales.
“By focusing on productivity, we will deliver higher pay, stronger businesses and thriving communities.
“This goal will give direction to our new Welsh innovation and development agency, shaping how we support businesses, develop skills and invest in the foundations of a stronger, more competitive Welsh economy.
“We are determined to turn ambition into action, creating a stronger, more productive economy that delivers for people in every part of Wales.”
Professor Melanie Jones, Academic Lead for the Wales Productivity Forum, Cardiff Business School, said:
“The Wales Productivity Forum is delighted to see productivity growth central to the economic strategy of the new Welsh Government. The announcement of a target for productivity growth is a bold, but much needed, first step in establishing the long-term commitment to improving productivity in Wales that we have been calling for to raise living standards. We welcome the opportunity to work in partnership with the Cabinet Minister to develop the plans required to achieve this.”
Robert Lloyd Griffiths, Director of ICAEW in Wales said:
“The Minister’s commitment to closing Wales’ productivity gap is welcome and sends a strong signal about the importance of long‑term economic renewal.
“Productivity is fundamental to improving pay, strengthening competitiveness and raising living standards across Wales, and it is encouraging to see it placed firmly at the centre of the Government’s economic mission.
“ICAEW has consistently made the case that productivity must be treated as a strategic priority. Our manifesto for Wales calls for a clear champion for productivity to help drive focus, coordination and delivery across skills, investment and innovation. That ambition aligns closely with the direction set out by the Minister.
“Wales has significant economic strengths, but businesses need certainty, stability and a supportive operating environment if they are to invest, grow and improve performance. With the right leadership and partnership between government and business, there is a real opportunity to make sustained progress.
“ICAEW and our members stand ready to support the Minister as plans are taken forward. Chartered accountants work at the heart of the Welsh economy, helping organisations improve productivity every day, and we look forward to contributing that expertise to support Wales’ economic future.”
Details of how the productivity goal will be measured and monitored will be announced later in the year, the Welsh Government said.
