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.”
Details of how the productivity goal will be measured and monitored will be announced later in the year, the Welsh Government said.
