Plaid Cymru must now deliver on its pledges to unlock the potential of the Welsh economy as it forms the new Welsh Government, business leaders say.
The party is set to form a minority government after winning 43 seats in last week’s Senedd elections.
Reform won 34 seats in a newly-expanded 96-seat Senedd, with Labour winning nine, the Conservatives seven, the Green Party two and one seat going to the Liberal Democrats.
Plaid Cymru leader Rhun ap Iorwerth told Times Radio:
“The numbers are quite clear – Plaid Cymru has that mandate, I think, to go ahead and form that minority government.
“I always said that would be my preferred option and also made it clear that my approach to it would be one guided by a spirit of co-operation where, of course, we will need to find common ground with others on various bits of legislation and budgets and so on, but we are in a position now I think where we are able to move forward and we look forward to hitting the ground running in the coming days.”
ap Iorwerth could become First Minister as early as Tuesday, if he is successful in a vote of Senedd members.
Writing for Business News Wales Joshua Miles, Head of Wales at the Federation of Small Businesses, described the election result as “one of the most consequential days in Welsh political history”, saying:
“This isn't simply a change of government. It's a realignment. A moment that is cultural as well as political.”
“Plaid fought this election on a serious economic platform,” Miles writes, adding that priorities for the new government should include business rates reform, public procurement reform, and the creation of a new National Development Agency, which was a key pledge in the Plaid Cymru manifesto.
Miles calls on the new Welsh Government to provide “a clear economic strategy, with achievable targets and genuine accountability”.
Working alongside the business community and involving them to co-design initiatives such as a National Development Agency and plans to grow the number of Welsh-owned medium-sized businesses is imperative, Miles says.
Congratulating Plaid Cymru, Russell Greenslade, Director, CBI Wales, also called on the new government to focus on partnership working, including with business.
He said:
“Against a backdrop of rising costs for businesses and consumers, the new government must deliver a more innovative, competitive, prosperous economy that benefits communities in every corner of Wales.
“Key to economic success will be the creation of a Welsh industrial strategy – a potential game-changer for the Welsh economy that can deliver growth, create jobs and raise living standards. Business will also work closely with the incoming ministers as they develop their plans for a National Development Agency, which can help remove investment barriers and turbo-charge investment in Wales.
“Partnership is critical to achieving the economic growth to realise the ambition of becoming one of Europe’s top performing sustainable small economies by 2035. That means better, more effective collaboration between the minority administration, the other political parties at the Senedd, the UK Government and business, to transform Wales’ economy.
“For business to be a true partner in prosperity, the incoming government must lift the handbrake on private sector investment and growth. That means fast-tracking shovel-ready infrastructure projects, expanding sources of patient capital, and ensuring regulation and business policies which incentivise productivity improvements.”
Dr Edward Thomas Jones, Senior Lecturer in Economics at The Albert Gubay Business School, Bangor University, said that whilst the election result sets the direction of policy, it is now down to delivery over the course of the Senedd term to determine whether that translates into improved economic performance for Wales.
Writing for Business News Wales he says that operating as a minority government means that policy commitments will need to be prioritised, phased over time, and maintained through agreement with other parties.
“For the new Plaid Cymru Government, the test will be whether it can set clear priorities, align them with the powers available, and ensure that institutions are structured to deliver against them,” he writes.
Read Joshua Miles’ column here and Dr Edward Thomas Jones’ column here.
