GUEST COLUMN:
Robert Lloyd Griffiths
Director for Wales
ICAEW
‘Growth’ and ‘hope’ was how Rt Hon Mark Drakeford MS, the Cabinet Secretary for Finance and former First Minister, described Welsh Government’s draft budget at the end of 2024.
As we head into 2025, the clock will be ticking. Cabinet Secretaries and Ministers in Cardiff Bay will be conscious that they need some quick wins in advance of the next Senedd election in May 2026 while the UK Government will be looking to start delivering on Invest 2035, their 10-year growth plan.
Both Governments have talked with great enthusiasm over the past few weeks about their strategy to deliver the certainty and stability that businesses need. They have set out their plans to drive investment and tackle barriers to growth in our highest potential growth-driving sectors and places. With no major investments in Wales for over 20 years, it is now time to stop talking and start doing. The tide has to turn.
We will have all seen the headlines around the major investment summit that is coming to Wales next year. It is being billed as an opportunity to showcase Wales to global industry leaders and potential investors. That’s great but, like any business preparing for investment, we must be investment ready.
Embedding the right conditions for increased investment and the creation of high-quality jobs takes time and requires some bold decision making. We’ve got to take some risks because investors are going to want to see more than pretty pictures of our beautiful coastline and stunning countryside.
A warm Welsh welcome is guaranteed but a transport system that is fit for purpose, and a readily available pool of skilled talent is not. These are key issues that are critical for driving investment along with the availability of business finance, planning, and infrastructure. Investor confidence will depend on this.
The debate around the M4 relief road may have come and gone (albeit that many still say it was a cracking own goal for Wales) and memories of the Swansea Bay Tidal Lagoon seem like a forgotten dream now, but we still have the chance to make Wales the best place to invest in the UK.
The public and private sectors need to work together to demonstrate that we really are pro-business. Removing barriers to investment means policy changes, accelerating planning decisions and nurturing future talent. It means making things happen.
We must address the skills shortage because that is having a significant impact on our productivity, competitiveness and future growth. Hiring and retaining skilled labour is a critical barrier to success.
I am pleased that Welsh Government will continue to deliver 100,000 all-age apprenticeships over this Senedd term and maintain investment at £144 million but this is less than the original target of 125,000 for the period.
Apprenticeships provide a pipeline of new and needed skilled talent for business and enable employers to upskill, develop and diversify their existing workforce. I’ve seen first-hand the impact of the Welsh Government Apprenticeship Programme, but I also know that there is still room to do more.
Cardiff and Vale College Group is the largest provider of apprenticeships in the country. They hold two of the ten commissioned contracts in Wales and deliver over 14,500 apprenticeships and traineeships across more than 2,000 employers that range from leading global brands to smaller family-owned businesses. They have also pioneered the successful Junior Apprenticeship programme that is designed to increase the number of young people in education, employment or training and reduce the number of NEETs. Independent reports suggest that Junior Apprenticeships save the public purse up to £750,000 per person in preventative spend over the course of a 40-year working life and 60-year adult life by reducing the risk of unemployment. This is the kind of bold and innovative measure that will put Wales firmly on the path to growth.
But let’s not forget that there is an inextricable link between people and transport. Moving people, goods and services around Wales must be a given, not a luxury because an effective transport system is a key driver of economic growth. The additional £69.6 million for transport and £51 million extra in capital funding that has been included in the draft budget is to be welcomed. Investment in transport creates jobs, stimulates local economies and helps to improve GDP.
2025 really is the year that we must play to our strengths. We’ve got the opportunity to make a long-lasting, positive change to our economy and our future generations. It’s now time to deliver because we won’t get a second chance. Here at ICAEW, we stand ready to play our part.
