Given Wales’ stagnant job numbers and the rapid upward trajectory of Northern Ireland and the North East of England, both recently having overtaken us, Wales now has the lowest employment rate of the 12 nations and regions of the UK.
The cause of which is clear, a steady increase in economic inactivity coupled with rising unemployment. Labour have an Economy Minister here in Wales, the levers are firmly in their grasp. It is primarily Labour’s job to get to grips with this and create the business friendly environment required to turn this situation around.
The signals put out by the government, here in Wales, are important. Labour have governed as a generally anti-business party, with any vaguely pro-business measures brought forward with the caveat that they may be reversed.
For example, I welcome the decision not to raise income tax in Wales, against the wishes of Labour’s cooperation partners, Plaid Cymru. However, given that Labour are overly careful with their language, stating that there are no plans to increase the burden of taxation for ‘this budget’, it is completely understandable why Wales performs poorly in terms of business confidence and inward investment.
Wales needs to give out clear signals that taxes aren’t going up for the foreseeable future. Welsh Conservatives are keen to make that clear, that income tax would only ever go down if we had anything to say about it.
Wales needs a firmer approach with a fully fleshed out economic plan that signals to entrepreneurs and the job creators of the United Kingdom and beyond that Wales is open for business.
Businesses are fully cognisant of the fact that after 25 years of Labour mismanagement, we have socialists in Cardiff Bay who are completely disinterested in engaging with the job creators of Wales.
We must be unequivocal in saying that taxes will not be going up, as to indicate to employers and employees that Wales is open for business.
In 2021, the Welsh Conservatives offered a bold plan to pursue an ambitious national mission to increase employment and reward the people of Wales on its completion with the first ever post-devolution cut to income tax.
We would welcome this kind of revenue neutral policy that will enshrine a target to work towards, in contrast with the languishing job numbers we are seeing in Wales under Labour, at present.
Labour don’t get it. Just look at their anti-tourism policies, a sector that supports 1-in-7 jobs in Wales.
A toxic tourism tax, that the industry don’t want and certainly do not need would put thousands of jobs at risk. A policy that is used by places such as Amsterdam, Venice and Bhutan for the stated purpose of discouraging what they see as over-tourism.
The Welsh Conservatives have spoken to numerous self-catering accommodation providers who are suffering from soul-crushing stress and will be shutting down due to Labour’s new ill-thought-out 182-day regulations.
I have met with people directly affected by this rule change in Pembrokeshire and I can say having seen first-hand, it is creating a distressing situation for them, unnecessarily. Hardworking business people are being forced to sell up.
In response to Labour’s disastrous budget, where health and education were cut in real terms, the Welsh Conservatives published an action plan to address the Welsh people’s priorities, which included support for business.
Microbusinesses, under our plan, would be eligible for a national insurance refund for two new employees for two years. This is because we understand that new enterprises looking to grow have a steep hill to climb when it comes to employing staff.
We also put forward a positive plan to future proof the Welsh economy, by offering small businesses grants to cover the cost of solar panels. This would help with the cost of energy, another key barrier for new and small ventures and will improve their profitability.
Non-domestic rates are one of the key barriers to high street businesses staying open and Welsh rates are the highest in Britain. I want to see business rates reform and the introduction of a tapered system where new shops pay nothing when they first open and they are eased into paying the tax as they first get on their feet.
Wales has benefited, thanks to Welsh Conservative calls, from not just one, but two freeports. Anglesey, Milford Haven and Port Talbot will benefit from tax relief, leaner planning regulations and more simple customs arrangements. I’m immensely proud of this achievement having campaigned for the Celtic Freeport bid myself.
The UK Conservative government has also taken an active role in promoting growth and employment opportunities in Wales, with their Levelling Up, Shared Prosperity, Community Ownership and Renewal funds.
The UK Government is supporting Wales with £1.75bn in targeted funding to regenerate landmarks, improve facilities and investing in the jobs of the future.
The Labour Government should be looking to replicate some of these funds to further support the Welsh economy, as opposed to pursuing their vanity projects, be that spending £100m a term on sending more politicians to Cardiff Bay or spending millions on pet programmes like UBI pilots and constitutional committees.
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