When the Welsh Government published the cross-government economic mission last year, it was clear a return to business as usual was not an option.
The response to the Covid pandemic accelerated many existing trends across decarbonisation, digitisation and the impact of an aging population.
With the remaining Covid legal protections now nearing their end it is an appropriate opportunity to look ahead and set out my longer term priorities for the Welsh economy.
Last week, the UN’s Intergovernmental Panel on Climate Change (IPCC) gave its strongest warning yet – “it’s now or never to limit global warming.” This is a call to action for all businesses, whatever your size.
Rising energy and fuel costs must now spur action to accelerate the transition to net zero. The Welsh Government will support you with this transition. Our Business Wales advisory service covers all aspects from energy and waste to water efficiency measures.
Tackling the climate emergency as part of a just transition to net zero is also the overarching ambition of our new £8.1bn infrastructure investment strategy. In particular, we’ll open up greener forms of transport to more people, providing more choice in how we’re all able to get around as well as laying the foundations for more investment in renewable energy projects.
Wales must win the green jobs dividend that comes with future-proofing the economy.
The UK Government has now published its long awaited energy security strategy, so my message to the UK Government is clear: bring forward your deal and let’s get working on a joint plan for a thriving high value manufacturing sector. Alongside our new body, Net Zero Industry Wales, we hope to grasp the opportunities for Wales to become world-leader in low-carbon manufacturing.
In terms of digitisation, our £56m full fibre roll-out will build on the successful Superfast Cymru project, through the continued deployment of gigabit capable broadband to premises that do not have access to fast and reliable broadband. When taken together with our community focused Local Broadband Fund and our access Broadband Cymru grant scheme, this creates a suite of interventions to improve connectivity across Wales.
Last month, we published our remote working strategy. It outlines our approach to achieving 30% of the Welsh workforce working at or near to home in this Senedd term.
We know every individual’s experience of remote working is unique; and the needs of businesses and organisations are different. This is why our approach focuses on choice and flexibility, rather than a one size fits all. We know for many, the future is not just working remotely, it’s a mixture of working in the office, at home, locally in a hub or in another location.
This type of working can strengthen local communities and bring benefits for the climate and for well-being, as we lessen the dependence on the traditional commute – we are in no doubt that less commuting can be a key contributor to achieving our net zero target.
That said, I’m acutely aware our retail sector, Wales’ largest private sector employer, is going through a period of transition following a difficult couple of years as a result of the pandemic and new ways of working. Next month, I will publish a strategic vision for retail, co-written with the sector and unions, which will set out our ambitions for the sector post- pandemic, and in the face of challenging economic conditions – particularly for our town centres.
We will also publish a progress report on our tourism recovery plan, as we bridge-back to our longer-term visitor economy strategic plan.
At my economic summit in October 2021, I started the conversation about the long-term demographic challenge facing the Welsh economy. The proportion of the population aged 16 to 64 years old in Wales has been decreasing year-on-year since mid-2008 and could be just 58% of the population by 2043. As a cabinet, we have all committed to creating the conditions where more young people feel confident about planning their future in Wales.
We have set out a vision of what makes Wales an attractive place to live, study, work and invest, including the quality of life in an inclusive, open and green nation. My newly appointed ministerial advisory board have been tasked with building on our work to date, as their first challenge.
Against a tough financial backdrop, including the loss of nearly £1bn in post-EU funds, my new plan for employability and skills provides a strong employability and skills offer that is a crucial part of our collective task to make Wales an attractive prospect for more people and business.
However, there is so much more we can do. When I talk to potential investors or those that have come to Wales already, it is the coherent programme, the political stability and the partnership approach Wales has to offer, that provides that extra edge.
In that context, as I said in my recent open letter, I am proud so many businesses in Wales have already taken far reaching steps to stand with Ukraine in their hour of need.
Our social partnership approach has a crucial role in all of this, not least in bringing people together to not only promote fair work and better jobs but as a nation of sanctuary – epitomising the Team Wales approach.
I’m confident about our future. Let’s do all we can to work together in partnership to unleash the true potential of Wales and its people, as we strive to create a stronger, greener and fairer well-being economy and welcome all those who come to Wales.
