I suspect we can all share the same aim – that is to see a Mid Wales which is more prosperous. It goes without saying that a strong economy opens a whole range of exciting opportunities for the public to grasp.
In a nut shell, the stronger the economy the more resources can go into our vital public sector, including schools and hospitals whilst also ensuring they can provide for them and their families. But maintaining the economy’s strength is equally significant.
That is why I applaud both the UK and Welsh Governments for liaising and exchanging positive dialogue on how best equip the Welsh economy in the face of the greatest danger our country has witnessed for decades: Covid-19.
We have all seen the devastating social and economic dimensions to the virus.
Recently a catalogue of welcome measures have been introduced by the UK Government and Welsh Government, most notably the Coronavirus Job Retention Scheme which pledges to pay 80% of workers’ wages if they are put on leave and the £500-million Economic Resilience Fund
However, the Welsh Government must act swiftly to address the further business support needed, and address gaps which I believe have been overlooked in how the Economic Resilience Fund can support our Welsh economy to date.
While immediate support is the priority, the package of financial assistance should not solely be a support package for the "here and now" to navigate the worst effects of the Coronavirus but also as a means to future proof the Welsh economy as we eventually move into a recovery phase, allowing businesses to adapt their business model, innovate through the use of technology, and ensure that they are in a strong position to capitalise upon the opportunities of future growth. I appreciate these are unprecedented times, but we must remember to look to the future.
One of the areas of my work that I most enjoy is going to meet businesses across Montgomeryshire, whether it's one of our largest businesses, or a small business on the high street.
Every year, I am delighted to support Small Business Saturday which is a grassroots, non-commercial campaign, which highlights small business success and encourages consumers to 'shop local' and celebrate small businesses in their communities. Our local high streets are instrumental in bringing people together – acting as a meeting place for friends and families and supporting jobs for local people. Let's do all we can to ensure that our high streets can flourish by shopping locally.
An area in which I feel I can be particularly helpful is raising specific issues which businesses raise with me with Government Ministers to bring about change, but more widely, I’m not entirely convinced that the Welsh Government has a road map for driving forward long term economic development here in Powys.
In my view, the Welsh Government’s latest economic strategy contains plenty of words, but has little ambition and fails to provide any targets on which I can scrutinise the Welsh Government and hold it to account. In short, it fails to provide a comprehensive strategy for delivering economic prosperity in Mid Wales in my view.
This is the fourth economic strategy since devolution and none of them have delivered on their original promise. This has meant that Wales continues to slip behind the rest of the UK.
When it comes to GVA, we are at the bottom of the league table; when it comes to weekly earnings, we are at the bottom of the league table; and when it comes to regional inequality, Powys languishes way behind Cardiff. This is a damning indictment of Welsh Labour’s stewardship of the Welsh economy over the last 20 years. After 20 years of Labour at the helm of the Welsh economy, it is of no surprise that the Deputy Economy Minister, Lee Waters AM, said that ‘we don’t know what we’re doing on the economy’.
This must change and I would like to see every part of Wales benefit directly from Growth and City deals supported by UK Government funding; I want to see Wales have a number of new Trade Envoys in order to boost Welsh export activity and raise our commercial presence in both advanced and emerging economies; and I want to remove the key economic barriers for young people in Wales when trying to access jobs and training. I also believe that a strong Welsh economy should be built around sound public finances, low taxes, free trade and effective regulation; and that no new taxes must serve to over-penalise businesses or individuals such as the regressive proposal for a tourism tax which would hit Mid Wales’ tourism industry hard.
In contrast to the Welsh Government’s so-called Action Plan, which is characterised by a distinct lack of action, the UK Government has published an Industrial Strategy which provides businesses with the security and certainty to plan for their future as well as a firm foundation for improving living standards and investing in the future success of all parts of the United Kingdom. It outlines major investment in infrastructure, new investment in science and R&D, and ensures that growing enterprises have the skills and support, to create new jobs and prosperity.
The Industrial Strategy puts great emphasis on addressing the regional disparity in economic prosperity and the skills shortages which exist within Wales, which if successfully addressed, will drive increases in productivity and social mobility.
Mid Wales Growth Deal
I have been a long-time advocate of pushing for a Mid Wales Growth Deal and I’m pleased to report that its Heads of Terms were signed last month by both the UK & Welsh Governments, as well as Powys & Ceredigion local authorities. This will see £110 million of investment pumped into the region with the deal committing both the UK & Welsh Governments to each invest £55 million.
The partners in the deal will now move on to identifying specific projects to benefit from investment, with 8 strategic growth areas identified. These are:
· Applied Research & Innovation
· Agriculture, Food & Drink
· Digital Connectivity
· Strengthened Tourism Identity
· Business Support
· Skills & Employment
What is particularly pleasing is that the UK & Welsh Governments have closely worked together on securing this deal, in conjunction with the 2 local authorities. I am extremely pleased that we are now one huge step closer to seeing these hugely exciting projects for Montgomeryshire and Mid Wales become a reality.
This investment will bring real growth and new opportunities to Montgomeryshire and Mid Wales as a whole and will be used on areas such as digital infrastructure, transport, agriculture, tourism – all areas which are of huge importance to Mid Wales and will matter even more as we emerge the other side of this pandemic.
I am very pleased by the positive collaboration between not just the UK and Welsh Governments, but also MPs, MS’s and County Councillors. We can now say with certainty that the Mid Wales Growth Deal is actually going to be delivered.