Business organisations have called on the new First Minister to focus on the economy, skills and ‘re-setting relationships’ with business.
Eluned Morgan was confirmed as Wales’ new First Minister after a vote in the Senedd, becoming the first woman to hold the post.
The Federation of Small Businesses in Wales said the new First Minister had an opportunity to “re-set the Welsh Government’s relationship with Welsh businesses following a prolonged period of navigating difficult economic headwinds”.
It asserted that the Welsh Government could send a clear signal that they will work in partnership with businesses in re-growing the Welsh economy by establishing a New Deal for Business Group, building on the model adopted in Scotland.
It said the New Deal for Business Group would provide a vehicle for government and businesses to work together in the spirit of shared responsibility to secure sustainable economic growth, accelerate to Net Zero and better understand regulatory impacts on businesses.
FSB Wales Policy Chair Ben Francis also welcomed the work that Baroness Morgan has previously undertaken on supporting small businesses in the rural economy and urged the First Minister to build a constructive partnership between the Welsh and UK Governments to ensure that Wales has a distinctive voice within the UK Government’s Growth Mission.
Ben Francis, FSB Wales Policy Chair, said:
“On behalf of FSB Wales, I congratulate Baroness Eluned Morgan MS on her election as the new First Minister of Wales and Wales’ first female leader.
“The First Minister’s clear focus on prioritising the Welsh economy in order to spread prosperity is a positive signal that will be welcomed by businesses.
“At a time of slowly-improving economic conditions, the First Minister has an opportunity to re-set the Welsh Government’s relationship with businesses by establishing a New Deal for Business Group. This is an opportunity to win back confidence and to show a commitment to working in partnership on the mission of rebuilding the Welsh economy and aligning Welsh Government’s available levers to this goal.
“This will also require a new, and more effective partnership between the UK and Welsh Governments. Challenging relationships alongside duplicated and disjointed decision making to date has done nothing to build business and investor confidence. Growth should be a shared mission, recognising and utilising the strengths, of UK, Welsh and Local Government decision makers.
“Despite some improvement, Welsh businesses are still facing challenging economic conditions. That is why it is vital that we enable small businesses to thrive, because when they do, they create jobs, spread prosperity and keep our communities vibrant.”
Ian Price, Director, CBI Wales, said:
“CBI Wales congratulates Eluned Morgan on becoming Wales’ first female First Minister. Business looks forward to working with her government to tackle issues such as funding for apprenticeships and the upskilling and retraining of the workforce to deliver a sustainable Welsh economy. The new First Minister must also prioritise the Tata Steel negotiations and work with the UK Government to find a solution that delivers clarity over its future.”
Head of the Welsh Retail Consortium, Sara Jones, said: “The Welsh Retail Consortium congratulates Eluned Morgan on becoming the first female First Minister and welcomes the appointment of Deputy First Minister Huw Irranca Davies. All eyes will be on the approach taken over the coming months, and it is vital that the economy is at the forefront when it comes to framing the priorities of the new Cabinet. There is a pressing need to lift private sector investment and productivity creating a new economic era for growth for Welsh firms. After all, an expanding economy is good for living standards, job prospects, and government revenues.
“Central to this should be a plan to ease the regulatory burden and lower the tax burden on business, with a clear timetable to significantly lower business rates, whilst ensuring that the Government’s own Retail Action Plan has the resource and drive needed to help the industry thrive. By creating the right environment for growth and investment, the Welsh Government will help strengthen their social partnership approach.
“Ultimately, every policy should be tested against a simple benchmark – will it help or hinder Wales’ economic recovery. The WRC looks forward to engaging positively and constructively with the First Minister and her Ministerial team to prioritise private sector growth and deliver that recovery.”
