MS reacts to report about Wales' economic position
A new report has revealed that Wales ranks lowest in a comparative assessment of economic competitiveness across the regions of England and Wales.
The NICE Index (Networks, Innovation, Creativity and Entrepreneurship), developed by Professor Robert Huggins (Cardiff University) and Professor Piers Thompson (Nottingham Trent University), paints a troubling picture of Wales's economic position.
The report places Wales below every English region, with many Welsh local authorities languishing at the foot of the league table.
Prof Huggins said: 'Unfortunately, Wales remains economically cut off from many parts of the rest of the UK, indicating that despite some positive policy developments there is still much to do.
"Our findings reveal that Welsh communities are not just struggling with physical infrastructure deficits in terms of transport and housing, they're suffering from profound behavioural barriers that prevent them from creating the networks, innovation, and entrepreneurial cultures essential for modern economic success.'
He added: "We're not dealing with a simple infrastructure problem that can be solved by building roads or broadband networks, Welsh communities need behavioural interventions that help people rebuild confidence, create networks, and develop entrepreneurial cultures.
"The UK Government has recently launched a new industrial strategy, and while this may produce some benefits for parts of Wales it will not address these more fundamental behavioural challenges."
The report confirms what Welsh Conservatives have long stated, that under Labour our economy is broken in Wales and the only way it can fixed is by creating a Wales that is open for business.
To achieve this, we would remove the regulatory stranglehold on our economy by overhauling the current business rates system, abolish rates for small businesses to revitalise our town centres, and axe the damaging Tourism tax.
Meanwhile, another report, this time by the Bevan Foundation, has revealed that high childcare costs in Wales are pushing more families into poverty and out of work.
The report concluded that the soaring cost of childcare is beyond the reach of many, with some families now limiting the number of children they are having due to costs.
The UK Government has outlined proposals that by September 2025 it will extend 30 hours of free childcare to eligible working parents, for every child over the age of 9 months.
It is disappointing that the Welsh Labour Government has not made this same commitment, despite receiving additional funding from the UK Government to match this – they should be supporting Welsh parents to stay in work and contribute to their communities.
For help, email Mark.Isherwood@senedd.wales or call 0300 200 7219.
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