Plaid Cymru announces plans for National Development Agency

Plaid Cymru has announced plans for a National Development Agency, aiming to boost the Welsh economy, alongside a raft of reforms to other institutions.

This announcement comes as the party criticizes Labour’s long-standing governance of Wales and promises significant changes if elected in 2026.

Vision

Plaid Cymru’s Economy Spokesperson, and regional MS for South West Wales, Luke Fletcher MS, addressed the party’s Annual Conference in Cardiff, where he unveiled the party’s ambitious plans for the future of Wales’ economy.

Mr Fletcher emphasized the need for urgent reforms, criticizing the Welsh economy’s stagnation under 25 years of Labour leadership, pointing to stagnant Gross Domestic Product (GDP), Gross Value Added (GVA), and income levels, which have left the economy trailing behind most of Europe.

He argued that Labour’s economic policies have led to nearly a third of Welsh children living in poverty. He claimed that Labour had “no plan” for the Welsh economy and highlighted their failure to meet economic targets, particularly in the wake of challenges such as Tata Steel’s job cuts.

In contrast, he claims Plaid Cymru’s economic vision is built on the principle that Wales needs to “own more” of its resources, institutions, and businesses to break free from economic stagnation.

Innovate

At the heart of Plaid Cymru’s plan is the creation of a new National Development Agency. This agency would aim to spearhead efforts to grow and green the Welsh economy, taking a proactive role in fostering innovation and supporting small and medium-sized businesses.

According to Mr Fletcher, innovation will also receive a significant boost through a dedicated innovation agency for Wales, a body that would work alongside the NDA to drive creativity and investment across sectors.

The Development Agency would streamline Wales’ business support network by offering a “one-stop-shop” for entrepreneurs looking to scale up their businesses.

Fletcher explained that many Welsh companies, particularly successful ones, often get sold off to larger businesses in England, draining resources and potential from Wales, the Agency would aim to keep these businesses rooted in Wales, creating sustainable growth that benefits local economies.

Backbone

Plaid Cymru’s strategy places a strong emphasis on supporting small and medium businesses, which Fletcher described as “the backbone of the Welsh economy”.

His proposal includes reforms to business rates and other support mechanisms designed to help Welsh businesses grow and remain within the country.

The goal, according to Mr Fletcher, is to overcome Wales’ ‘Missing Middle, a term referring to the lack of medium-sized businesses that play a key role in driving regional and national economies.

These businesses, Mr Fletcher argues, if properly supported, could become powerful engines for innovation, investment, and job creation in Wales.

The reformed Development Bank, another key proposal, would provide smaller businesses with the financial backing necessary to scale up, while ensuring that local communities benefit from the success of home-grown businesses.

Sustainable

Mr Fletcher’s speech also underscored the importance of greening the economy, aligning Plaid Cymru’s economic plans with environmental sustainability.

The Development Agency would lead efforts to decarbonize industries and promote renewable energy projects, creating jobs while addressing the climate crisis.

Plaid Cymru says it aims to ensure that successful Welsh businesses not only thrive, but do so in a way that is environmentally responsible. By focusing on both economic growth and sustainability, the party believes it can offer a fresh start for the Welsh economy, ensuring prosperity for future generations.

In concluding his speech, Mr Fletcher set his sights on the 2026 Welsh elections, framing them as an opportunity for Wales to chart a new economic course

“The Welsh economy can and should serve the people of Wales,” Mr Fletcher stated, emphasizing Plaid Cymru’s commitment to putting local interests at the heart of economic policy.

The party’s proposals mark a significant shift in the economic discourse in Wales, offering a detailed alternative to Labour’s long-standing approach.

Whether Plaid Cymru can deliver on this vision, though, will depend on their ability to win over the electorate in the coming years.