Plaid Cymru to set out ‘radical’ and ‘ambitious’ economic vision

A Plaid Cymru MS will set out the party’s ” radical” economic vision at the annual SNP Conference in Edinburgh today (1 September).

In response to Prime Minister Sir Keir Starmer’s warning of a ‘painful’ budget coming this October, Luke Fletcher, Plaid’s economy and energy spokesperson, says he will “in stark contrast” offer a message of hope at the SNP’s 90th Annual Conference.

Mr Fletcher will say that “Labour’s austerity 2.0” and the threat of the far-right must be stopped by taking “a radical vision for real, ambitious and deliverable change” over the next 18 months ahead of the devolved elections in 2026.

‘Osbornomics’

In his speech, the Senedd Member for South Wales West will say: “Labour have chosen – and it is a choice – to stick with Osbornomics – to double down on a failed economic model which has slashed investment and hollowed out our communities.

“Austerity 2.0: bought, signed, sealed and delivered by and for the vested interests that are very happy with and profit from the status quo.

“And let’s be in no doubt – there are those who will look to exploit – who are already exploiting – the further hardship and suffering that Labour’s austerity will cause in our communities. The snake-oil salesmen of the far-right are looking to sow and deepen division.

“Conference – we cannot, and we will not let them. We will beat them by offering hope – a radical vision for real, ambitious and deliverable change.

“Over the next 18 months and building on our successes at this year’s Westminster election, we will be taking that vision to every doorstep in Wales.

“A Plaid Cymru Welsh Government will overturn 25 years of economic stagnation under Labour – delivering economic renewal through setting measurable and ambitious targets for an economy that prioritises decent work, sustainability, and economic well-being.

“A new development agency for Wales will prioritise growing and supporting Welsh-owned businesses, underpinned by a new deal for small businesses on rates.

“A new funding settlement for our universities will help to drive innovation.

“A skills audit and new supports for vocational training will see our young people equipped with the skills they need to secure high-paying, high-skilled jobs in the green economy.

“And above all, new supports for social enterprises, community-led ventures and co-operative businesses will build, retain and recycle wealth in our communities.”

Short-term pain

In his speech in 10 Downing Street’s garden on Tuesday, Sir Keir warned the next Budget would be “painful”, and said the public needed to “accept short-term pain for long-term good”, taken by some as paving the way for tax rises.

Speaking to reporters following his speech, The Prime Minister said the public would still see an improvement by the end of the Parliament.

He said: “Let me inject some hope because the whole point of this exercise is to make sure we can bring about the change that we need.

“If you don’t clear out the rot and don’t do it properly, you’ve got nothing to build on, and therefore this is a vital step.”

Challenged on specific tax rises, the Prime Minister reiterated his manifesto commitment not to raise income tax, national insurance or VAT – which he has previously described as taxes on “working people”.

Fuel duty

But he was unable to rule out the first rise in fuel duty since 2010, saying he would not “speculate” on the Budget.

He said: “Whatever party is in power, the questions about what’s going to be in the Budget are never questions answered before the Budget.”

“But my absolute determination is to have economic growth. And I do not think that the only levers that a government can pull, particularly a Labour government, is simply tax and spend.”

Commentators have warned that fuel duty could be increased at the Budget, with the RAC’s head of policy Simon Williams saying the 5p discount cost £2 billion but was not passed on to drivers.

Chancellor Rachel Reeves also declined to rule out increases in inheritance tax or capital gains tax, saying she was not going to “write a Budget two months ahead of delivering it”.

Senior Conservatives at Westminster accused Labour of being dishonest about its plans for taxes during the election campaign.

Tory leadership contender Robert Jenrick said the Government was “shamelessly rewriting history” to lay “the groundwork for huge tax rises” while former prime minister Rishi Sunak said Labour had always been planning to increase taxes.