Welsh businesses urge next government to adopt pro-growth agenda

Welsh businesses have called on the new Welsh Government to pursue a pro-business, growth agenda in a roundtable hosted by a Conservative Party movement.

During the meeting hosted by Prosper UK, business owners voiced their desire for the next Welsh Government to pursue a more practical, pro-enterprise approach to growth.

Businesses raised concerns around:

• The Welsh Government’s lack of response to address the skills gap, particularly with the rapid changes in the use of AI and tech
• The ‘missing middle’ – a lack of support for middle sized businesses in the Welsh tech sector, many of whom are now leaving Wales to grow their businesses and secure funding
• Poor access to start-up and growth finance
• A lack of updates around progress on the Celtic and Anglesey Freeports
• A lack of business experience in the Welsh Government and a dis-interest in engaging with businesses

In particular, business leaders urged the government to back innovation, improve support for firms seeking to scale, strengthen skills and infrastructure, reduce administrative burdens, and create a more competitive tax and investment framework.

The recommendations, developed at the roundtable in Cardiff, include cultivating a more investment-friendly environment for innovative businesses attempting, to scale and operate from within the UK, rather than forcing them to look overseas.

They also call for closer coordination between the Welsh Government and manufacturers to strengthen domestic defence supply chains, alongside the removal of regulatory barriers seen as holding the sector back.

On skills, the proposals urge a shift towards AI capability and practical upskilling, with education and training designed to keep pace with rapid technological change and employer demand.

Further recommendations include expanding Level 7 apprenticeships across a wider range of sectors, including the legal profession.

There are also calls to reform how the public sector engages with startups, making it less risk-averse and constrained by process.

The group suggests reinstating the Welsh Development Agency to better support small businesses and local communities, while also urging ministers to engage more closely with the tourism sector and reduce administrative pressures.

Finally, the proposals advocate for a more competitive tax framework in Wales, with greater fiscal powers devolved, alongside an expansion of Freeport initiatives into new regions and sectors.

Andy Street, Prosper UK Co-Chair said: “A credible pro-growth agenda must start with the real economy, shaped by the people building it every day, and informed by a serious partnership between government and business.

“It’s clear from the businesses we spoke to in Cardiff that the current approach is not working, stifling growth, investment and innovation for Welsh employers and employees.

“For Wales to succeed the new Welsh Government – whatever colour – must pursue a positive, practical and pro-enterprise approach that backs innovation, improves support for firms seeking to scale, strengthens skills and infrastructure, reduces administrative burdens and creates a more competitive tax and investment framework for Wales.”

A copy of the report and its full set of recommendations can be found here.

Prosper UK is a new political movement founded by former Scottish Conservative leader Ruth Davidson and Andy Street, former Mayor of the West Midlands.

It aims to give a voice to those who feel “politically homeless”, bringing together people from politics, business and public life in pursuit of a centre-right alternative to the challenges facing Britain.