Welsh Conservatives launch attack on Wales’ ‘broken’ economy ahead of debate

Hayley Jones

The Welsh Conservatives have launched a scathing attack on the Welsh Government’s economic record, accusing Labour and Plaid Cymru of presiding over a “broken” economy.

Ahead of a Senedd debate on tax cuts and business support measures this week,  the Tories say after almost three decades of Labour-led government in Cardiff Bay, Wales is lagging behind the rest of the UK.

The debate, scheduled for Wednesday, will focus on a series of measures the Conservatives say could help boost economic activity.

Among them are a 1p cut to the basic rate of Welsh income tax, the scrapping of business rates for small firms, pubs and post offices, and the abolition of the land transaction tax on primary residences.

The party is also calling for the proposed tourism tax to be scrapped and for local authorities to hold referendums before council tax rises above 5 per cent.

Conservative shadow economy secretary Samuel Kurtz said the Welsh Government’s approach was failing both working people and businesses.

Mr Kurtz said: “It’s clear that only the Welsh Conservatives have a credible costed plan to cut taxes and lift unnecessary burdens from our drivers of economic growth: hardworking people and businesses.”

Kurtz said that employment levels in Wales remain the lowest in the UK, economic inactivity is the highest, and average pay is lower than elsewhere in Britain.

The motion will also reference the latest UK Government economic forecasts, which the Conservatives say show downgraded growth and rising unemployment.

‘Shifting blame’

In response, Plaid Cymru’s Luke Fletcher MS, the party’s spokesperson for Economy and Energy, said: “The Conservatives have no leg to stand on when it comes to shifting blame for the state of the economy.

“Whether it’s the harm caused by Liz Truss’ catastrophic mini-budget, their botched Brexit deal costing Wales billions, or their cruel austerity agenda decimating public services and widening inequalities: no one is looking to the Tories for sound economic policies, and especially not from their uncosted manifesto”

Mr Fletcher added that Plaid Cymru has its own comprehensive strategy. He said: “Making Wales Work,” which includes creating a National Development Agency to support businesses, aligning workforce skills with future economic needs, and reforming the business rates system to support local high streets.

Productivity

The Welsh Government said: “Wales’ productivity has grown faster than the UK average, underlining the strength and contribution of the Welsh economy.

“We’re supporting businesses with £116m in transitional relief over the next two years and a new system of multipliers which are substantially lower for all ratepayers than the current single multiplier.

“We also recently committed £8m to provide additional rates relief for food and drink hospitality properties, reducing bills for around 4,400 hospitality businesses.

Because of our permanent relief schemes, almost half of all businesses benefit from full rates relief and pay no business rates at all.

“The visitor levy is a small contribution that could make a big difference if councils choose to introduce it in their local areas. We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience. Visitor levies are common around the world, benefiting local communities, tourists and businesses – and we want the same for Wales.”