WhatWelsh businesses expect from the next UK government

WITH a snap General Election now called, businesses in Wales will be looking to each political party to set out its plans to support economic stability and prosperity over the next Parliament in a way that is fair and sustainable for the nations and regions of the UK.

Wales is currently experiencing low unemployment and record employment, yet continues to suffer from the lowest productivity levels in the UK. We must devise an economic strategy that unites the best ideas of the UK and Welsh governments to make a real step-change in our nation’s long-term prospects.

Whoever forms the next UK Government, it is essential to get the foundations right, from investing in infrastructure and energy to fostering a pro-enterprise tax environment.

We need a plan to build on the progress already made by ensuring Wales benefits from the best aspects of the Industrial Strategy and the Welsh Government delivers a robust devolution dividend.

Firms want the UK and Welsh governments to put aside any political differences and work together in the best interests of Wales, and want to hear all parties commit to make this a reality.

Distraction from the urgent priorities of seeking the best EU deal and improving UK productivity must be kept to a minimum. As EU negotiations now get under way, firms are clear about the serious risks of failing to secure a deal and falling into World Trade Organisation rules.

It is vital negotiators secure some early wins and all the parties should commit to working to ensure businesses can continue to trade easily with our EU neighbours while seeking new opportunities around the world.

Through discussions with Welsh companies, it is clear to me that a Brexit that works for Wales will take into account the following factors.

Firstly, the UK Government must strike an ambitious agreement with the EU that avoids new trade barriers and a ensures a smooth process without a cliff-edge. Barrier-free entry to the EU Single Market is of fundamental importance to many businesses in Wales.

Secondly, it should secure stability from day one. Business needs to know the rules and regulations they will be following the day the UK leaves the EU. Welsh businesses require certainty in order to plan and do business.

Thirdly, it should allow EU staff to stay. Firms in Wales employ thousands of people from across the EU. These valued members of staff need urgent reassurances that they will be able to stay. In the longer term, it is important that any new immigration system enables Welsh businesses to attract and retain the people they need.

Finally, it should protect the UK single market. The UK and devolved governments must work together to ensure we maintain an effective UK internal single market so that businesses throughout the UK can trade with each other without having to comply with different rules or regulations dependant on whether the business is in Wales, England, Scotland or Northern Ireland. Protecting our UK internal single market is key to sustained growth for the Welsh economy.

Equally, firms are keen that the Welsh Government continues to function as normal. There are a range of challenges – from local government reform to infrastructure renewal, tax devolution and skills provision – that cannot be delayed. Business expects the Welsh Government to not take its foot off the gas.

Whoever forms the next UK Government, they should seek to build a partnership between business and government that is the best in the world, based on trust and shared interest.

Many challenges lay ahead. We must face them together.

Ian Price is director of CBI Wales.