MANAGED DECLINE OR PROSPERITY?

Plaid Cymru Shadow Economy Minister Rhun ap Iorwerth has vowed today that a Plaid Cymru government would write Wales's economic success story by implementing a detailed National Economic Plan unrivalled by any other party in this election. Rhun ap Iorwerth said that the Party of Wales's medium-term objective was to close the economic gap between Wales and the rest of the UK, by focusing on upskilling the workforce, creating well-paid jobs and stimulating economic growth.

Shadow Economy Minister Rhun ap Iorwerth said:

"Plaid Cymru recognises that Wales needs a strong and resilient economy in order to support our vital public services.

"To achieve this, our National Economic Plan will focus on raising skill levels, implementing an active industrial strategy and bringing forward a comprehensive plan for infrastructure investment.

"By creating 50,000 new apprenticeships, boosting innovation throughout Wales and doubling the Welsh R&D budget through our National Innovation body we will create more high-skilled, well-paid jobs.

"Plaid Cymru's National Infrastructure Commission - NICW - will be the largest infrastructure investment project since devolution, designed to transform Wales's roads, railways, schools, hospitals and homes.

"Our Wales Development Agency will help home-grown businesses succeed and boost exports, and will attract investment from around the world, reviving the globally-recognised Welsh brand.

"The Party of Wales's economic vision is unrivalled in its ambition and scope. If we are to close the economic gap between Wales and the rest of the UK it is vital that we inject new vigour into the Welsh economy.

"While Labour and the Tories are content to use our nation's poverty as a tool for political point-scoring, Plaid Cymru refuses to accept that this is as good as it gets for Wales."

GROWING OUR SMALL BUSINESSES

A Plaid Cymru government will involve the private sector and its representative bodies in providing business support and advice aimed at small businesses (less than 10 employees) by strengthening the current Business Wales network. Plaid Cymru will also pass a Regulatory Reform Act to lower the bureaucratic burden on business.

Plaid will increase business rate relief so that more than 70,000 small and medium companies will pay no business rates at all. Any firm with a rateable value of less than £10,000 per year will pay no business rates and a Plaid government will introduce a tapered relief for another 20,000 firms whose rateable value is between £10,000 and £20,000. In order to enourage new startups Plaid will not charge any business rates due for the first year of operation.

The Party of Wales will review business rates every three years, so that they are kept up-to-date, and investigate the impact of premises investment so that businesses are not penalised for improvements that they make. We will subject small and large businesses to different multipliers as is the case in Scotland and England and will index rates to CPI not RPI.

Additionally targeted business rate reliefs will be offered for larger companies that agree to meet certain criteria on corporate social responsibility – including opportunities for local suppliers, the Welsh Living Wage, the minimisation of waste and the use of renewable energy. Businesses of all sizes that meet the criteria will be entitled to display a kitemark as responsible Welsh businesses.

Plaid Cymru in government will act immediately to set up a new fund to enable local authorities and community groups to offer two hours free car parking in towns throughout Wales, providing a vital boost to town centre regeneration across all of Wales. 

We will support social innovation, social enterprise, employee and consumer co-ops. We will establish a co-operative challenge fund to provide financial support for feasibility and market studies and early stage finance for groups exploring the option of establishing cooperatives. Plaid Cymru will support the establishment of a social business school to develop the skills of social entrepreneurs, and a social innovation park to incubate new ideas.

THE BUDGET

No matter how they would like to spin it the Con Dem's have made a very basic and bad decision budget wise, they should have concentrated on growth rather than cuts in their first Budget last year. This publicly announced (in not trumpeted) “austerity” budget rather than a “growth” budget is simply bad economics.

The UK coalition has got it's financial policy fundamentally back to front and cuts in capital investment, not to mention the snatching £385 million away from the Welsh Government's funds, has left Wales in a weak position especially when it comes to securing economic recovery.

Here in Wales, things could be quite different, Plaid have already launched their proposal for a “Build for Wales” investment vehicle which would ensure capital investment in new schools, new hospitals and new roads while creating up to 50,000 jobs here in Wales.

Jonathan Edwards MP

Plaid Cymru’s Treasury spokesman, Jonathan Edwards MP, said:

“The Office for Budget Responsibility is set to lower growth expectations in the UK in this Budget, while figures from the Office of National Statistics show higher than expected UK government borrowing.


“This is the scenario we set out a year ago - that cutting too much and too early would lead to the situation where the tax-take falls, and more people are out of work and claiming benefits after losing their jobs.


“The UK Government should have pushed for growth in the economy first and secured the recovery, before making massive cuts to public sector jobs and investment.


“Quite simply, they got it the wrong way around.


“Capital investment, in new schools, new hospitals and new roads, is key to making our economy work in Wales, by creating jobs for our construction industry and developing vital infrastructure.


“On top of that, the Treasury has mugged Wales by taking back £385m End Year Flexibility that we were keeping to use for just this purpose.


“Clearly Plaid is the only party interested in a better future and a credible economic plan for Wales. Plaid’s Build for Wales investment vehicle, for example would allow us to raise money to counter the cuts and to create up to 50,000 jobs.”