Skip to main content

THE WELSH CONSERVATIVE LEADERSHIP CONTEST

Over the next few months, the three main parties in the National Assembly for Wales will be holding contests to elect new leaders for their groups.

First up will be the Welsh Conservatives, who will be choosing between Paul Davies, the AM for Preseli Pembrokeshire, and Suzy Davies, regional AM for South Wales West with a decision due on the 6th of September.

Given that the Welsh Conservatives are the second largest party in the National Assembly and the official opposition, their new leader will be taking the lead in scrutinising the Welsh Government in how they are running the economy and supporting the business community.

So what are some of the highlights for business from each of candidates’ manifestos?

Not surprisingly, both are in favour of a low tax economy with Paul Davies suggesting that with additional powers being devolved there should be a debate to cut taxation in wales, arguing that this would increase efficiency in the Welsh economy, be more attractive to successful investors and job creators and generate greater revenue and more money to invest in public services. This is, of course, in keeping with the UK Conservative Government’s raising of the personal allowance which has taken thousands of the lowest paid  workers in Wales out of tax altogether.

More interesting is the proposal from Suzy Davies who, whilst championing lower taxes, believes that local authorities should be allowed to keep some of the business rates they collect in exchange for developing local economic development strategies, led by the private sector, which are more attuned to the needs of the local community.

Paul Davies also specifically points out to having greater intervention to support high street businesses in Wales, many of which have struggled following the Welsh Government’s business rates revaluation last year.  In particular, he believes there is  need to examine innovative ways to redesign the business rates regime so it is fairer to small businesses and thus halting the decline of the Welsh high street.

Whilst neither candidate suggests that the Welsh Development Agency should be resurrected, Suzy Davies does propose that the overseas model of chambers of trade - which are driven by the private sector and are more powerful than equivalent bodies here in the UK – could be adopted in Wales, especially if the private sector are not being fully engaged within the existing city and growth deals.

In fact, she suggests that if the city deals these do not work properly, then there may be a case for a separate industry led body to drive forward development and investment in Wales.

In terms of education, Paul Davies believes that having the confidence to take the plunge and set up your own business is key. As a result,  Wales must have an education system that instils that confidence and ensures more young people leave full time education with the skills most highly valued by employers.

Similarly, Suzy Davies believes that although “entrepreneurship” appears on the school curriculum in various guises, it tends to be about “ticking boxes” rather than  ensuring a mainstream philosophy about creativity and the application of ideas. She suggests that basic business skills should to be taught as part of every vocational “college” subject and that there should be  basic application/innovation questions in every science and maths class.

An interesting debate which Suzy Davies believes we have generally shied away from in Wales in recent years is how to involve the private sector in helping to shape the Welsh economy.

This is not only from what government should be doing through its own policy levers but how to get the business community to understand that they are part of a bigger picture with socio-economic consequences and that there’s a responsibility to participate - not just for “the greater good” but because there’s direct economic advantage for them. For example, business owners should help schools by being on the board of governors, giving work experience to children and even helping to design and deliver the curriculum.

Perhaps the most interesting difference between the two candidates’ approach to economic development is their overall political philosophy to the economy.

Whilst Paul Davies has pledged to pursue “an unashamedly pro-business agenda” to generate greater investment, encourage entrepreneurship and business start-ups, Suzy Davies has adopted a more nuanced approach by talking about rebalancing the state and private sector, giving private sector a real stake in the communities in which they develop and their employees an emotional stake in their employers’ activities.  She also proposes that women could, and should, play a greater role in leading businesses and organisations in Wales.

Therefore, there are some sensible ideas on how to develop the Welsh economy and I am sure not many business people will disagree with these different proposals that have been put forward by both candidates.

More important, though, is the fact that whoever wins will face the challenge, as leader of the opposition, of holding the Welsh Government to account for the Welsh economy going forward whilst, at the same time, developing their own distinct economic policy direction for the Welsh Conservatives. The individual who can do that best over the next few years should win this contest and I do not envy members in making such a choice between two excellent and highly regarded candidates.







Popular posts from this blog

THE CRACHACH

Unlike me, do you consider yourself part of 'the establishment' here in Wales?  As thousands gather for the Eisteddfod in Mold this morning, they will, according to some social commentators, not be participating in the greatest cultural festivals of Europe. Instead, they will merely be bit-part players in one of the annual gatherings of the great and good of Wales.  Unkindly, this set of the movers and shakers in Welsh society is known as 'the crachach' , and constitute a social class all of their own, dominating the educational, cultural and media sectors of Wales and allegedly looking down upon any outsider with new ideas, reinforcing mediocrity and failing to see beyond the limits of their own narrow experience.  They are said to live in a comfort zone that awaits the expected invitation to the next glass of chilled chardonnay and canapés, forgetting that due to their lack of leadership and drive, Wales remains firmly rooted to the bottom of the UK prosperity league ...

THE IMPORTANCE OF THE CREATIVE CLASSES

One of my favourite academic books of the last two decades must be the “Rise of the Creative Classes” by Professor Richard Florida.  This was one of the first detailed studies of the growing group of individuals who use their creativity and mental labour to earn a living and not only included those in arts and entertainment, but also people working in science and technology as well as knowledge-based professions such as healthcare, law, business, and finance.  Fast forward to 2022 and Professor Florida has written an updated report on the creative classes although he and his team now identify a different type of individual who is taking full advantage of the growth in digital platforms, social media, and online marketplaces.  Such ‘creators’ are defined as those who use digital technology to make and publish unique creative content, whether in the form of video, film, art, music, design, text, games, or any other media that audiences can access and respond to.  They ...

THE IMPORTANCE OF FRANCHISING

When we talk about start-ups and entrepreneurship, rarely do we discuss the potential of franchising not only as a way of establishing new ventures in the economy but also as a method of growing existing businesses. According to the British Franchising Association, franchising is the granting of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to own and operate their own business under the brand, systems and proven business model of the franchisor. The franchisee also receives initial training and ongoing support, comprising all the elements necessary to establish a previously untrained person in the business. This enables individuals to start their own businesses without having to develop their own ideas and utilising an existing brand and established market. Of course, whilst each franchise business is owned and operated by the franchisee, the franchisor controls the quality and standards of the way in which the business is...