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Welsh economy ‘needs Marshall Plan’

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Adam Price: Three pronged ‘Marshall Plan‘ needed for post-EU Wales

Adam Price: Three pronged ‘Marshall Plan‘ needed for post-EU Wales

IN THE WAKE of the decision to leave the EU, Wales needs a Marshall Plan to rebuild the Welsh Economy, Adam Price, Local AM and Plaid Cymru’s Shadow Cabinet Minister for Finance and Economy, has said. 

Mr Price argued that Wales should not lose a penny of structural funds as the result of the decision to leave the EU.

He said a three-pronged Marshall Plan is needed to protect Wales’ economic interests.

The three-point plan would include a new UK regional policy, which would be more generous than the EU structural funds, in order to close the prosperity gap that has increased over the last 17 years.

It would also include powers over business taxes in order to give Wales a competitive advantage as we try to strengthen the economy, such as corporation tax and other powers over R&D tax credits and capital allowances.

T he Welsh Government should also maximise its infrastructure investment through not-for-profit models. This includes borrowing capacity through NICW and the Business Development Bank for Wales, and a new Investment Bank of the British Isles to replace the European Investment Bank, which Plaid Cymru believes should be based in Cardiff.

Adam Price said: “It is right that Wales should not lose a penny from the loss of structural funds from exiting the European Union. We need more economic levers and support so that we can address the financial shortfall that we face.

“Wales needs a Marshall Plan for the Welsh economy. That should include not just additional funds but also new tax powers that could give Wales a competitive advantage as we try to strengthen our economy and give it the added support it needs.

“On top of this, the Welsh Government should maximise its use of not-for-profit models of financing investment so that we can bring forward infrastructure investment to boost the economy right across Wales.

“Wales is facing unprecedented challenges to our financial situation. We need a Marshall Plan to steer us through these difficult times.”

The original Marshall Plan involved £12bn of US investment in the form of loans into western Europe after the Second World War to rebuild damaged infrastructure and economies. The term has subsequently become synonymous with large-scale state rescue plans, especially where the private sector is deemed to have failed.

 

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News

IFS report says Wales lags behind UK on economy and poverty

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THE WELSH GOVERNMENT’s key Child Poverty Strategy lacks clarity, has no reliable way of measuring success or failure, and, crucially, does not account for the Welsh Government’s lack of control over the levers needed to deliver on it.

Those are the findings of a new report by the UK’s leading economic policy research body, the Institute for Fiscal Studies (IFS), which looks at Wales’s economic performance and poor employment record.

The IFS report, published on Wednesday (April 1), shows that Wales’s economic performance is the worst of the UK nations, with the lowest employment rate, the lowest incomes, the lowest productivity, and the worst poverty levels.

POVERTY STRATEGY LACKS FOCUS

The Welsh Government launched its Child Poverty Strategy in 2018, with five broad aims to reduce child and youth poverty. However, the IFS criticises how those aims have been set out, finding that the definitions are too broad to be measured accurately and lack focus. In particular, the IFS says the strategy’s aims are so nebulous that they ignore the impact of policy areas over which the Welsh Government exercises direct control, for example, health and education, on how outcomes might be measured.

The IFS report says: “Issues with the data mean a material risk that the Welsh Government might either appear to have met a future poverty target or missed it, by a large margin, when in fact the reverse is true.”

WG NOT IN CONTROL OF OWN POVERTY STRATEGY

In any event, several of the most direct policy levers available to influence employment and earnings, including minimum wages, employment law and benefits policy, are reserved to Westminster. However, even if these policy levers were available, it would be very challenging to achieve large, rapid reductions in child poverty with them. In addition, Labour has ruled out using the tax system to generate additional income to help it meet its aims.

Wales’s highest-earning regions are along the North East Wales border with England and in the Cardiff and Newport areas. In addition, proportionately more Welsh employees are public sector workers, who are also, far and away, the best paid in Wales. The average public sector wage is around £5,000 higher than the average private sector wage. And those jobs, too, are disproportionately centred in Cardiff, Newport and North East Wales. The best-performing areas by employment rate, Monmouthshire and Newport, are within easy reach of the English border.

POVERTY CONCEALED BY LOWER PROPERTY VALUES

Compared with the rest of the UK, the gap between men’s and women’s pay is lower in Wales, as are the differences in income and in the highest and lowest property prices. However, property prices are far lower in Wales than in England, as are incomes overall; in addition, there are so few higher-rate tax earners in Wales that the Welsh Government increasing their income tax would have a negligible effect on its revenue. In addition, because Welsh housing prices are much lower than elsewhere in the UK, and because housing costs are a factor in how poverty is measured, housing costs improve one of the key poverty metrics.

 

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News

Carol Vorderman urges Welsh voters to reject Reform UK ahead of Senedd election

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TV presenter and commentator to appear at Cardiff event aimed at mobilising anti-Reform voters before May 7

CAROL VODERMAN has urged voters in Wales to reject Reform UK at next month’s Senedd election, as she prepares to appear at a live political event in Cardiff focused on keeping the party out of power.

Speaking ahead of an emergency Guilty Feminist Welsh Election Special at the New Theatre, Cardiff, on Sunday, April 12, Vorderman said Wales faced a crucial choice at the ballot box.

She said: “Wales has a chance for a new beginning in May. But Reform, the chaotic London-based, privately educated, failed Tory party, needs to be sent packing.

“Already numerous of their 96 Welsh candidates have resigned or been sacked for revolting actions. Their last Welsh Reform leader Nathan Gill is serving time in jail for accepting Russian bribes while serving in the European Parliament. Their new Welsh leader was a Tory living in London until a few months ago.

“Farage is a thin-skinned and proven liar. Everyone must come out to vote to save our country. Cymru Am Byth.”

Vorderman is due to appear alongside Guilty Feminist host Deborah Frances-White, with Welsh comedians Kiri Pritchard-McLean and Priya Hall also on the bill. Organisers say the night will mix comedy, music and political discussion, with the aim of building strategy ahead of the election.

Frances-White said polling suggested the Senedd result could be close and argued that “it really matters who ends up making decisions about our lives”, adding that the event was intended as a “get-in-the-room” night to work out how to respond.

Reform UK’s current leader in Wales is Dan Thomas, who was unveiled by Nigel Farage in Newport in February. Thomas is a former Conservative leader of Barnet Council in London, although he grew up in Blackwood.

Vorderman’s reference to Nathan Gill points to a highly embarrassing chapter in the party’s recent history. Gill, a former Reform UK politician and ex-MEP, was jailed last year after admitting taking bribes from pro-Russian figures in exchange for speeches and statements in the European Parliament.

Asked for a response to Vorderman’s remarks, a Reform UK Wales source replied briefly: “Does she even live in Wales?”

It was a short answer, but perhaps not one likely to end the argument. With the campaign heating up, and with high-profile voices now piling in from outside formal party politics, the battle for attention ahead of May 7 is only getting louder.

 

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Business

Calls for award-winning Pembrokeshire sauna to be permanent

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CALLS to allow the permanent siting of an award-winning Pembrokeshire seaside village outdoor sauna, which has been featured in the national press, have been submitted to the national park.

Back in June 2024, a temporary two-year permission for a mobile wood-fired sauna at Saundersfoot harbour was granted by Pembrokeshire Coast National Park’s development management committee.

Since then, a further application by Kerry Evans of Hwyl Outdoor Sauna to make the siting permanent has been submitted to national park planners.

A supporting statement says, since its introduction the sauna has “become a popular and valued amenity for both residents and visitors, offering a space focussed on health, wellbeing and community connection”.

It went on to say: “The overall sentiment within the village has been strongly supportive, with many residents recognising the sauna as a valuable asset that enhances the amenities in Saundersfoot,” adding: “Hwyl Outdoor Sauna has received positive attention in regional and national press helping to promote Saundersfoot as a destination for coastal wellbeing and outdoor experiences.

“Media coverage has highlighted the sauna as an example of the increasing popularity of sea swimming and sauna culture around the UK coastline.

“Hwyl Outdoor Sauna has been featured in two books on the best saunas in the UK.

“The business has also been recognised through tourism and hospitality awards, further demonstrating the quality of the experience provided and the positive contribution it makes to the local visitor offer.”

Back in February, the business, set up by former superyacht worker and mum-of-two Kerry won Sauna of the Year 2026/27 at the Wales Prestige Awards.

At the time Kerry said: “I could not be more proud of what I have achieved with Hwyl. I am so grateful to my wonderful team, who have made this journey not only possible but genuinely so much fun.”

Kerry ploughed a legacy from her beloved late father into the venture of a Pembrokeshire seafront sauna.

The application for allowing the sauna to be permanent added: “Through the Welsh Government I have been able to secure the funds to install a cold-water shower on Saundersfoot Harbour, which will be open year-round. This will be achieved via Hywel Outdoor Sauna and a weather proofing fund, from the Welsh Government. This facility has also a GoFundMe to raise the remaining costs.”

It concludes: “Hwyl Outdoor Sauna has established itself as a valued wellbeing facility that benefits both residents and visitors. It enhances the amenities available in Saundersfoot, supports the local economy by encouraging additional visitor activity, and contributes positively to the community through charitable support and engagement.

“The permanent siting of the sauna would allow this successful local small business to continue operating and provide these benefits to the village in a stable and sustainable way.”

The application for a permanent facility will be considered by park planners at a later date.

 

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