Business

Rural operators ‘petrified’ by bus reforms

Published

1 month ago

May 18, 2025

RURAL bus operators are petrified by the Welsh Government’s plans to introduce a London-style bus network in Wales, the industry warned.

Scott Pearson, chair of the Coach and Bus Association Cymru, gave evidence on the bus bill which seeks to bring buses into public control, with operators bidding for contracts.

Mr Pearson, who has been running bus services for 25 years, cautioned against a regional approach or modelling reforms on other franchise systems such as Greater Manchester’s.

“That’s a massive population in a big urban area,” he told the Senedd’s infrastructure committee. “Wales is not like that: you’ve got three big cities in the bottom, one at the top and, in between, a whole load of hills and mountains.

“The rural aspect to this, our members – the SME [small- and medium-sized enterprise] membership – are petrified about this bill.”

Expressing concerns about smaller operators being squeezed out, Mr Pearson told the meeting on May 15: “‘Petrified’ is the right word to use because we don’t have detail.”

Aaron Hill, director of the Confederation of Passenger Transport Cymru, agreed: “Scott is right, buses are inherently a very local service and respond to very local needs. We would be missing a trick if local authorities didn’t have a bigger role in how we shape the network.”

Mr Hill warned of significant barriers for SMEs, with six-figure costs in some parts of the UK to bid for franchises and regulatory hurdles to clear to even take part in the procurement.

“We need, if we’re going to do it successfully in Wales, to overcome that,” he said.

Mr Pearson stressed: “If you hand a guy who’s got ten buses a 150-page document for the franchise and say ‘do you want this?’… they’re not going to do it, they’re going to sell up.”

Mr Hill cautioned a change in the regulatory model will not guarantee success, warning the bill does little to take buses out of traffic, coordinate roadworks nor speed up journey times.

He said: “The bill doesn’t actually change the economics of running bus services in Wales – so many of the challenges that the network faces today, the network will still face on the other side of re-regulation.”

Raising examples of other franchised networks, Mr Hill said London has historically had a gap of around £700m between the cost of the service and the income generated.

He said the gap in Greater Manchester, which took control of buses in 2023, is about £250m and the Welsh bill exposes the network to similar affordability challenges.

Mr Hill told Senedd Members: “We think the bill only lends itself to one type of franchise, a gross-cost franchise – that is the franchise that carries the most risk for taxpayers.”

Mr Pearson warned the public purse will shoulder all the risk under the bill as drafted.

Mr Hill warned a regulatory impact assessment (RIA) published alongside the bill was insufficient, with “at least” £200m of additional costs not factored in.

“That feels to me to be a significant question that hangs over the viability of franchising,” he said, pointing to examples including national insurance tax hikes and staff costs.

In written evidence, the Confederation of Passenger Transport Cymru warned: “We are concerned that the assessment of the financial implications are overly optimistic and based on weak assumptions and unrealistic forecasts.”

Mr Pearson similarly criticised a lack of detail in the bill and impact assessment, making it difficult to understand the costs and challenges.

He said: “If we’re trying to do the same with the current funding, and adding a whole load of costs into it from TfW [Transport for Wales], for instance, it’s just simply not going to work because you can’t get more for less.”

Mr Pearson added: “It talks about patronage increase in the RIA – that’s a big, big faux pas because nothing in this bill… looks at the main cause… which is congestion.

“It’s not dealt with at all. I think we’ve got a once-in-a-lifetime opportunity here and we’re not… addressing the main problems that we currently face as operators.”

Mr Hill added: “There’s a real risk here: we’ve built up public expectation, in the same way… as with the railways, then delivery or significant improvement doesn’t follow for a long time.”

Asked about the scope of the bill, with councils rather than ministers remaining responsible for school transport, Mr Pearson questioned the logic of separating the two.

He raised the example of a rural operator, which provides bus services and school transport, missing out on a franchise, asking: “What happens to the home to school, the local authority picks it up? That’s a whole… different ball game… I don’t think that is going to work well.”

Business

New offshore wind action plan promises major boost for west Wales economy

Published

15 hours ago

June 24, 2025

Tom Sinclair

Welsh Government aims to unlock £4.8bn opportunity for local businesses and ports

A NEW action plan from the Welsh Government aims to turn Wales’ offshore wind potential into a major economic driver — with significant benefits expected for Pembrokeshire.

The Offshore Wind Task and Finish Group Action Plan, published on Tuesday (May 24), outlines how more than 15GW of offshore wind power could be harnessed from Welsh waters — with floating wind in the Celtic Sea at the heart of the proposals.

The plan follows the recent announcement that two companies have been awarded rights to develop 3GW of floating wind farms in the Celtic Sea. The Crown Estate has also confirmed a third site will be leased, bringing the total capacity to 4.5GW.

This area lies directly off the Pembrokeshire coast, and local infrastructure — particularly the port at Milford Haven — is expected to play a key role in the rollout.

The plan includes a dedicated Welsh Ports Prospectus to highlight investment opportunities and attract large engineering contractors to anchor supply chain activity locally. With proper support, Milford Haven and Port Talbot are seen as crucial sites for manufacturing, assembly, and servicing.

Ajai Ahluwalia, Head of Supply Chain for RenewableUK, said: “Over the next decade alone, £32 billion in economic value is at stake, including a £4.8 billion opportunity for Welsh businesses and more than 3,000 skilled jobs.

“To unlock that value, we must now move swiftly from planning to delivery — and industry stands ready to work with government to make it happen.”

The action plan also calls for stronger planning frameworks, long-term leasing visibility, and a dedicated Welsh Government team to oversee delivery.

Pembrokeshire Council has previously supported renewable energy expansion at Pembroke Dock and Milford Haven, and local leaders are expected to press for further investment in skills and infrastructure to ensure the county shares fully in the benefits of the green energy transition.

Business

Mind the gap: Welsh employers and Gen Z out of sync on skills

Published

1 day ago

June 24, 2025

Tom Sinclair

New report reveals Wales has the UK’s highest skills shortage – but young people are ready to step up

A MAJOR new report by The Open University has revealed a growing disconnect between Welsh employers and the next generation of workers, potentially undermining efforts to tackle the country’s persistent skills shortages.

The Business Barometer 2025: Skills for today and tomorrow surveyed over 2,000 business leaders and 1,000 Gen Z adults across the UK — including 139 employers and 80 young people under 25 in Wales. It found that 58% of Welsh organisations are currently experiencing a skills shortage — the highest of all UK nations.

Yet despite this, only 31% of those employers have specific initiatives in place to recruit, retain or train under-25s.

Gen Z ready to respond — but need support

Encouragingly, over half (54%) of young people surveyed in Wales are aware of the national skills gap and are actively considering it in their career planning:

73% are choosing careers based on areas of high demand
66% say they would stay longer with employers who offer training and development

However, the report suggests that this willingness is not being met with sufficient guidance or opportunity — especially in fast-growing areas such as artificial intelligence (AI), digital, and green skills.

While 58% of Welsh Gen Z respondents say they are interested or already working in AI, one in five Welsh employers report lacking confidence in their ability to deliver AI strategies due to talent shortages.

Call for action on training and inclusion

Dr Scott McKenzie, Assistant Director for Learning, Skills and Innovation at The Open University in Wales, said: “The data is clear: there’s a mismatch between employer intentions and practical action. But there’s also a real opportunity. Welsh organisations can bridge the gap by developing structured skills plans, investing in flexible learning, and opening pathways to a more diverse talent pool. Those who act now will be the ones best placed to thrive in the future.”

Baroness Martha Lane Fox CBE, Chancellor of The Open University, added: “Young people are motivated, digitally savvy and want to contribute. Employers must meet that energy with training pathways and real opportunities. Waiting for skills to arrive is no longer enough — smart organisations will build them proactively.”

Diversity still lagging behind

While 80% of Welsh employers say equality, diversity and inclusion (ED&I) is important to their organisation, 25% admit to having no initiatives in place for underrepresented groups such as returners, career changers, or people with disabilities and neurodivergences.

This is seen as a missed opportunity to reduce economic inactivity and broaden the talent pipeline — especially in sectors where workforce shortages are most acute.

Skills shortage set to worsen

The Business Barometer, now in its ninth year, shows the issue is far from easing. In Wales:

38% of employers expect the skills gap to worsen over the next five years
60% say shortages are increasing workloads on existing staff
43% report reduced productivity
37% have scaled back growth plans
20% fear they won’t be able to meet their AI ambitions by 2030

Yet, despite these pressures, only 36% of Welsh employers have a formal skills plan in place. And while training is proven to aid staff retention, 30% say they hesitate to invest in staff development for fear employees will leave.

Full report and recommendations available at: https://business.open.ac.uk/business-barometer

Business

Senedd election candidates challenged to double apprenticeship funding

Published

1 day ago

June 24, 2025

Tom Sinclair

AN ORGANISATION representing training providers across Wales is calling on allpolitical parties and2026 Senedd election candidates to commit to doubling investment in apprenticeships to support 200,000 apprentices over the next Senedd term.

Launched today (June 24), the National Training Federation for Wales (NTFW) ‘Manifesto for Apprenticeships: Building a Skills First Economy for Wales’ seeks to “build a Wales that thrives on skills, opportunity and ambition for everyone.”

According to the Centre for Economics and Business Research, doubling the investment in apprenticeships over the next Senedd term could generate an extra £3.4 billion in additional lifetime earnings for people in Wales over the next 30 years.

“Apprenticeships are not just a pathway to employment; they are the backbone of a prosperous Welsh economy, equipping people across all backgrounds with hands-on skills tailored to the needs of our industries,” says the NTFW manifesto.

“Investing in apprenticeships is an investment in people and in the future of Wales. With fair funding, inclusive access and strong partnerships, apprenticeships can help power a more equal, skilled and resilient nation.

“NTFW urges all Senedd candidates and political parties to commit to this vision. Let’s build a Wales that thrives on skills, opportunity and ambition for everyone.”

Collaboration is a key word throughout the manifesto, as the NTFW seeks to work in partnership with the Welsh Government, Medr, training providers, employers, learners, the Federation of Small Businesses (FSB), Confederation of British Industry (CBI) and the Coleg Cymraeg Cenedlaethol.

“By collaborating closely with Medr, we can ensure apprenticeship programmes are responsive, innovative and aligned with emerging industry needs,” states the manifesto.

“By working together, we can shape apprenticeship programmes that directly address skills gaps, boost productivity and support economic diversification.”

The NTFW commits to providing equal access to qualifications delivered through the medium of Welsh or bilingually and calls on the next Welsh Government to prioritise mental health and wellbeing support services for apprentices.

The manifesto calls on the next Welsh Government to restore money cut from the apprenticeship budget last year and tointroduce long-term, sustainable funding that offers equity with other forms of post-16 education.

It says apprenticeships must be placed at the heart of government policy and calls for a vocational skills strategy, developed in partnership with providers, to determine what is needed to maximise opportunities.

The manifesto also calls for:

a skills system that speaks to the aspirations of a Welsh economy.
people of all ages and backgrounds to be able to retrain or upskill through apprenticeships, driving social mobility and inclusive growth.
increased funding for apprenticeships in growing sectors, such as green energy, digital innovation and healthcare, to future-proof Wales’s workforce.
Apprenticeship opportunities in every part of Wales to support local economies, reduce inequalities and empower communities.

Speakers at the launch, held at St. David’s Hotel, Cardiff Bay, were NTFW chair John Nash, strategic director Lisa Mytton, FSB Head of Wales, Ben Cottam, Coleg Cymraeg Cenedlaethol chief executive, Ioan Matthews, and Cavendish Cymru director Nerys Evans.

Lisa Mytton, NTFW strategic director, said: “We have launched this manifesto to set out what we expect an incoming Welsh Government to prioritise in their policies and skills strategy to boost the economy of Wales.

“Our mandate to the next government is to ensure that increased investment is available for apprenticeships. We are seeking that commitment from all candidates running for the next Senedd election.”

John Nash, chairman of NTFW, added: “This is an unprecedented moment. We have created an ambitious Manifesto for Apprenticeships that should be essential reading for every Senedd candidate.

“We are seeking a commitment from all political parties that apprenticeships will be at the heart of future Wesh Government policies to grow a prosperous and resilient Welsh economy with a highly skilled workforce.”

Picture caption:

NTFW wants investment in apprenticeships to double to support 200,000 apprentices over the next Senedd term.