Deloitte report shows health, skills, and connectivity seen as key to future growth

A NEW report has revealed that people in Wales want the government to prioritise the NHS, tackle the cost of living, and invest in infrastructure to drive economic growth.

The State of the State 2025, published by Deloitte in partnership with the think tank Reform, captures public and public sector views on priorities and challenges facing the UK. In Wales, the survey found that for the third year running, the top two public concerns remain the NHS and the cost of living crisis – both cited by 75% of respondents. Social care for the elderly and vulnerable followed at 48%.

Jobs and the economy (47%) and affordable housing (43%) were also high on the list of areas the Welsh public want to see improved. Infrastructure – including roads, railways and broadband – rose notably in concern, with 42% identifying it as a priority, up six percentage points from last year.

When asked about what would most effectively drive future economic growth in Wales, respondents pointed to three key areas: improving national health (45%), boosting education and skills (44%), and investing in transport and connectivity infrastructure (39%).

Despite these priorities, the report found widespread pessimism about progress. Three-quarters of respondents said they expect the NHS to either worsen or remain the same, while 74% felt the same about infrastructure.

Public sector leaders interviewed for the report agreed that infrastructure investment will be vital for future growth. Council chief executives noted that transport developments in Wales had benefited from a clear vision and strong partnerships, though concerns remain about consistency and funding.

A lack of funding was identified by 66% of respondents as the biggest challenge facing public services in the years ahead. More than half (55%) also highlighted a loss of trust in those services as a major concern.

While trust in the Welsh Government remains higher than in Westminster, Holyrood or Stormont, 63% of respondents said they had low confidence in its ability to deliver major projects on time and on budget. A similar number (61%) doubted it could deliver the outcomes the public want.

The public was divided over the future of public spending. While 31% supported higher taxes and more spending, 37% preferred lower taxes and reduced spending. However, nearly half (47%) expected higher taxes and spending regardless of preference.

Deloitte’s interviews with senior public sector leaders in Wales also revealed long-term ambitions, including using technology to create frictionless services, promoting integrated transport, and embedding commercial thinking into government decision-making.

Dave Tansley, Deloitte’s senior partner for the South West and Wales, said: “The State of the State 2025 report shows the Welsh public remain concerned about the cost of living and the NHS. But our survey also found heightened interest in the state of infrastructure compared to other parts of the UK, indicating the public recognises the need for connectivity as fundamental to Wales’s economic success.”

“Investing in infrastructure has direct benefits for jobs, housing, roads, and rail – and it’s what enables a more resilient economy in the long term.”

“With the 2026 Senedd election on the horizon, the challenge for the next administration will be balancing investment with constrained budgets.”

Ian Howse, senior partner for Wales at Deloitte, added: “Public sector leaders told us they want bold reform to create services that are more joined-up, more citizen-focused, and better at using technology.”

“Our research shows there is a growing need for a long-term vision – one that sets out what the Welsh government and its services can truly deliver for the people of Wales.”

“There’s a clear sense of urgency in government circles, and that may be a positive sign of momentum as the next election approaches.”