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Prosperity for All: Economic Action Plan Foreword

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Prosperity for All: Economic Action Plan Foreword Prosperity for All: economic action plan Foreword In pursuing prosperity for all, We are immensely proud of the role Recently we published Prosperity we intend building an economy on the Welsh Government has played for All, a new national strategy strong foundations, to supercharge in strengthening the economy. to map out how we can - our industries of the future and Since 2011, Welsh Government working across traditional silos empower all our regions to become funding has helped support more of government – turn those more productive. than 185,000 jobs across Wales, challenges into new opportunities. assisted 17,000 young people This Economic Action Plan sets out And we wish to see growth with a into work during the teeth of the how we can pool the resources, purpose - inclusive growth - so that global recession and pushed expertise and knowledge we as our wealth and well-being unemployment to its lowest level in have in Wales to strengthen our improve, inequalities across our modern times. economic foundations and future- country narrow. proof the Welsh economy. But huge structural challenges Wales is home to some of the most remain: deindustrialisation, This Plan is grounded on the innovative, dynamic and exciting economic inactivity, unstable and principle that places matter and economic activity anywhere in insecure employment, productivity seeks to make real our ambition the world from the world-class that lags behind the rest of the UK, of delivering better jobs closer to centres of aerospace engineering accelerating technological change, home. It sets out our aspiration and nuclear energy in the north; slow diffusion of innovation, costly to ensure the fruits of growth are cutting-edge metallics innovation, sickness and in-work illness rates felt fairly across all parts of Wales. marine technology and automotive and the challenge of an ageing It also provides an ambitious basis production in the south; to award- population. for regional economic development. winning food producers in rural There are external challenges too. It ensures the different players in Wales. Our economy is a base for Exiting the EU will fundamentally our economy - from the emerging scores of internationally recognised alter the shape of our trading City Deals and local government firms and entrepreneurs doing relationship with the rest of reform structures, to the new things with skill, precision and the world. The transition to a Development Bank of Wales and quality that is of a world standard. low-carbon global economy is Regional Skills Partnerships – Supported by some of the UK’s underway and we need to take work together on a clear footprint best colleges and high-quality advantage of this opportunity to with businesses and other universities doing ground breaking increase our competitiveness, partners in a new, strategic and R&D, we know that there are whilst also building resilience to the more collaborative partnership huge strengths to our economy. impacts of climate change. Meeting to support distinctive regional Supporting a competitive Welsh those challenges and turning them strengths. economy and a competitive into new and exciting opportunities To drive wider impacts from environment for businesses to for inclusive, fair and sustainable our interventions, we are expand helps to create jobs, economic growth is the defining proposing a new Economic fund vital services and provide a political and economic challenge Contract between business, future for our young people. of our age. 2i | |Prosperity Fair Movement for All: economicof People action plan government and partners in as care, tourism, food, and retail well-being rise together, leading Wales. A ‘something for something’ are the backbones of many to Wales being internationally approach that increases the local economies. By developing recognised as a great place in availability of fair - and rewarding new models of support and which to grow up and to grow old; - work, which creates more and partnerships in these areas, and which has dynamic industries better jobs closer to home, we can help small and often soaring from strong foundations. that meets our decarbonisation fragile enterprises embedded in This is a Plan to deliver prosperity ambitions and which also ensures local communities increase their for all by encouraging participation businesses are optimising the productivity, encourage skills for all. To tackle the structural potential of new and emerging progression and develop more challenges we face and to turn technologies. sustainable business models. All of threats into opportunities we call this means challenging ourselves in The Plan also sets out a new on all who have an interest in our government too. approach to supporting key future prosperity to be partners of strategic areas of the economy. the Welsh Government. We have already begun to develop Since 2009, our approach stronger regional partnerships as has been to support individual well as re-shaping the advisory sectors, many of which like structures and business funding Ken Skates AM creative industries and advanced Cabinet Secretary for support processes to make manufacturing, have become Economy and Transport them simpler to understand huge success stories. However, and more focused on delivering forces such as decarbonisation, on our shared goals. It also automation, artificial intelligence means government stepping up and other forms of digitalisation to the plate and taking a lead are already transforming industries in areas like decarbonisation and individual firms, breaking and demonstrating our intent to down the traditional boundaries create more sustainable economic between different sectors of the infrastructure. economy. The opportunities of the data revolution, for example, The challenges of the coming are increasingly driving new decade are significant but our size collaborations across sectors. and scale give us the opportunity This Plan sets out to re-cast our to be smart and to work together support in a way that can help in turning them into new economic build the industries of the future. opportunities. An important additional element of This Plan has principles and our approach will be in supporting purpose at its heart: to deliver an new foundation sectors of the economy in which the spirit levels economy because sectors such beneath both our wealth and Prosperity for All: economic action plan | ii Contents Introduction 1 Support people and businesses to drive prosperity 9 Tackle regional inequality and promote fair work 21 Drive sustainable growth and combat climate change 25 Build ambition and encourage learning for life 30 Equip everyone with the right skills for a changing world 33 Deliver modern and connected infrastructure 36 Promote and protect Wales’ place in the world 41 Next steps 44 Mae’r ddogfen yma hefyd ar gael yn Gymraeg. This document is also available in Welsh. © Crown copyright 2017 4 | : the Economic Action Plan WG33388 Print ISBN 978-1-78903-086-0 Digital ISBN 978-1-78903-085-3 Introduction Inclusive Growth Understanding the nature of the devolution Gross Disposable economic strengths and challenges Household Income per person has Growing our economy inclusively, we face helps us to frame our increased at a faster rate in Wales spreading opportunity response. The actions we will take than the UK average and in terms and promoting well-being are at aim to ensure that we address of average household wealth Wales the heart of this Plan, underpinning the issues of today and provide is ahead of most parts of the UK its contribution toward delivery of strong foundations for the future, and behind only the south east and our National Strategy: Prosperity a positive legacy built on a set of south west of England. for All. clear principles. Despite these positive Our role as a government is to developments, challenges of support an economy that increases Economic Context course remain – with growth both our wealth and our well-being scarred by an underlying individual The Welsh economy today has through inclusive growth, by which and spatial inequality, significant the right foundations upon which we mean a fairer distribution of uncertainty and global pressures to build. Our labour market the benefits of economic growth like never before. both at an individual level and performance today is strong between different parts of Wales. relative to our history – more The process of exiting the We want a strong, resilient people in work than ever before, a European Union will frame the and diverse economy that delivers lower rate of unemployment than context against which we will for the people of Wales - enabling the UK average and falling rates implement this Plan and consider individuals to realise their of inactivity. We have a record the wider opportunities and ambitions, businesses to prosper number of active businesses in challenges we face. How the UK and communities to thrive. Wales and the number of new with its constituent nations and business births is the highest for regions can retain unfettered We regard growth and fairness over a decade. access to European markets and as mutually reinforcing, not improve trading relations with other Our exports and levels of Foreign mutually exclusive. We pursue parts of the world is perhaps the Direct Investment (FDI) continue growth because it can promote defining question of our times. to impress – even set against the fairness and we should strive for It will be vital in determining our damaging backdrop of the threat a fairer Wales, because doing so longer-term economic success. of a ‘no deal’ European Union exit. will improve our growth potential. Our export performance and levels The challenges and opportunities There is an economic as well as of FDI demonstrate how much facing the Welsh economy are moral imperative to the pursuit of confidence the world has in the complex and overlapping but they inclusive growth. Evidence tells us quality of Welsh business, products fall within three broad categories: that inequalities reduce prospects and services and how much they for growth - affecting the likelihood 1.
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