Columnist Dylan Jones Evans argues that Plaid Cymru is trying to address the right questions. But that does not mean the party’s plan will work
So, to the final assessment of the political parties’ plans for the Welsh economy, and it would be fair to say that Plaid Cymru’s manifesto is the most detailed document produced in this Senedd election.
That does not mean that every proposal within it is convincing, but it is attempting to build a recognisable economic philosophy around a simple question that Welsh politics has avoided: not just how much economic activity takes place in Wales, but who benefits from it, and how much of the value generated here actually stays here.
Plaid argues that Wales has plenty of economic capability, but that too much of its economy remains externally owned, too much profit leaks out, and too much of its policy focuses on managing symptoms rather than building long-term strength. Its answer is a more interventionist and more explicitly development-oriented model, built around more strategic public investment, more active use of procurement, and an institutional framework designed to support business growth in ways that reinforce Welsh communities rather than bypass them.
Read Dylan’s assessments of the Tory manifesto, the Labour manifesto and the Lib Dem and Green manifestos
At the centre of this sits the proposal for a new business-led National Development Agency for Wales that can provide a clearer front door for business support, promote Wales internationally, and coordinate regional economic development in a way that Whitehall-style departmentalism and Cardiff Bay fragmentation have often failed to do. In this respect, Plaid is right to recognise that economic development in Wales has too often lacked institutional clarity and sustained focus, although any new body should not be just another rehash of the Welsh Development Agency, as some have suggested.
Plaid is also right to signal that the Development Bank of Wales needs reform because, despite its rhetoric, there is a growing sense that it is not yet performing to the level Wales needs. If Plaid is serious about creating more indigenous growth, stronger supply chains and better-paid jobs, then a review of the bank has to ask harder questions about whether its products are fit for purpose, whether it is taking enough strategic risk, and whether it is genuinely helping to reshape the structure of the Welsh economy rather than simply supporting activity at the margins.
There is a seriousness to the manifesto’s treatment of procurement. Welsh public bodies spend more than £8 billion each year on goods and services, and Plaid wants a much larger share of that spend retained within Wales, from around 55 per cent to at least 70 per cent. That is not a marginal adjustment but a deliberate attempt to use the public pound to strengthen Welsh firms and build capacity in local supply chains.
One can debate whether the target is achievable and whether it will create as many jobs as claimed, but the underlying instinct is sound, as public procurement in Wales has, for too long, been discussed as an administrative function rather than a strategic economic tool.
The proposal for a comprehensive national skills audit is not particularly glamorous, but employers, colleges, schools and training providers have all complained for years that there is insufficient clarity about future skills demand, too much fragmentation in provision, and too little alignment between policy and labour market needs.
The attempt to connect skills, apprenticeships, vocational routes and economic opportunity is sensible, especially when linked to sectors such as renewables, digital technology, medtech, agritech and the creative industries.
On digital and connectivity, there is support for superfast broadband rollout to the rest of Wales, for the semiconductor cluster in South Wales, for digital innovation, and for more coherent transport planning linked to wider economic development.
With regard to rail, they make the case that Wales has been chronically short-changed, particularly in relation to HS2 and wider infrastructure classifications, but (and excuse the pun) the train has probably left the station on this particular issue, and the UK Government is unlikely to change its mind.
The manifesto is less convincing in its assumptions about what follows from it. At times, Plaid seems to believe that if Wales had the right institutions, stronger tax powers and a fairer funding settlement, a stronger economy would naturally emerge.
Yes, Wales has been held back by weak tools, poor institutional design and a settlement that often leaves it underpowered, but stronger institutions are not, in themselves, a substitute for a stronger economy, nor do they automatically solve the harder questions around export intensity, business scale-up, and commercial competitiveness.
Indeed, focusing on structure rather than strategy is one of the most common mistakes that governments make in their approach to economic development and as I’ve said so many times in the past, entrepreneurship, innovation and productivity must be the beating heart of Wales’s future economic direction.
There is also, inevitably, a degree of political optimism embedded in the document and in proposals such as a Wales Wealth Fund, greater use of pension assets for local investment, and deeper fiscal reform. Each depends on institutional capacity, political leverage and execution that should never be assumed, especially given the weakness of a civil service that has served one party for over a quarter of a century.
Even so, it can be argued that Plaid Cymru has produced a manifesto that seeks to grapple with the drawbacks of the Welsh economy. Whether you agree with it or not, at least it understands that the question is not merely how to attract more activity, but how to build an economy that is more rooted and beneficial to the people who live here.
Of course, that does not answer the question, and there will be much more to do if they form a government, but it could present a serious economic offer that is long overdue, although that may also depend on the person they appoint as the economy minister. Certainly, that individual should be totally committed to developing the massive potential within our private sector here in Wales. If not, as we have seen too many times since the start of devolution, the good intentions in this manifesto may lead to nothing.
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