(Title Image: Senedd Cymru)
How much did the Welsh Government deliver on the economic and financial front this term?
Key Events & Issues of the Fifth Senedd
Brexit – Brexit was primarily about sovereignty, but the result has largely had economic consequences. It’s forced a rethink of how Wales promotes itself to the rest of the world as well as our place in the increasing insular “UK Internal Market”. Behind the scenes preparations lasted months and, fortunately, when the endgame eventually came around there was a deal – though how long it’ll last and how damaging it’ll be to the Welsh economy (as well as the potential benefits) remains to be seen.
Covid-19 Pandemic – Successive lockdowns effectively brought large parts of the economy (particularly the service sector) to a halt. Both the Welsh and UK governments were forces to carefully balance public health considerations with support for businesses to weather out multiple waves of the virus. The Development Bank (Banc) – formally established this term – came into its own before and during the pandemic, with swift moves to provide emergency finance to businesses being one of the high-points of the Welsh Government’s response.
Creation of Transport for Wales & Rail Franchise Nationalisation – Nationalisation of the railways is back in vogue and while Transport for Wales was originally set up as an oversight agency, in February 2021 it took full control of the Wales & Borders rail franchise following significant falls in passenger numbers as a result of the pandemic. There have been bright spots, such as work starting on the South Wales Metro and the imminent delivery of new rolling stock, but disruption during autumn 2018 was a very noticeable dark patch.
Cancellation of the Newport Bypass – After decades of on-off discussion, consultations and planning, the Welsh Government opted against a Newport bypass on cost and environmental grounds. It’s likely to be an election issue again this year, though the £1.6billion+ bill looks like ever increasingly poor value for money. A raft of public transport improvements in and around Newport are promised, but actions need to follow words on this or the Senedd will be punished for it.
Future of the Steel Industry – This was a major issue at the tail end of the Fourth Senedd, but it re-emerged again and again over the last five years with claims and counter-claims about the future of primary steel-making at Port Talbot, as well as the closure of Newport’s Orb electrical steelworks. Brexit uncertainty hasn’t helped and despite the willingness of the Welsh Government to find a solution, there remains no long-term fix for the plant’s energy and carbon emission problems.
Closure of Bridgend Ford Engine Plant – While everyone was focused on steel, this snuck up on the Senedd despite being the subject of a lot of background talk for years. It’s amongst the single largest loss of jobs during the Fifth Senedd, yet despite this very little has been done to address it. Ineos’s decision to pull out of a new plant next door and recent struggles at Aston Martin paint a fairly grim picture for the future of the automotive sector in Wales.
City Regions – One of the rare occasions where the Welsh and UK governments have been in agreement, though it’s worth questioning how much has been achieved to date?
Devolution of tax-varying powers – Wales now has partial control over income tax, as well as control over land transaction tax (aka. stamp duty) and landfill tax. While there have been some changes to land transaction tax, the Welsh Government has generally adopted a cautious/conservative approach to the new tax powers despite pressure to vary income tax in particular.
Key Committee Inquiries
- Industry 4.0 (Economy & Infrastructure)
- The State of Welsh Roads (Economy & Infrastructure)
- Electric Vehicle Charging Infrastructure (Economy & Infrastructure)
- Procurement in the Foundational Economy (Economy & Infrastructure)
- Access to Banking (Economy & Infrastructure)
- Decarbonisation of Transport (Economy & Infrastructure)
- The Circuit of Wales (Public Accounts)
- Wales’ Future Relationship with Europe & the World (External Affairs)
Key Legislation
- Trade Union Act 2017 – Disapplies aspects of the UK Government’s Trade Union Act 2016 in devolved public services, including vote thresholds for industrial action and restrictions on union subscriptions.
- Continuity Act 2018 (Repealed) – Initially ensured that powers under EU control were retained by the Senedd after Brexit, but was repealed following an agreement between the Welsh and UK government.
- Internal Market Bill Legislative Consent Motion (Rejected) – A consequence of the repeal of the above; the Senedd futilely rejected the imposition of a new “internal market” for the UK which has been deemed a “power grab”.
- Bus Bill (Withdrawn) – A casualty of the coronavirus pandemic, the Bill would have re-regulated bus services. Likely to be reintroduced in some form in the next term.
- Social Partnership Bill (Withdrawn) – Another casualty of the coronavirus pandemic, this Bill would have put “fair work” in law.
