Andrew R.T. Davies: Income tax cuts and business rate reform key to Welsh economic revival
Andrew R.T. Davies: Income tax cuts and business rate reform key to Welsh economic revival
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As the countdown to the 2026 Senedd election begins, the Businessin Wales podcast continues its series of interviews with key political figures. This week, former Welsh Conservative leader and current chair of the Economy Committee, Andrew R.T. Davies, joined host Daniel Bevan to discuss his party’s economic vision, life after leadership and the state of Welsh business.
Davies, who now splits his time between politics and working on his family farm in the Vale of Glamorgan, described a renewed focus on his constituency and agricultural roots since stepping down from party leadership.
“It’s a family business. I farm with my youngest brother, my eldest and two sons. But I’m also continuing to represent South Wales Central, that’s Cardiff, the Vale of Glamorgan, and the Valleys like Pontypridd and the Rhondda,” Davies explained.
But his focus isn’t just local. With electoral boundaries changing and 36 new Members of the Senedd set to be introduced, Davies has already been selected as the Conservative candidate for the newly drawn Pen-y-Bont Bro Morgannwg (Vale of Glamorgan and Bridgend) constituency, a shift he described as costly and unnecessary.
“Plaid and Labour decided to rip up the electoral map and fund it to the tune of £120 million over the next Senedd term,” Davies said, noting the impact on both representation and public finances.
At the heart of the Conservatives’ economic pitch is a cut to the basic rate of income tax, a move Davies says could put an average of £456 a year back into the pockets of Welsh households.
While Davies no longer sits in the Shadow Cabinet and made it clear that he wasn’t directly involved in developing the policy he reiterated his support for lower taxes.
“I’m a low-tax Conservative. People earn their money; they should be able to keep it,” he said. “And this tax cut would provide real money that makes a real difference for families.”
Still, Davies acknowledged the need to maintain core public services such as health, education, and transport, suggesting that the Conservatives’ economic strategy would aim for a balance between affordability and sustainability.
Davies was particularly vocal about what he sees as the unfairness of the business rates system in Wales, calling it the highest in the UK and out of step with efforts made in England to support small businesses.
“Many small businesses in Wales pay the same rates as large out-of-town supermarkets. That’s just not fair,” he argued. “In England, we adjusted the multiplier to support small businesses. That’s what we should be doing here.”
He highlighted the importance of ensuring that businesses retain more capital, arguing that money kept on balance sheets translates to more jobs and stronger local economies.
Stay tuned to the Businessin Wales Podcast as we continue to interview the movers and shakers of Wales politics ahead of the Welsh public going to the polls next year.
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