Senedd Election 2026: What Welsh businesses need for a thriving economy
Senedd Election 2026: What Welsh businesses need for a thriving economy
“It’s the economy, stupid!” has never felt more relevant in a Welsh context. This phrase, first coined by American political strategist James Carville in 1992, captured the notion that most voters are motivated by economic concerns. As Wales heads towards what many are calling the most significant election since devolution began, the sentiment behind this slogan remains pertinent.
In less than a year, the people of Wales will go to the polls. The upcoming election promises to be a pivotal moment, one shaped largely by the economic realities and challenges that have unfolded since the Covid-19 pandemic. Business leaders, entrepreneurs, and everyday workers alike are focused on one key question: how can we create an environment where businesses and people can thrive?
For those unfamiliar with the often mad world of Welsh politics, the election cycle has already unofficially begun. Political language is shifting, and policy positions are taking shape. Although formal party manifestos are yet to be unveiled, it’s clear that the economy will dominate the debate. Even issues such as immigration, which the Welsh Government hold no responsibility for, have an economic strand to them.
Following the turmoil of the pandemic and the economic shifts that accompanied Brexit, voters have become increasingly aware of the importance of a strong and resilient economy. Jobs, wages, and local investment have taken centre stage. As such, business leaders are keen to ensure their voices are heard as policies are formulated.
An insight from Mentera
To understand the challenges and opportunities for Welsh businesses, Businessin Wales spoke with Llyr Roberts, CEO of Mentera, Wales’ leading independent business development company. With over 30,000 clients and three and a half decades of experience, Mentera plays a crucial role in fostering business growth across the country.
Llyr stressed that creating a thriving business environment requires targeted support. He said: “It’s important to recognize that businesses in Wales are diverse, both in size and sector. To succeed, they need an environment that fosters growth and innovation. This includes addressing regional inequalities, supporting rural economies, and promoting sustainable development. Crucially, businesses need access to finance and practical support to build and develop their workforces.”
One key challenge facing Welsh businesses is the shift from long-term to annual budgeting when dealing with the public sector following Brexit. With European funding gone, the Welsh Government has adopted a year-to-year financial planning approach. Llyr argues that this makes strategic business planning difficult.
He said: “Being given budget confirmation one year at a time is challenging from a delivery and workforce perspective. We would urge any future government to adopt longer-term budget commitments to enable more confident and strategic planning.”
Priorities for the next government
Llyr identified three fundamental areas where the next Welsh Government should focus to support business growth:
1. Introduce enterprise early
“We should look to embed topics such as ‘starting your own business’ as part of the education system. This could be extended beyond schools. We have thousands of doctors, dentists, singers, actors, and so on leaving the education system without any form of business training or support. Most of these individuals will end up being self-employed at some stage in their careers. Many will own and grow (and fail) their own businesses.
“Research suggests young people leaving school or university now will have around 11 jobs in their careers as well as periods of self-employment or running their own business. We need to do more than introduce business role models in schools. We need to have an intrinsic understanding of entrepreneurship earlier if we want to be a nation of innovators.”
2. Change the way we procure
“One of the most tangible things any government can do to support its start-up, early stage and small business community is to buy from it. Public procurement represents a third of all government spending and a 10th of the whole economy. It’s a powerful tool that, if used strategically, could have an important impact on the UK’s innovation pipeline.”
3. A strategic, regional approach
“Considering that each region has its own distinctive opportunities and challenges and that the approaches to rural and urban economic development will need to be different, there’s a need to embrace a strategic, regional approach to business and economic growth. We need a clear plan for rural Wales.”
The Road Ahead
The Welsh economy has faced significant disruption over the past few years. Yet, despite these challenges, there is an opportunity to build a more resilient, inclusive, and dynamic business environment. As voters prepare to make their voices heard, in Mentera’s view, the next government will need to prioritise economic policies that empower businesses of all sizes and sectors.
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