Despite inheriting economic crisis and empty coffers, prudent UK Governments since 2010 had maximised have successfully exploited opportunities to realise the UK’s economic potential.
Just this month, official figures for the UK have shown:
- Construction output up
- Production output up
- Services output up
- Employment rate up to the joint highest figure on record
- Unemployment rate down the lowest level in 45 years
- UK economic inactivity lower than a year earlier and close to a record low.
- And average weekly earnings - with and without bonuses – up both before and after adjusting for inflation
However, only Wales has two decades of devolved Labour Government – with the Welsh Government in Cardiff responsible for economic development and employability in Wales.
Those same official figures paint a different and very worrying picture here:
- the employment rate in Labour-led Wales was both down 0.8% and 0.8% behind the GB figure.
- the unemployment rate in Labour-led Wales was up 0.4% on the quarter and the highest amongst the UK nations, 0.7% higher than the UK figure.
- And the largest estimated decrease in workforce jobs in the UK was in Labour-led Wales at 9,000.
UK Research and development expenditure rose by £1.6 billion to £34.8 billion in 2017, above the long-term annual average up 4.1% since 1990.
However, although the UK spent £527 on R&D per head of population, with England spending £554, Scotland £466 and Northern Ireland £371, the figure in Wales was only £238.
In March, OECD figures showed that personal well-being levels have improved in the UK, as have mental health scores – increasing by 4.6% between 2011 and 2016 to 63.2%.
However, only this month research Commissioned by the End Child Poverty Network showed that Wales was the only UK Nation to see a rise in child poverty last year.
Typically, the Welsh Government blamed UK Government policies – where anybody capable of independent thought would understand that UK Government policies applying in Wales also apply throughout the UK, whereas only Wales has only suffered two decades of Labour led Government in Cardiff.
AND this, despite the Welsh Government having blown Billions on top-down programmes meant to tackle poverty and drive down the prosperity gap to the rest of the UK.
As Wales Online reported in February, quoting people in Ebbw Vale “despite millions spent on regional regeneration projects, it hadn’t done what they needed – bringing jobs and bringing businesses in” .
ONS figures for 2017 in February revealed that productivity levels in all regions of Wales were below the average for the UK, with even the best-performing counties of Flintshire and Wrexham still 4% below the UK average
Wales remained the least productive of the 12 UK nations and regions.
Even more shockingly, growth in the value of goods and services produced per head in Wales had been slower than Scotland, Northern Ireland and England once again.
Successive Labour Welsh Governments have failed to close the gap between the richest and poorest parts of Wales – and between Wales and the rest of the UK.
The last UK Labour Government ignored warnings about borrowing levels, sub-prime debt and bank collapse, and leaned on the Financial Regulator to apply light touch regulation to the banks - causing Credit Crunch and Austerity.
The policies still advocated by Labour would have generated far higher cuts by now, imposed externally.
But, as the UK Chancellor said in March “our balanced approach means our country’s debt is falling and more money invested in our public services”.
The Labour Welsh Government’s Economic Action Plan follows three failed previous economic plans in 20 years.
They commissioned a report on “Fair Work” but the UK Government had already commissioned the Taylor Review of Modern Working Practices, which formed the basis of its Good Work Plan.
This commits to a range of policy changes to ensure that employees can access fair and decent work – the right plan for ensuring that the Welsh labour market is both fair to employees and allows businesses to thrive.
The Welsh Government amendment claims a lack of UK Government investment in Wales – conveniently forgetting, for example:
- Wales receives £12 million for every £10 million spent in England
- Nearly three quarters of a Billion pounds for City and Growth Deals in Wales
- Almost £1 Billion of defence spending in Wales last year alone, supporting over 6,000 jobs
- and £2 Billion Network Rail Investment over the next five years.
As a Nation celebrating innovation and entrepreneurship and embracing technological advancement - Wales would be extraordinarily well placed to benefit from the new industrial revolution – but the real change we need will only begin with a change of Government in Cardiff.