North Wales MS Mark Isherwood has warned that the latest UK Autumn Budget has sparked widespread concern among business leaders and organisations across the UK.
In today's meeting of the Welsh Parliament, Mr Isherwood asked the Cabinet Secretary for Finance, Mark Drakeford MS, what consideration he gave to ensuring economic growth in North Wales when setting the Welsh Government’s Budget for 2026/27.
In his response, the Cabinet Secretary referred to the AI Growth Zone for North Wales, approvals for the Free Port and Investment Zones, and direct support to businesses such as Siemens Healthineers.
Mr Isherwood added:
"Much of that follows initiatives by the previous UK Government. But although a stronger economy is needed for quality, sustainable public services, the Institute of Directors' Chief Economist has said ‘Business leaders are worn out from the past year's rollercoaster of uncertainty and tax increases’, and that 80 per cent of business leaders feel negative about the UK Autumn Budget.
"The Federation of Small Businesses said the UK Budget risks ‘continuing the economic doom loop’. The Confederation of British Industry said the UK Budget ‘makes it even more expensive for employers to offer jobs to young people and job seekers’, and the British Chambers of Commerce said the UK Budget risks damage to rural economies.
"The economy is stagnating, contracting in September and October, inflation remains above target, annual debt payments have surged to £100 billion, and UK unemployment has soared to 5.1 per cent, and to 6.1 per cent in Wales, hit by the double whammy of two Labour Governments. All of this impacts on economic growth in North Wales and beyond.
"So, did you listen to these warnings? If you did, what action, if any, did you take to break this cycle of economic hopelessness and kick-start the economy of North Wales, and the whole of Wales, in acknowledgement of the concerns raised?"
The Cabinet Secretary responded:
"My advice to the Member when he comes across people afflicted with economic hopelessness of the sort that he has described is to invite them to North Wales, where they will see an economy that is thriving, where unemployment is below the UK and the Welsh average, where wages are above the UK average, and where there are developments, from investment in Holyhead in the west, to the manufacturing readiness centre in the east."
Speaking after the meeting, Mr Isherwood added:
"Despite the professorial manner in which he dispenses his apparent wisdom, he appears unaware that there are areas of high unemployment in North Wales, and seems to have missed yesterday’s figures showing that unemployment in Wales has risen sharply, while the rate of working age adults classed as economically inactive remains one of the highest of any UK nation or region.
"He also appears unaware that the last ‘average (median) gross weekly earnings by Welsh local areas’ statistics published by StatsWales, for 2024, show that the £671.20 figure for North Wales lagged the £674.50 for Wales and £728.30 for the UK, and that although the figure for Wales had increased to £719.30 in April 2025, this compared to the UK average of £766.60."
