Welsh Government should fight for new investment zones

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On Wednesday, Jeremy Hunt stood up in the House of Commons to give his first budget as Chancellor of the Exchequer. Following the events of last September’s mini-budget under the premiership of Liz Truss, there was little chance of any radicalism within his statement to MPs.

With the Prime Minister looking to show that the Conservatives are a safe pair of hands on the economy, most of the measures proposed not only assured the markets but reflected the more sober grown-up politics that has been at the core of the Sunak premiership. That is not to say that the budget did not bring forward new proposals that could have a significant effect on the state of the UK economy in the future.



While the headlines were about the improvements in childcare and changes to pension rules to bring more people back into the workplace, the measures with the potential to change the future of the UK economy were largely hidden in the small print. One of the positive highlights was the commitment to support growth in the sectors of the future. Whether this is another rehashed industrial strategy in all but name will be up to others to debate.

However, it was heartening to see a clear statement of intent to provide real and tangible support for advanced manufacturing, the creative industries, digital technologies, green industries, and life sciences. In particular, the admittance that the UK needs to invest more in research and innovation infrastructure, especially in improving computing capability to maximise opportunities in artificial intelligence and boost critical areas such as health and climate change, is long overdue.

The commitment to investing £2.5 billion over the next decade into quantum technologies will also ensure that the UK develops a world class capability in one of the most important emerging sciences that has the capability to transform entire industries.

Whilst levelling-up remains a key part of the Government’s drive to spread economic prosperity to every part of the UK, it can be argued that much of the spending to date has been very much hit and miss, with no clear strategy as to how these funds will impact on improving productivity across the nation.

It could be argued that some of the measures announced in the budget will go some way to address this critique and ensure that boosting innovation and skills outside of London will lead to more productive local economies.

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