Yet, despite the pain, I believe there is much to be positive about. If we harness the opportunities before us, Wales can unlock a new era of growth, resilience, and prosperity.

No one can deny that businesses in Wales have faced a tough few years. Inflationary pressures, supply chain disruptions, and the lingering effects of the pandemic have tested resilience. Many firms are grappling with higher borrowing charges and rising employment costs. For some, the struggle to stay afloat is very real.

But focusing solely on these difficulties risks missing the bigger picture. Wales is attracting record levels of investment, our creative and technology sectors are thriving, and we are leading the way in sustainability. These are not abstract headlines—they are real opportunities to transform our economy and create wealth for all.

At the Wales Investment Summit earlier this month, we saw pledges of more than £16 billion in inward investment. That is not just a number—it represents confidence in Wales as a place to do business. From 5G expansion to clean energy projects, these commitments will create thousands of jobs and modernise our infrastructure.

Take Vodafone’s £600 million investment to extend 5G coverage to 99% of Wales. This is more than faster internet; it is about enabling businesses in rural communities to compete globally, supporting innovation hubs, and giving young people the tools they need to thrive in a digital economy.

And in North Wales, the announcement that Anglesey will host the UK’s first small modular nuclear reactor is a landmark moment. It signals Wales’ role at the forefront of clean energy innovation, with the potential to power industry, attract skilled jobs, and anchor long-term economic transformation.

Meanwhile, our creative industries continue to shine. Cardiff-based production company Bad Wolf secured £2 million in government support to produce two high-end TV series, expected to generate £30 million in local economic spend. With 35,000 people employed across 3,500 businesses, the creative sector is a cornerstone of our economy. It demonstrates how Welsh talent and creativity can compete on the world stage.

Alongside these successes, the creation of AI Growth Zones in Wales represents a pivotal opportunity to position our nation at the forefront of digital transformation. These zones are not just about technology—they are about building ecosystems where businesses, universities, and communities can collaborate to harness the advantages of artificial intelligence.

As highlighted in the King’s Trust Gen(eration) AI report, which secured cross-party political support at its launch event in Cardiff, the challenge is to communicate the opportunities of AI clearly and responsibly while continuing to value human knowledge, judgement, and experience. Wales has the chance to lead by example: embracing AI to drive productivity and innovation, but ensuring that people remain at the heart of decision-making. This balance will be critical if we are to unlock sustainable growth and maintain public trust in the technologies shaping our future.

We must also acknowledge the urgency of sustainability. Wales has set ambitious targets to transition to a circular economy within five years. That means eliminating waste, reusing materials, and redesigning supply chains. Universities in Cardiff and Swansea are already leading programmes to help businesses adapt. This is not just about protecting the environment—it is about future-proofing our economy, reducing costs, and opening new markets.

I know many businesses have been concerned about the impact of business rate revaluations. The Welsh Government’s £116 million transitional relief package is a welcome step, and the decision to reduce the multiplier for the first time since 2010 will ease the burden for many retailers. These reforms are not perfect, but they show a willingness to listen and adapt.

At ICAEW, we will continue to listen to our members and work with policymakers to ensure that reforms support growth rather than stifle it. We need the good news coming from the Investment Summit to deliver lasting prosperity. That requires confidence—confidence from investors, confidence from businesses, and confidence from communities.
I look forward to working closely with both Westminster and the Welsh Government to leverage investment, boost resilience, and unlock economic growth in Wales. Collaboration is essential. When governments, businesses, funders, and professional bodies align, we create the conditions for success.

This is what will create wealth and opportunity for all. It is not about short-term fixes, but about building a resilient economy that can withstand shocks and seize opportunities. It is about ensuring that every community, from the Valleys to North Wales, feels the benefits of growth.

So yes, there are negatives. There is pain. But there is also progress, momentum, and opportunity. The investments we are seeing in technology, creative industries, and clean energy are not isolated—they are part of a wider story of renewal.

As 2025 draws to a close, my message is clear: let us not be paralysed by challenges. Let us use these opportunities to unlock the economy, boost investor confidence, and drive growth. Let us work together in 2026 and beyond—businesses, governments, and communities—to build resilience and create wealth for all.

In the meantime, I wish you all a very happy Christmas and prosperity in 2026.