Diolch, Llywydd. When I launched the economic action plan, I made it clear that I was introducing a new approach to deliver public investment with a social purpose in support of our national strategy 'Prosperity for All' and its five priority areas of early years, mental health, employability and skills, housing, and social care. Through the plan, we are building on the excellent progress we have made. With over 37,000 jobs supported across the whole of Wales in the last year and over 190,000 in the last five years of the Government, our record is strong. However, our economy is changing and we must change with it to be inclusive and competitive in the future. Today, I am pleased to announce a major step forward in delivering the plan and its compelling vision to strengthen our economic foundations, futureproof businesses and empower productive regions and people.

Since launching the economic action plan five months ago, I have been encouraged by the positive way in which it has been received. We have travelled the length and breadth of Wales to talk to businesses, representative organisations and others about the plan and to seek their input on how we implement and deliver its commitments. These conversations have been stimulating, challenging and, above all, hugely interesting and informative. What we have heard has been invaluable in shaping the way forward, and I'm very grateful to all those who took time to talk with us. The nature of those conversations has been as diverse as the participants, but a number of common messages have come to the fore time and time again. Firstly, economic development is underpinned by strong relationships not just between business and Government, but also with a range of other partners, too—our learning institutions, trade unions, local authorities, third sector, and, of course, people. Secondly is the importance of proportionality and flexibility in addressing varying needs of businesses of different sizes, types, and locations across Wales. Thirdly, making a difference is about more than simply changes in policy; it’s about cultures, behaviours and ways of working.

We have used this learning to develop the new operating model that I am launching today. Through the economic contract, we will develop a new and strengthened relationship with business to drive inclusive growth and responsible business behaviours. Businesses seeking our support will enter into an ongoing dialogue with us—one that shifts from co-existence and moves to collaboration. We expect businesses to commit to growth, fair work, reducing carbon footprints, health, skills, and learning in the workplace. These are the behaviours already exhibited in many successful and responsible businesses. We'll recognise those businesses already taking steps to adopt responsible business and employment practices, and we'll encourage and support others to take a similar path. This is about engagement, incentive and spreading good practice—a reciprocal something-for-something approach. 

If the economic contract focuses on what businesses are doing today, then it is our calls to action that will prepare businesses for tomorrow. We want to work with business to co-invest in the types of investment that will futureproof them and strengthen our economy today and for future generations. From today, five calls to action will be the new lens through which we will channel our direct business finance. 

The calls to action challenge Government and businesses to look at future investment through the contribution it will make to innovation and entrepreneurship, research and development and automation, exports and trade, high-quality employment and skills, and decarbonisation. These are some of the key strategic challenges we have to address if we are to secure growth not just today, but growth that is futureproofed to maximise opportunities that lie ahead. Taken together, the economic contract and calls to action form the basis of our new operating model targeted at ensuring public investment with a social purpose—driving wealth and well-being, inclusive growth today, futureproofing business and the economy for tomorrow.

From today, we will switch seamlessly to this new approach. All new business investment proposals that come forward for direct financial support under my direct control will be subject to this new prism, with the former way of working only applying to legacy projects to guarantee business continuity and a smooth transition. As we implement this new approach, I am determined that we capture learning and use this to refine and drive continuous improvement. This is part of our new way of working, and so I will be carrying on the conversation with business to get their feedback on how the new operating model is working in practice so that we can continue to evolve and shape our approach accordingly. My vision, and that of Cabinet, is that, over time, we will broaden the scope of this new approach and embrace direct financial support to business across all of Government. However, this is a significant change and I want to ensure that we implement it well and use our learning for further implementation.

I recognise the calls from businesses and others to simplify and streamline our approach wherever possible. One of the areas where we hear this plea loudest is in relation to our financial support. There is no doubt that businesses value the financial support that we provide and it plays a big role in helping some businesses to fulfil their aspirations to sustain and grow. However, sometimes, the sheer range of schemes, programmes and funds that we offer can be confusing and complex. I am responding to these concerns and, as part of the new operating model, I have taken the step of consolidating a number of current schemes within a new economy futures fund. I want the direct financial support that we offer to business to be clear, easily understood and responsive. The economy futures fund will make an important contribution in that regard. 

In line with this simplification agenda, I am pleased to announce the establishment of a new overarching ministerial advisory board alongside a parallel process to streamline existing advisory bodies where possible and practicable. The new ministerial advisory board will complement existing social partnership arrangements and provide a strong external mechanism for challenge and advice to support effective implementation of the economic action plan. I am establishing the ministerial advisory board on a transition basis to allow time for a public appointments process to be undertaken. It will be chaired by Sir Adrian Webb, and a full list of its members will be published on the Welsh Government’s website.

Implementation of the economic action plan does not end with my statement today. We have important work to do in implementing other key aspects of the plan—our new approach to regional economic development and wider cross-Government activity. These will be the areas that we will focus on in the second phase of implementing the plan, and, to help take this forward, I am establishing and will chair a cross-Government delivery board of senior civil servants. 

As we deliver this plan, we will learn from international best practice, and this includes taking the bold step of opening ourselves up to constructive challenge from the Organisation for Economic Co-operation and Development and from other international experts in the economic development field. I'll be in a position to provide further detail on this work in the next phase of implementation. 

I look forward to keeping Members updated on these developments in the weeks and months ahead.