On 1st October 2025 during a Welsh Conservative debate on the Welsh Economy, Vale of Clwyd MS, and Shadow Cabinet Secretary for Culture, Tourism, Sport, and North Wales, Gareth Davies MS, laid out a warning for communities across North Wales, including in the Vale of Clwyd, and called for a set of measures to bolster the region’s economy which is flagging.
Mr Davies highlighted that North Wales, which relies heavily on tourism, hospitality, small businesses, and agriculture, is especially vulnerable to economic pressures. He warned that recent policy choices by the Welsh Government are actively undermining growth and risk accelerating decline.
He raised concerns regarding the introduction of a tourism levy, and Wales having a higher rate of business rates. Mr Davies argued instead for an economic plan based on growth, and incentive, rather than more tax and restriction. He called on the Welsh Government to act now to prevent irreversible damage in communities across North Wales.
He proposed steps to protect and restore economic prosperity in North Wales:
- Scrap the tourism levy before it is implemented
- Abolish business rates for small enterprises
- Cut the basic rate of income tax by 1p, putting £450 back into the pockets of the average Welsh family
- Champion a regulatory and planning environment that encourages innovation and investment, rather than discouraging it.
Mr Davies outlined that the Welsh economy has the lowest employment rate, the lowest median annual wages and the highest economic inactivity rate in Great Britain. He made clear that without urgent change, communities across the region could face further decline, with struggling businesses, lost jobs, and weakened prospects for young people.
Commenting, Gareth Davies MS:
“I want to see the Welsh economy firing on all cylinders because at the moment the engine is barely turning over with much concern amongst residents and businesses across North Wales who are already bearing the cost of economic stagnation, and that new policies risk exacerbating our economic woes.
“The tourism industry is an anchor for countless jobs and businesses across our coastal and rural communities, and the new visitor levy would act as a disincentive for visitors which will hit our struggling hospitality sector.
“I have called on the Welsh Government to get off the backs of small businesses, scrap the visitor levy, eliminate business rates for small businesses, and cut the basic rate of income tax so that we can breathe life into struggling businesses across the region and people can keep a bit more of what they earn.”