Welsh Government’s Economic Contract launched
In December, Welsh Government’s Economic Action Plan set out plans to launch a new Economic Contract. The contract requires businesses seeking Welsh Government support to commit to the principles of growth, fair work, reducing carbon footprints, health, skills and learning in the workplace. The Economic Contract went live on Monday.
We broadly welcome the Economic Contract. It is a step in the right direction towards an economic policy that works for everyone. But there is still a lot more than needs to be done if we are to achieve an inclusive economy in Wales.
As a result of the new Economic Contract businesses that receive government support will be expected to give something back in return. The Contract will only apply to the £50 million economic futures fund in the first instance. If successful the Wales Co-operative Centre would like to see the contract rolled out to a broader range Welsh Government support measures in future.
The Wales Co-operative Centre and the Bevan Foundation have launched a new report which will include six essential steps that evidence suggests are required to achieve economic inclusion. One of these steps is increased support for ‘social businesses.’
Social businesses are a category of firms that already put something back. Social businesses include social enterprises, co-ops and employee owned businesses. These businesses have environmental and social objectives, not just economic ones, as part of their DNA, it is how they operate. What is more they reinvest their profits to achieve their social goals or share them amongst their staff. It would be fantastic to see more traditional businesses adopt the social business model as a result of this new contract.