The Economic Contract is an agreement between the Welsh Government and the businesses it supports on how we will work together in partnership to create resilient businesses that offer an attractive place to work.
The Economic Contract is a commitment to provide public investment that prioritises the social and environmental needs of Wales whilst building a more resilient and prosperous wellbeing economy. At the heart of our Something for Something approach, it is an agreement between the Welsh Government and a business on the actions we will both take which contribute to tackling the challenges we face and to improve the lives of people across Wales.
Through the Economic Contract business demonstrate the contribution they will make to these principles and the Welsh Government sets out the non-financial support it will give it in return. It will ask businesses to demonstrate current action in all of the following areas and commit to new developments in the form of pledges:
Economic Strength & Adaptability
Economic strength and adaptability is where organisations are building stronger better business, are resilient and adaptable to changing economic and market conditions. Organisations are ready to grow sustainably and are building strong collaborative relationships.
Fair work is where workers are fairly rewarded, heard and represented, secure and able to progress in a healthy, inclusive environment where rights are respected. We use the full definition of Fair Work as found in the Fair Work Wales report.
Tackling inequality and promoting equality and inclusion for all protected groups is integral to all six characteristics
1. Fair reward
2. Employee voice and collective representation
3. Security and flexibility
4. Opportunity for access, growth and progression
5. Safe, healthy and inclusive working environment
6. Legal rights respected and given substantive effect
Promotion of Wellbeing
A business which is committed to the promotion of people’s wellbeing is one which takes proactive action to:
• Ensure a healthier workforce, where physical and mental wellbeing is maximised
• Contribute to a healthier society
• Contribute to creating cohesive communities that are attractive, viable, safe and well connected
• Promote and protect our vibrant culture, heritage and Welsh Language, encouraging participation in the arts, sports and recreation.
Low Carbon and Climate Resilient
A low carbon, climate resilient business is one which takes positive action to minimise and reduce carbon emissions, build resilience and respond to the threats and opportunities from the impacts of climate change by adapting business practices for the future.
This pillar will be delivered in line with our approach to a Just Transition as set out in our Net Zero Wales Carbon Delivery Plan.
Economic Contracts are agreed with businesses and organisations that the Welsh Government works with and supports.
Whilst not directly linked to funding it is a gateway to applying for direct business support such as the Economic Futures Fund. Having an Economic Contract is not a guarantee of funding.
The Economic Contract continues to evolve to meet the priorities of business and government and help us build a prosperous, green and equal economy.