The Federation of Small Businesses in Wales has welcomed the official appointment of Eluned Morgan as the new First Minister.

Baroness Eluned Morgan MS was elected as the Senedd's nominee for the role and is Wales' first female leader.

Ben Francis, FSB Wales policy chairperson, praised her appointment and her previous support for small businesses in the rural economy.

The federation has urged the First Minister to reset the Welsh Government's relationship with businesses and establish stronger partnerships at a time of delicate economic recovery.

This comes after a long period where businesses have been navigating the economic hardship created by various challenges.

One key suggestion from the FSB is that the Welsh Government should establish a New Deal for Business Group.

This approach, modelled on a successful scheme in Scotland, aims to boost collaboration between the government and businesses.

The group would concentrate on securing sustainable economic growth, accelerating towards Net Zero and gaining better understanding of regulatory impacts on commercial entities.

Mr Francis also stressed the importance of establishing a productive relationship between Welsh and UK governments.

He believes that the partnership is crucial to ensure that Wales has a distinctive voice within the UK Government's growth mission.

Mr Francis, highlighting his views, said: "On behalf of FSB Wales, I congratulate Baroness Eluned Morgan MS on her election as the Senedd’s nominee to become the new First Minister of Wales and Wales’ first female leader.

"The First Minister Designate’s clear focus on prioritising the Welsh economy in order to spread prosperity is a positive signal that will be welcomed by businesses.

"At a time of slowly-improving economic conditions, the First Minister Designate has an opportunity to re-set the Welsh Government's relationship with businesses by establishing a New Deal for Business Group.

"This is an opportunity to win back confidence and to show a commitment to working in partnership on the mission of rebuilding the Welsh economy and aligning Welsh Government’s available levers to this goal."

Mr Francis further emphasised that a better partnership between the UK and Welsh governments is key to growth and confidence building.

He added: "Challenging relationships alongside duplicated and disjointed decision making to-date has done nothing to build business and investor confidence.

"It is vital that we enable small businesses to thrive, because when they do, they create jobs, spread prosperity and keep our communities vibrant."