Wales risks losing out on vital investment unless the Welsh Government urgently improves the support it offers to businesses looking to invest here, a new Senedd Committee report has warned.
The Economy, Trade and Rural Affairs Committee found that layers of bureaucracy, inconsistent planning processes and a lack of clear guidance are leaving investors struggling to navigate the system.
Andrew RT Davies MS, Chair of the Economy, Trade and Rural Affairs Committee said:
“This report makes it clear that Wales has enormous potential to attract and retain world class investment, but only if the support system is as clear, coordinated and responsive as businesses need it to be.
“Investors have told us what works and where the barriers are. Simplifying processes, strengthening skills and providing consistent aftercare will be essential if we are to secure the jobs and opportunities our communities deserve.
“Without urgent action to deliver clearer, more coordinated support, Wales risks falling further behind competitors. I hope this report will guide the next Welsh Government to act decisively and to help Wales realise its full economic potential.”
Call for a one-stop shop
The report urges the next Welsh Government to create a dedicated service to streamline support for both new and existing investors.
This should be a concierge-style service to act as a front door to navigate and simplify the process and help build long term relationships with employers.
Investors said they need clearer advice on what help is available — from training support to tax reliefs and incentives.
The Committee highlighted how ongoing aftercare has helped retain major investors in the past, with Sony cited as an example of how sustained, hands on support can secure decades of investment.
Promises made at trade fairs aren’t always matched by support at home
The Committee heard strong praise for the Welsh Government’s overseas network, which effectively promotes Wales and generates investment leads.
But Members warned that this success is not being matched by delivery on the ground.
The next Welsh Government must ensure it has a plan to create the right environment to attract and retain investors.
To do this they need to showcase our strengths by building on the overseas network and working with the UK Government, engaging with our diaspora and holding regular investment summits.
Reinstate Assisted Areas to support the poorest regions
Members also raised concerns about the loss of Assisted Areas since 2020 — support that historically helped less prosperous parts of Wales compete for investment.
They are calling on the next Welsh Government to work with the UK Government to re introduce Assisted Area status to boost communities most in need.
Skills shortages holding back growth
A shortage of skilled workers remains a significant barrier to attracting investors.
The Committee recommends that the skills body, Medr, works closely with businesses and inward investors to ensure people are trained in the right areas — particularly in vocational skills and across SME supply chains.