WIREDGOV

Establishing a dedicated Welsh investment promotion agency (IPA) would improve and streamline support for overseas businesses wanting to invest in Wales, MPs say today.

• Read the report

The report from the Welsh Affairs Committee encourages the Welsh Government to set up an IPA, arguing that an agency would signal to investors that Wales is open for business and improve inward investors’ experiences of investing in Wales. 

Highlighting the challenges faced by potential investors having to navigate several layers of government, the report says it would help by providing a clear point of contact.

An IPA would be in the Welsh Government’s gift, but today’s report recommends that the Department for Business and Trade alongside the Wales Office sets out how it would work with such an agency to provide certainty to investors about how the UK and Welsh Governments would work together.

The Committee’s inquiry was launched amid concerns that, despite its strong offer to investors, Wales was missing out on inward investment opportunities. Despite successes such as the purchase of Wrexham AFC by Rob McElhenney and Ryan Reynolds, the number of Foreign Direct Investment projects that Wales has attracted has broadly declined over the past decade, as has its share of the UK’s total new inward investment – although there have been recent signs of improvement.

MPs are also calling on the UK Government to develop a strategy to engage with the three to four million people overseas who share a connection to Wales. The Committee describes the Welsh diaspora as an “untapped resource” with the potential to offer new opportunities for inward investment, including in rural and disadvantaged communities. 

The UK Government should also improve data on inward investment in Wales to enable governments, policymakers and investment stakeholders to make the best decisions about promoting Wales. Currently, neither the UK nor Welsh government produce a comprehensive analysis of Wales’ inward investment results. 

The Committee is calling for the Wales Office to work with the Department for Business and Trade (DBT) and the Office for National Statistics (ONS) to produce an annual Wales-specific report on inward investment results and trends. It also recommends that DBT publishes a summary of the investment enquiries generated by its overseas network as part of its annual inward investment results.

Chair comment

Ruth Jones MP, Chair of the Welsh Affairs Committee, said:

“Wales is home to world-leading university research, a globally recognised advanced manufacturing sector, a thriving creative industry, and strong connections to major economic hubs across the UK. But despite its strong offering to investors, there are concerns it is missing out on investment from overseas.

"The investment landscape can be difficult to navigate, with several layers of government involved and no single, clear point of contact for investors. We are encouraging the Welsh Government to establish a dedicated investment agency for Wales, so that anyone who wants to invest here knows exactly where to turn.

"We also want Wales to harness the untapped potential of the Welsh diaspora. There are three to four million people around the world who share a connection to Wales. We would like to see a dedicated strategy to re-engage that global community and channel their networks into investment for Wales. That is why we are calling on the Wales Office to lead a diaspora engagement strategy, one that generates investment leads and reconnects with the Welsh diaspora business community.

"Wales has the talent, the ambition, and a story worth telling. But to tell it well, we also need the right information. We are calling on the Wales Office to lead work on an annual report on Wales' inward investment results and trends, so that policymakers and investment teams can identify opportunities and respond to them quickly.

"The success of Wrexham AFC under Hollywood actors Ryan Reynolds and Rob McElhenney has created exciting opportunities to promote Wales as a destination for inward investment. Our report sets out the steps that will help make sure the world gets to hear more of Wales' story and invest in its future.”

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees
• Welsh Affairs Committee