More Welsh Government support needed to attract inward investment to Wales, says Senedd Committee

Daniel Bevan - Editor

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A Senedd committee has warned that Wales risks missing out on major inward investment unless the Welsh Government improves the support available to businesses, citing bureaucracy, inconsistent planning and unclear guidance as key barriers.

A new report from the Economy, Trade and Rural Affairs Committee found that while Wales has strong potential to attract global investors, the current system is too complex and fragmented for many firms to navigate effectively.

Responding to the committee, Welsh Government pointed to the first ever Wales Investment Summit, which was held in December, and over £16bn worth of inward investment secured last year.

Andrew RT Davies MS, Chair of the 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.”

Central to the committee’s recommendations is the creation of a “one-stop shop” for investors, a concierge-style service that would act as a single entry point for businesses seeking to establish or expand operations in Wales.

The proposed service would aim to simplify processes, provide clear guidance on available support such as training and incentives, and build longer-term relationships with employers.

The report also emphasises the importance of aftercare, pointing to past successes in retaining major investors.

While the Welsh Government’s international outreach efforts were praised for successfully promoting Wales abroad and generating leads, the committee found a disconnect between this work and delivery on the ground.

To address this, the committee is calling on the next Welsh Government to better align its domestic support with its international promotion, including closer collaboration with the UK Government, stronger engagement with the Welsh diaspora, and the introduction of regular investment summits.

The report also raises concerns about regional inequality, particularly following the loss of Assisted Area status in 2020.

Committee members argue that reinstating such support, in partnership with the UK Government, would help less prosperous areas compete more effectively for investment.

Skills shortages were identified as another major constraint.

The committee recommends that Medr, the new tertiary education and research body, works more closely with businesses and inward investors to ensure training provision matches demand, especially in vocational skills and SME supply chains.

In response, Welsh Government said: “In December, we hosted the first ever Wales Investment Summit and we saw over £16bn worth of inward investment secured throughout the calendar year.

“Our International Strategy prioritises attracting inward investment to Wales and, since its publication in January 2020, 280 investment projects from foreign-owned companies have created or safeguarded more than 24,000 jobs across Wales.

“Our inward Investment team and our international offices continue to attract investment into Wales. A wide range of sector focused promotion activities, a dedicated one-stop shop for investment enquiries and a strong aftercare programme are delivering results for Wales. The latest published data shows 65 foreign investment projects were recorded in Wales in 2024/25 – an increase of 23% increase on the previous financial year and the second highest increase of any nation or region in the UK.”