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Select committee: Welsh Affairs Committee

Promoting Wales for inward investment

Open Opened 18 Nov 2024 2 recommendations 13 conclusions

Welsh Affairs Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
Inward investment, a term often used interchangeably with Foreign Direct Investment (FDI), refers to cross-border investment from one country to another and which aims to establish a lasting interest and effective voice in an enterprise. In FDI statistics, an effective voice means owning 10% or more of the equity share capital in an enterprise. The UK ranks among the most successful countries in Europe for attracting Foreign Direct Investment (FDI) projects and the UK Government has signalled its intention to strengthen the UK’s offer for businesses and investors. However, Wales has struggled to attract the same level of inward investment as other nations and regions in the UK - in 2023 to 2024, it attracted roughly 3.5% of the UK's total FDI projects, less than Scotland (8.35%) and the North East of England (4.48%). This inquiry is looking at how ‘Brand Wales’ is promoted internationally to market Wales as a competitive destination for inward investment, and what lessons can be learnt from success stories in the creative industries and sports sectors. How can Wales build on the success of its creative industries and sports sectors to attract inward investment? How effectively is the ‘Welsh brand’ articulated and marketed to international audiences? What barriers exist to promote Wales internationally as a destination for inward investment? How well supported are Welsh businesses to attract inward investment? How can inward investment be leveraged so that it delivers and supports sustainable, local benefit and prosperity? Are there international examples of effective investment promotion campaigns that can inform Wales’s approach to attracting inward investment?

Where it stands

The inquiry is open, opened 18 November 2024.

The committee has published 1 report, most recently 1st Report - Promoting Wales for Inward Investment on 27 May 2026.

The government's response

Published 15 September 2026. The deadline was 27 July 2026.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government welcomes the Committee's conclusions but does not agree two recommendations (a Wales Office annual inward investment report and publishing overseas investment enquiries), and agrees or accepts others 'in principle'.

  • On a Wales-specific annual inward investment report, the recommendation is not agreed: DBIST statistics already include a breakdown by UK nations, so "an additional report by the Wales Office is not required".
  • On publishing overseas investment enquiries, the recommendation is not agreed. The government does not consider a summary "sufficiently meaningful" because enquiries vary in quality, maturity and strategic value.
  • On intergovernmental groups, it agrees in principle. The next meetings of the Trade and Business and Industry groups are scheduled for October 2026, with later meetings held "on a regular basis".
  • On an investment promotion agency, it accepts in principle. DBIST and the Wales Office "will consider specific working arrangements" once the Welsh Government's policy direction is fully set out.

Read the government's response ↗ Report an error

Recommendations and conclusions

All 15 recommendations and conclusions

Reports

All reports

Evidence

  • 6 oral evidence sessionsLatest 2 February 2026
  • 15 witnesses
All evidence

Recent activity

Recommendations and conclusions 15 shown

Conclusion 1

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
We welcome recent inward investment results that suggest Wales is returning to a more competitive position in comparison to the other UK nations. However, these headline figures cannot be cause for complacency. Lower value-added investment and a reliance on investment from Europe means Wales may be vulnerable in future to economic shocks or to changes in the relationship between the UK and Europe. (Conclusion, Paragraph 37)

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Conclusion 2

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
Data must be accurate, accessible and comparable to enable governments, policymakers and investment stakeholders to make the best decisions about promoting Wales for inward investment. Neither the UK nor Welsh governments are currently providing comprehensive analysis of Wales’ inward investment results. (Conclusion, Paragraph 42)

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Conclusion 3

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
The Wales Office should work in conjunction with the Department for Business and Trade and the Office for National Statistics to produce an annual Wales-specific report on inward investment results and trends for Wales. This should include the sectoral composition of inward investment in Wales and provide a comparison with other UK nations and regions which reflects on the sizes of their respective population and economies. The Wales Office should ultimately be responsible for the publication of this report. We expect the first report to be published before the end of this calendar year, to provide sufficient time for analysis of DBT and ONS data that is generally published in the summer. (Recommendation, Paragraph 43) Why Wales?

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Conclusion 4

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
Wales is a strong and distinctive investment proposition, thanks to a strong pool of talent in key sectors, world-leading university research, its geopolitical stability, and capacity to work at pace and in collaboration with the UK and Welsh governments. (Conclusion, Paragraph 54) 33

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Conclusion 5

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
No amount of promotion can overcome fundamental challenges with the business basics, so we therefore encourage the UK Government and incoming Welsh Government to continue to work together to deliver vital improvements to Wales’ infrastructure. We will continue to monitor how the UK Government invests in reserved infrastructure in Wales throughout this Parliament. (Conclusion, Paragraph 55) Making the case for an investment promotion agency for Wales

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Conclusion 6

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
Data about Wales investment enquiries generated by DBT officials overseas and transferred to relevant partners is not being monitored or published. This makes it impossible to assess how the UK Government’s overseas network promotes Wales for inward investment. It is important that DBT demonstrates how its overseas offices deliver for Wales and the other UK nations. (Conclusion, Paragraph 66)

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Recommendation 7

Recommendation · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Recommended (the committee's words)
The Department for Business and Trade should publish a summary of the investment enquiries generated by its overseas network as part of its annual inward investment results. The summary should be broken down to a UK nation level. (Recommendation, Paragraph 67)

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Conclusion 8

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
It is disappointing that intergovernmental infrastructure does not appear to be being used to support inter-ministerial collaboration on inward investment, as a key growth priority. Consistent engagement at a ministerial level between the UK and Welsh governments would provide clear political direction to departments about the importance of collaboration between the two governments to deliver inward investment for Wales. (Conclusion, Paragraph 71)

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Recommendation 9

Recommendation · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Recommended (the committee's words)
The Minister for Investment should engage with existing intergovernmental infrastructure to co-ordinate with Welsh Government ministers. Interministerial groups should be used to facilitate discussions about challenges as they develop and to agree solutions. We recommend that the next meetings of the Intergovernmental groups on Trade and Business and Industry take place in autumn 2026, to provide time for incoming ministers in the devolved administrations to be appointed to their posts. Thereafter, we recommend that the UK Government ensures that these intergovernmental groups meet regularly and consistently, as they are an important vehicle to support intergovernmental collaboration. The Minister for Investment should regularly attend these meetings. (Recommendation, Paragraph 72) 34

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Conclusion 10

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
There is strong evidence that an arms-length investment promotion agency for Wales would have a positive impact on attracting inward investment into Wales. The Committee recognises that establishing an investment promotion agency for Wales is in the gift of the Welsh Government. However, should the Welsh Government choose to do so, the agency must co-ordinate with the UK Government to have the greatest impact on delivering inward investment for Wales. This Committee believes that establishing an investment agency would signal to investors that Wales is open for business, improve investors’ experience of investing in Wales, and provide the tools to tackle the challenges that face investment promotion in Wales. (Conclusion, Paragraph 82)

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Conclusion 11

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
We encourage the incoming Welsh Government to seriously consider establishing a dedicated investment promotion agency. If the Welsh Government establishes an investment promotion agency for Wales, the Department for Business and Trade must set out how it will work with the agency in a Memorandum of Understanding. DBT should do this in conjunction with the Wales Office and in collaboration with the Welsh Government. This is a vital step, as it provides certainty to investors about how the two governments will work together. (Recommendation, Paragraph 83) Untapped potential

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Conclusion 12

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
The Welsh diaspora is an untapped resource that offers new and exciting opportunities to engage with emerging markets and strengthen the diversity of Wales’ inward investment profile in a distinctly Welsh and personal way. The UK Government should celebrate and better connect with a Welsh diaspora that is successful in business, outward looking, and that wants to support Wales’ prosperity and growth. (Conclusion, Paragraph 91)

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Conclusion 13

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
The Wales Office should develop and implement an investment-focused Welsh diaspora engagement strategy by summer 2027. The Wales Office should do this in conjunction with the Department for Business and Trade and in collaboration with the Welsh Government, to avoid duplication and to harness the strength of the UK Government’s global reach. The strategy should be focused on generating investment leads and gathering intelligence to support inward investment into Wales. The strategy should include a campaign that re-engages with the Welsh diaspora business community. (Recommendation, Paragraph 92)

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Conclusion 14

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
Clusters present an opportunity to showcase and communicate Wales’ strengths to prospective investors, and these valuable stories should be more consistently harnessed to promote a region’s advantages to investors. (Conclusion, Paragraph 101) 35

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Conclusion 15

Conclusion · 1st Report - Promoting Wales for Inward Investment · Addressed to Wales Office

Concluded (the committee's words)
The Wales Office should lead work with the Department for Business and Trade to map Wales’ clusters and catalogue what they offer for prospective investors in sectors relevant to each cluster, such as R&D facilities and a robust supply chain. This map and catalogue should be regularly updated and provided to the Office for Investment to be promoted to prospective investors. The Wales Office should regularly engage with clusters that operate within the UK Government’s priority sectors in Wales, to gather investment insights, and monitor for emerging clusters to promote as opportunities for early investment. The Wales Office should use intergovernmental structures to co-ordinate this work alongside the Welsh Government’s investment activities. (Recommendation, Paragraph 102) 36

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Reports

1 report

Oral evidence sessions

6 sessions

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Date Session and witnesses Source
2 Feb 2026
Oral evidence session
The Lord Stockwood · Department for Business and Trade at UK Government, Tim Newns · Department for Business and Trade at UK Government 		View ↗
10 Dec 2025
Oral evidence
Andrew Gwatkin · Welsh Government, Liz Lalley · Welsh Government, Rebecca Evans MS · Welsh Government 		View ↗
3 Sep 2025
Oral evidence
Andrew Carter · Centre for Cities, Dr Rhian Hayward MBE · AberInnovation, Howard Rupprecht · CSconnected Ltd, Russell Greenslade · CBI 		View ↗
14 May 2025
Oral Evidence
Joe Manning · MIDAS, Mark Hallan · Scottish Development International 		View ↗
26 Mar 2025
Oral evidence
James Gardiner · Ernst & Young, Ken Poole MBE · Cardiff Council and Invest in Cardiff, Nan Williams · Four Communications, Professor Riccardo Crescenzi · London School of Economics and Political Science 		View ↗
19 Mar 2025
Oral evidence
James Gardiner · Ernst & Young, Ken Poole MBE · Cardiff Council and Invest in Cardiff, Nan Williams · Four Communications, Professor Riccardo Crescenzi · London School of Economics and Political Science 		View ↗

Who gave evidence

15 witnesses

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WitnessOrganisationSessions
James Gardiner · Senior Economist Ernst & Young 2
Ken Poole MBE · Head of Economic Development Cardiff Council and Invest in Cardiff 2
Nan Williams · Chair, GlobalWelsh, and CEO Four Communications 2
Professor Riccardo Crescenzi · Professor of Economic Geography; Deputy Head of Department of Geography and Environment (Research) London School of Economics and Political Science 2
Andrew Carter · Chief Executive Centre for Cities 1
Andrew Gwatkin · Director - International Relations and Trade Welsh Government 1
Dr Rhian Hayward MBE · Chief Executive AberInnovation 1
Howard Rupprecht · Managing Director CSconnected Ltd 1
Joe Manning · Managing Director MIDAS 1
Liz Lalley · Director - Economic Policy and Strategy Welsh Government 1
Mark Hallan · Director of Global Investment Scottish Development International 1
Rebecca Evans MS · Cabinet Secretary for Economy, Energy and Planning Welsh Government 1
Russell Greenslade · Wales Director CBI 1
The Lord Stockwood · Minister for Investment Department for Business and Trade at UK Government 1
Tim Newns · Director, Office for Investment Department for Business and Trade at UK Government 1

Correspondence

12 letters

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PublishedDirectionLetter
21 May 2026 Not recorded Correspondence from Scottish Enterprise relating to 14 May 2025 evidence session on Promoting Wales for Inward investment inquiry
11 Mar 2026 Not recorded Correspondence to and from Lord Stockwood, relating to the evidence session on 2 February, dated 5 and 24 February
11 Feb 2026 Not recorded Correspondence from Lord Harrington, relating to the inquiry Promoting Wales for Inward Investment, dated 22 January
28 Jan 2026 Not recorded Correspondence from Rebecca Evans MS, dated 13 January, relating to the evidence session on 10 December, in English and Welsh.
13 Nov 2025 Not recorded Correspondence from Rhian Hayward dated 29 September relating to the 3 September evidence session on Promoting Wales for Inward Investment
13 Nov 2025 Not recorded Correspondence from Howard Rupprecht dated 29 September 2025 relating to the 3 September evidence session on Promoting Wales for Inward Investment
25 Jun 2025 Not recorded Correspondence from the Chair to Ken Poole MBE dated 08 April 2025 relating to the evidence session on 26 March as part of the inquiry into Promoting Wale
25 Jun 2025 Not recorded Correspondence from Ken Poole MBE to the Chair dated 16 April 2025 relating to the evidence session on 26 March as part of the inquiry into Promoting Wales
19 Jun 2025 Not recorded Correspondence from Nan Williams to the Chair dated 13 June 2025 relating to the evidence session on 26 March as part of the inquiry into Promoting Wales for Inward Investment
19 Jun 2025 Not recorded Correspondence from the Chair to Nan Williams dated 8 April 2025 relating to the evidence session on 26 March as part of the inquiry into Promoting Wales for Inward Investment
19 Jun 2025 Not recorded Correspondence from Professor Riccardo Crescenzi to the Chair dated 13 June 2025 relating to the evidence session on 26 March as part of the inquiry into Promoting Wales for Inward Investment
19 Jun 2025 Not recorded Correspondence from the Chair to Professor Riccardo Crescenzi dated 8 April 2025 relating to the evidence session on 26 March as part of the inquiry into Promoting Wales for Inward Investment