UK Government rejects call for annual report on investment in Wales

Mark Mansfield

The UK Government has rejected calls from MPs to publish a detailed annual report examining inward investment in Wales.

The Welsh Affairs Committee had called for a Wales-specific analysis of investment trends, including which sectors were attracting money and comparisons with other parts of the UK.

But ministers said existing statistics were sufficient and that an additional report from the Wales Office was not required.

The recommendation was made in a committee report published in May, which warned that recent improvements in headline investment figures should not lead to complacency.

MPs said Wales remained vulnerable because of its reliance on investment from Europe and lower value-added investment, while neither the UK nor Welsh governments currently provided comprehensive analysis of Wales’ performance.

The UK Government pointed to figures published in June showing Wales attracted 75 foreign investment projects during 2025-26, creating more than 1,500 jobs and safeguarding thousands more.

It said this represented the largest increase in foreign investment since 2020-21 and the second consecutive year in which the number of investments coming to Wales had risen.

The committee had recommended that the Wales Office work with the Department for Business, Innovation, Science and Trade and the Office for National Statistics to produce an annual report.

It wanted the analysis to show the sectors attracting investment and compare Wales with other UK nations and regions while taking account of the relative size of their populations and economies.

However, the UK Government said the department’s existing annual inward investment statistics already included a breakdown by UK nation and English region.

It also rejected a separate recommendation to publish details of investment inquiries generated by the UK Government’s overseas network.

Ministers argued that inquiries varied significantly in their quality, maturity and strategic importance and that publishing aggregate figures could give a misleading impression of performance.

Welsh Affairs Committee chair Ruth Jones MP said: “With a globally recognised advanced manufacturing sector and a thriving creative industry, Wales has so much to offer for investors. It has the talent, the ambition, and a story worth telling.

“But the limited analysis available to those in Wales who seek to promote these exciting opportunities means they can’t take full advantage of data insights in their work.

“It is why I’m disappointed the government will not be producing an annual report on Wales’ inward investment results and trends.

“This report would have allowed stakeholders to access accurate and detailed data to make more informed decisions about promoting Wales for inward investment, and for those considering Wales as an investment destination.”

The Government did accept several of the committee’s other recommendations in principle.

It agreed that regular ministerial cooperation between the UK and Welsh governments was important, with meetings of intergovernmental groups on trade and business and industry scheduled for October.

It also accepted in principle a recommendation concerning the potential creation of a dedicated Welsh investment promotion agency, saying the Wales Office and UK Government departments would consider how they could work with such a body once the Welsh Government had set out its policy.

Welsh diaspora

Ministers also recognised the Welsh diaspora as a “powerful resource” for attracting investment and said the Wales Office-led Brand Wales programme would receive additional funding and resources between 2026 and 2029.

Ms Jones added: “Despite this, we welcome the government accepting several of our recommendations in principle. However, it is important progress does not stop here. Tangible actions need to be set and taken forward.

“The committee will be continuing to monitor developments in this policy area and we will return to these issues if progress is not met.”

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