Ahead of the Senedd debate on the Economy Trade and Rural Affairs Committee report on the Development Bank of Wales, we’re setting out some relevant background information and providing an update on recent developments since the report was published.
The Committee has previously scrutinised the Development Bank on its annual performance, as set out in its annual reports. However, this was the first time the Committee had undertaken a detailed inquiry into the organisation, which is wholly-owned by the Welsh Government. The inquiry was a general look at how the Development Bank is operating seven years after it was first established.
The Committee made 13 recommendations in total, of which the Welsh Government accepted seven in full, accepted five ‘in principle’ and rejected one.
The Development Bank’s response, which was provided in two parts (in September and October), sets out progress and updates against the Committee’s recommendations.
In a return to the usual annual cycle of scrutiny the Development Bank gave evidence to the Committee on 20 November.
The session covered the Development Bank’s performance, as set out in its latest Annual Report, as well as the Bank’s progress in responding to some of the Committee’s recommendations.
High-level achievements for 2023-24 highlighted in the Annual Report include:
- £175 million total impact on the Welsh economy, down from £238 million in 2022-23.
- £125 million direct investment into Welsh businesses (22.5% in north Wales, 44% in mid and west Wales, and 33.5% in south east Wales). This is a small increase on the £124 million direct investment achieved in 2022-23.
- £50 million additional investment from banks and other private-sector co-investment (down from £114 million in 2022-23 and £64 million in 2021-22).
- Equity investments totalled £12.2 million in 2023-24. This is £10 million down on the previous year and below the annual average for the current term of government of £15.5 million.
- 491 investments made, down slightly from 516 in 2022-23.
- 4,406 jobs created or safeguarded in Wales, against a target of 3,779.
- Average deal size of £255,000, up slightly from £240,000 in 2022-23.
Reflecting on the Development Bank’s performance in 2023-24, the Chief Executive told the Committee “It was an OK year. I don’t think it was exceptional”.
In relation to Recommendation 12 of the Committee’s report, the Chief Executive said that the Welsh Government has not been in touch yet to scope out the review of the Development Bank, which planned for 2026.
You can tune into the debate on the Committee’s report on the development Bank live on Senedd TV on Wednesday 27 November.
In Brief by Ben Stokes, Senedd Research, Welsh Parliament
