Revisiting the Past, Planning for the Future
Across three decades, one small agency in Wales was responsible for attracting over £11 billion in investment, equivalent to around £19 billion today. That agency was the Welsh Development Agency (WDA). Despite its controversial end marked by poor leadership and a lack of oversight, the WDA helped shape modern Wales. From attracting major players like Sony, Bosch, and Hoover, to supporting home-grown successes such as Admiral and the National Botanical Gardens, the WDA's legacy still looms large.
As we grapple with economic uncertainty and regional inequality, is it time to ask: how does regional development work today, and what could we learn from the WDA to better shape the future? This blog explores how economic growth strategies have evolved in Wales and how the proposed Invest 2035 vision could bring about a new era of transformation.
A Tale of Two Approaches: The WDA and What Followed
From 1976 to 2006, the Welsh Development Agency helped bring billions of pounds in investment and thousands of jobs to Wales. In its prime, it was bold, agile, and commercial hallmarks of a hands-on economic revival model. Since its closure, regional development has taken a more bureaucratic and politically integrated path, more strategic perhaps, but arguably less impactful on the ground.
The WDA was one of several regional development agencies (RDAs) in the UK and Ireland alongside Scottish Enterprise, Invest Northern Ireland, and Enterprise Ireland created to tackle regional economic disparities and drive national prosperity.
Their core functions included: Generating economic growth and jobs Attracting inward investment Supporting local businesses and innovation Developing infrastructure and land Growing skills and workforce potential Addressing regional inequalities Driving long-term strategic planning Leveraging pre-Brexit EU and national funding
Established under the Welsh Development Agency Act of 1975, the WDA aimed to reverse the decline of Wales' ailing economy following the gradual decrease in, coal, steel, and heavy industries due to lack of global competitiveness and better understanding of pollution.
The WDA was created with the following aims: Promoting economic development
Enhancing industrial competitiveness
Creating and safeguarding jobs
Improving the physical environment
But in 2006, the WDA, along with ELWa (Education and Learning Wales) and the Wales Tourist Board was dissolved and absorbed into the Welsh Assembly Government (now the Welsh Government). Since then, various bodies like Invest Wales, the Development Bank of Wales, Business Wales, the four regional growth deals and investment zones have inherited elements of its mission. However, their fragmented nature and disconnected structures have made it difficult to fully track impact.
The Context Then—and Now
By the 1970s, Wales faced an economic crisis. Its reliance on declining heavy industries had led to unemployment, emigration, and stagnation. The WDA's closure decades later came amidst concerns over governance: poor procurement practices, leadership failures, and inadequate oversight. Yet these issues were not insurmountable, they highlight the need for strong leadership and robust accountability in any new arm's-length body.
What's striking is how familiar today's challenges feel. Deindustrialisation's legacy is still affecting Welsh communities, and the need to bring new industries and anchor companies to Wales remains as urgent as ever.
Let's compare the two models we've experienced:
This dual experience offers Wales a unique vantage point: an opportunity to blend what worked with what's needed now.
Lessons from the WDA: What Still Matters Today
The WDA may belong to the past, but the challenges it endeavoured to overcome, economic transition, job creation, and community regeneration are still with us. As we look to the future with strategies like Invest 2035, the new UK industrial strategy, the WDA's history offers vital insights and lessons from the past. Here they are split into two categories of economic development and governance of public bodies.
Economic Development
1. Strategic Autonomy Drives Impact
Success requires freedom to act. The WDA thrived because it had statutory powers and operational independence, allowing it to move quickly and adapt to change. Today's more bureaucratic processes often hinder such agility.
2. Inward Investment Works, but must be balanced
Foreign investment can spark transformation—but not without risks. While companies like Sony and LG brought jobs and profile, many left when conditions changed. A renewed agency must strike a balance between attracting FDI and supporting home-grown enterprises.
3. Place-Based Development Delivers Results
The WDA didn't just write strategies, it changed landscapes. From revitalising Cardiff Bay to restoring valley towns, its work was visible and practical. Today's more remote planning structures often miss this kind of tangible impact.
Governance of Public Bodies
1. Clarity of Purpose is Crucial
A clear, legally defined mandate like the WDA's in 1976 builds legitimacy. But this must be paired with transparency and minimal political interference to maintain focus and effectiveness.
2. Independent Yet Accountable Structures Work Best
The WDA's semi-autonomous model allowed for innovation, but over time, concerns about oversight emerged. The lesson? Independence needs robust scrutiny and accountability, not micromanagement.
3. Merging into Government Dilutes Impact
While integration can reduce duplication, it often stifles innovation, reducing agility and responsiveness.
The Present Challenge: Fragmentation and Confusion
Today, Wales faces a complex web of more than 50 business support and membership bodies focusing on manufacturing and energy alone. each with its own remit, often disconnected from each other. Meanwhile, advisory roles are spread across groups like the Future Generations Commissioner, the National Infrastructure Commission, and the long-standing (but little-known) Wales Investment Development Advisory Panel (WIDAB). WIDAB created under the same Act as the WDA is still operating.
In contrast, Scotland and Ireland have shown the power of unified, one-stop development hubs. A modernised Welsh Development Agency could serve the same purpose: a single gateway for investors to understand land availability, funding, talent, infrastructure, and cultural context all in one place.
What Comes Next?
The new UK Industrial Strategy presents a timely opportunity. A reimagined WDA, let's call it WDA 2.0 (or Menter Cymru?) could combine the best of Wales' past and present approaches to economic development, driving Invest 2035forward.
5 Ways WDA 2.0 Can Deliver Invest 2035:
1. Turn Strategy into Local Action Adapt UK-wide priorities to local Welsh needs
Create tailored regional plans (e.g., green energy in Anglesey)
Link SMEs to national funding streams
2. Act as a One-Stop Investment Hub Market Wales globally in target sectors
Provide ready-made investment packages
De-risk projects with co-investment and infrastructure prep
3. Manage Strategic Sites and Infrastructure Identify and prepare high-potential industrial land
Accelerate planning and utilities coordination
Lead redevelopment in priority zones
4. Support Innovation and R&D Build public–private–academic partnerships, develop close relationships with our universities
Grow clusters in agri-tech, advanced manufacturing, and AI
Provide support services—skills, incubation, funding access
5. Ensure Accountability and Regional Balance Track results by region: jobs, emissions, investment
Prioritise equitable distribution beyond southeast Wales
Report transparently to government and citizens
Final Thoughts: WDA 2.0
As Wales approaches another pre-election cycle, voters and businesses alike will ask: how will economic growth be delivered in my community? Where are the jobs? How do we attract the infrastructure and companies we need?
It may be time for a new age of regional development in Wales, one where we take the best bits of both the independent and government led models and ditch the bad, one that's independent but accountable, place-based but globally minded, rooted in Welsh values but fit for a digital, green, innovation-driven world.
If we're serious about shaping a prosperous future for Wales, we need more than just ambition—we need the right tools. A revitalised and modernised WDA could be one of them. Is it time to get started?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
28 minutes ago
- The Sun
UK-India trade deal to give huge boost to economy – but there's STILL bad news for Rachel Reeves
AN INDIAN trade deal signed today will boost Britain's economy by £4.8billion a year - but will come too late to bail out Rachel Reeves before the Budget. Sir Keir Starmer will host his counterpart Narendra Modi to ink the long-awaited agreement that tears down tariff barriers. 2 The post- Brexit pact will also exempt Indian temporary workers in the UK from paying National Insurance, and vice-versa with our citizens employed on the subcontinent. But ministers insist it will not increase net migration, which was one of the main fears when subsequent Tory PMs tried to get a deal done. Indian average tariffs on UK exports will be slashed from 15 to 3 per cent, while whisky producers will toast an immediate duty cut from 150 to 75 per cent. Trade Department analysis reckons the deal will add £4.5billion to UK GDP every year, boost wages by £2.2billion and rake in £1.8billion in tax receipts. However it is understood that the benefits of the deal - which needs to be ratified by both countries' Parliaments - will not be taken into account by the OBR in time for the Budget. Sir Keir said last night: 'Our landmark trade deal with India is a major win for Britian. 'It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.' In April 2022 then PM Boris Johnson pledged an Indian trade deal 'by Diwali' but negotiations were held up by demands for more visas for Indian migrants. Current Shadow Business Secretary Andrew Griffith last night hailed Brexit allowing Britain to strike out alone and make trade agreements. Moment Trump drops paperwork for US-UK trade deal after confirming it's 'done' alongside Starmer at G7 summit in Canada He said: 'This deal is only possible because of Brexit delivered by the Conservatives. 'Our slow learner of a Prime Minister must take note and stop capitulating to Brussels via his lopsided EU reset deal. 'Any trade deal that can successfully cut regulation which stops Britain's makers from creating new jobs and wealth will be a step in the right direction.' 2
The Independent
2 hours ago
- The Independent
Starmer set to unleash billions of investment into UK as he signs India trade deal
Sir Keir Starmer is set to sign one of his landmark trade deal with India prime minister Narendra Modi which has already unleashed billions of investment in the UK. The signing of the trade deal with India after years of negotiation marks a triumph for Sir Keir who has also achieved a Brexit reset agreement with the EU and a deal with Donald Trump to tackle the US president's new tariffs. It comes as the India prime minister visits the UK on a trip aimed to build relations between the two countries. According to the government, the deal which was agreed in May, has already resulted in £6 billion in investment for the British economy. The prime minister and his Indian counterpart also agreed ahead of their meeting on Thursday to ramp up joint efforts to tackle illegal migration and organised crime. The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain. It will see tariffs on an array of British goods reduced from an average of 15 per cent to 3 per cent, with the aim of boosting the £11 billion of imports into the south Asian nation which is one of the fastest growing economies in the world. Whisky tariffs will be slashed in half, according to the government, and will fall further over successive years, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties. Before his meeting with Mr Modi to confirm the deal, Sir Keir said: "Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change. "We're putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we're determined to go further and faster to grow the economy and raise living standards across the UK." The deal is expected to result in 2,200 jobs across the country and £6 billion investment by British and Indian businesses. Meanwhile, 26 British companies have secured new business in India. Airbus & Rolls-Royce will soon begin delivering Airbus aircraft – with over half powered by Rolls-Royce engines – to major Indian airlines as part of around £5 billion worth of contracts recently agreed. These orders will help sustain hundreds of jobs across their respective sites in Filton, Broughton and Derby. A total of 18 firms have confirmed new investment including Zerowatt Energy, AI powered energy intelligence platform is setting up its Global HQ in Leicester. The firm will invest £10m and create 50 new jobs across Leicester, Manchester, Edinburgh and London over the next three years. Among the other businesses to benefit are Carbon Clean, a UK-based leader in carbon capture, with projected UK export contributions of £83 million over the next five years, has invested £7.6 million in a Global Innovation Centre in Mumbai. The deal will unlock 250 jobs across London, Glasgow and Huddersfield as well as 100 jobs in Mumbai. AI and data services company, DCube AI, is investing £5 million in the UK, unlocking 50 jobs across Manchester and London in the next three years to strength its technology offering to UK customers. Business Secretary Jonathan Reynolds said the investment will "reach all regions and nations of the UK so working people in every community can feel the benefits". He added: "The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business." The UK and India are also bolstering co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence. The deal has not given the UK as much access as it would have liked to India's financial and legal services industries. The agreement promises some benefits for the UK's financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector in discussions with her Indian counterpart. But more wide-ranging access was not agreed, and talks continue on a bilateral investment treaty aimed at protecting British investments in India and vice versa. The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly. Negotiations on the deal began when Boris Johnson was prime minister in 2022, and were concluded in May this year. Labour sought to portray closing the deal, as well as trade agreements with the US and the EU, as evidence of the Government's pragmatism and global outlook. But shadow business secretary Andrew Griffith said it had only been made possible "because of Brexit delivered by the Conservatives". He added: "Any trade deal that can successfully cut regulation which stops Britain's makers from creating new jobs and wealth will be a step in the right direction. "But the irony should not be lost on anyone that any gains from this trade deal will be blown out of the water by (Deputy Prime Minister) Angela Rayner's union charter, stifling business with red tape, the jobs tax and, come autumn, Rachel Reeves' inevitable tax hikes that will punish Britain's makers just to reward those who do not contribute." Elsewhere, Sir Keir is facing calls to raise the case of Jagtar Singh Johal, a British citizen who has been detained in India since 2017, when the Prime Minister meets Mr Modi. The Scottish Sikh is accused of being a member of the Khalistan Liberation Force, which is banned as a terror group in India. His family say he is being arbitrarily detained, with his brother Gurpreet Singh Johal insisting the matter should be "high on the agenda when the prime ministers meet"
The Guardian
2 hours ago
- The Guardian
‘People said it would never be done': UK and India trade agreement defies expectations
Keir Starmer and Narendra Modi will sign their £4.8bn trade deal on Thursday morning, concluding three and a half years of negotiations and opening up trade between the UK and India for cars, whisky, clothing and food products. For the UK, the agreement promises a much-needed economic boost and serves as proof that the country can be nimble on the international stage after Brexit. For India, it acts a signal to governments and international investors that its £3tn economy is opening up after decades of protectionism. India's average tariff rate is 13%, compared with the UK's 1.5%. Labour ministers clinched the deal within 10 months of entering government, defying expectations – above all their own – about how quickly it could be done. The negotiations were led by Jonathan Reynolds, the trade secretary, and his Indian counterpart, Piyush Goyal. Half a dozen UK officials and aides said the rapport between the pair and a focus on building trust and good relationships were critical to getting it over the line. That sometimes happened in creative ways. After Goyal told them he was a huge fan of Yes Minister, British negotiators brought him a handwritten note from Jonathan Lynn, one of the show's co-creators. 'Negotiating with India is not the same as negotiating, say, with Australia, or the USA, or Canada. It's a relationship-based system, very much about who gets on with who and ensuring that you don't insult anyone in any way,' said one senior UK official who has been closely involved in talks. 'People want to get to know you, they want to look you in the eye and be convinced that you are someone they can do business with,' another senior UK official said. 'And to some extent, the last year has been a bit of the two governments looking each other in the eye.' This meant a key task for British diplomats in India – including the high commissioner, Lindy Cameron, and the trade commissioner, Harjinder Kang – was to provide UK ministers and officials with something akin to relationship advice on dealing with their Indian counterparts. There were moments of comedy. At one point after a difficult set of negotiations, UK and Indian officials let off steam by doing yoga in the corridor outside the room. On another occasion, the British negotiators led by Kate Thornley were at the airport in Delhi about to fly home when they received a call from the Indian side saying they were prepared to make key concessions on food and drink. A negotiator who had not yet gone through airport security turned on his heels to rush back to the negotiation room. 'You have moments where it's almost collapsing, and you have moments where you think you've got it over the line,' the first senior official said. 'Until there's ink on a piece of paper, it's fluid.' Political signalling was crucial. Reynolds first met Goyal when Labour was in opposition, while he and David Lammy were visiting Delhi in February 2024. India and the UK were due to hold elections that year, with Modi widely expected to win a third term and Labour on course to end 14 years of Tory government. The trip was a particularly sensitive one for Labour, which was working to mend relations with India after a nadir in 2019 when Jeremy Corbyn was perceived to have sided with Pakistan over Kashmir. Lammy and Reynolds were having dinner with Indian investors and had not expected to meet Goyal, who like other ministers was occupied with the budget debate in parliament. But during dinner they got a message from Goyal inviting them to his home nearby for a nightcap. Over 11pm chai and kheer, Reynolds and Lammy made it clear that they would support the Conservative government if it finalised a trade deal with India – and would pick up the negotiations after the election if it didn't. A few months later, during the thick of the UK election campaign, Lammy addressed the India Global Forum and said a trade deal with the country was 'a floor, not a ceiling, of our ambitions'. He travelled to Delhi in late July, having promised Modi's government that he would visit in his first month as foreign secretary. 'There was an element of, these guys actually mean what they say,' a senior UK official recalled. 'In their manifesto, there's only one country that gets a mention – that's India. All these positive signals were received.' In November, Starmer and Modi met on the margins of the G20 summit in Brazil and reiterated their ambition for a deal. But, in the months that followed, there was a lull in negotiations which created some frustration on the Indian side, fuelling suspicions that it was not as much a priority for Labour as it had been for the Tories. In truth, Reynolds's team considered a trade deal with India to be a medium-term goal, one that was unlikely to materialise until later in the parliament. And instead of getting back around the negotiating table straight away, ministers spent several months combing through what had been already agreed under the Conservatives. 'We were going through it and bringing ministers of all departments up to speed,' said a senior UK official. In February, a year after first meeting Goyal, Reynolds travelled to Delhi to formally restart negotiations. Progress in those talks significantly exceeded officials' expectations – and crucially the two sides agreed not to reopen the aspects of the deal negotiated under the Tories. 'Things started to fall into place at such a pace,' a government source recalled. A few weeks later Rachel Reeves, the chancellor, who has also been closely involved in the talks, hosted the Indian finance minister, Nirmala Sitharaman, in 11 Downing Street. Significant headway in the negotiations had been made under Rishi Sunak, whose chief economic adviser, Douglas McNeill, would travel to India every other month for talks. Before the Indian and UK elections stopped things in their tracks, Conservative officials had hoped a deal could be struck by the autumn of 2024. The Tories were hamstrung by two obstacles which disappeared when Labour came into power. The first was Sunak's political weakness and sense he was on borrowed time. The second and most significant was Tory angst that the deal would trigger an influx of Indian migration. Suella Braverman, as the home secretary, nearly blew up the talks over the issue in 2022. Kemi Badenoch claimed this year that as Sunak's trade secretary, she stopped a deal with India because of immigration concerns – a claim which some of her former cabinet colleagues have disputed. A Labour source said Goyal 'found her disingenuous in that she would always try to present Indian asks around visas as much more than they are'. The final deal does not change immigration policy beyond facilitating visa routes in certain sectors and allowing up to 1,800 extra visas for Indian chefs, musicians and yogis a year. The agreement was finalised on 2 May by Goyal, Reynolds and their teams of negotiators over ice-cream on a sunny walk in Hyde Park. They celebrated with coffee by the lido and took pictures together in the park cafe. Civil servants worked intensively that bank holiday weekend before Starmer and Modi spoke on Tuesday to confirm the deal was done. UK hopes have since faded, however, about the chances of agreeing a separate bilateral investment treaty with India, coveted by the UK because of the benefits for the City of London. While negotiations over a treaty continue, multiple ministers and officials privately told the Guardian that they are unlikely to yield anything unless there is significant movement on the Indian side. Nonetheless, officials are bullish about what has been achieved. 'People said it would never be done,' one said. 'People said this is a country that doesn't like to do deals, it's a very protectionist society. They're changing, they're growing, they're developing to become a much more modern economy. They need this is much as we do.'
