GUEST COLUMN:
Joshua Miles
Head of Wales
Federation of Small Businesses
As parties sketch out their priorities for the 2026 Senedd election, one idea is gathering real momentum: a new Welsh Development Agency — WDA 2.0.
From my perspective as Head of Wales for FSB, this is a moment of genuine opportunity. A modern development body could help Wales rebuild long‑term economic capability — something we’ve been missing for too long.
But for me the starting point is simple: WDA 2.0 must be a forward‑looking institution, built for the Wales we want to become — not an attempt to recreate the Wales we used to be.
We can’t rely on the inward investment model of the 80s – that was built on Wales being a low-cost gateway to the European market. Too much has changed.
If we get this right, WDA 2.0 can do three things that will genuinely shift the dial:
- Grow more Welsh SMEs, drive their productivity and help them scale
- Internationalise Welsh firms and open more global opportunities
- Attract inward investment that strengthens Welsh supply chains
That is what success should look like. But to deliver it, we still need clarity on some fundamentals.
Key questions for a WDA 2.0:
Mission and focus: What is WDA 2.0 for — and what will it deliberately not do so it can stay focused? This can’t be a bucket for solving everyone’s take on Wales’ economic challenges.
Funding: Will its budget match the scale of the ambition, or will we ask a new agency to deliver the same outcomes with today’s much thinner resources? By our reckoning, the old WDA had a budget nearing half a billion pounds when you adjust for inflation. That’s the equivalent of WG’s entire economic development budget today.
Fit with the existing landscape: How will it complement Business Wales and the Development Bank — not duplicate or blur their roles? Both organisations need their purpose refreshed and budgets reviewed, particularly with a new agency in the room.
Governance and independence: Will it be genuinely arm’s length, with cross‑party support so it can deliver beyond electoral cycles? This is critical if it’s going to make an impact. It needs to be accountable to the Senedd as a whole and not just the next WG.
Data and evaluation: How will we finally build the economic intelligence Wales needs to measure progress and steer strategy? Wales’ economic data is weak at the moment, and we have few economic development milestones or targets at which to aim.
Get this right, and WDA 2.0 could become the engine that grows Welsh firms, boosts productivity, and anchors value here in Wales.
Get it wrong and we’ll be doing the same things, with fewer resources but with a different logo on the top.
Now the task is to design an institution for the future — not a return to the past, but an agency firmly fixed on the Welsh economy we want to build.
