Business Support Review: Annex C - terms of reference

A number of proposals have been made in various quarters for reforming the model for Business Support in Wales. The Cabinet Secretary for the Economy Energy and Planning (CSEEP) has considered these ideas, with regard to the strength of evidence of the extent to which current arrangements could be improved.

Everyone wants to see sustainable businesses creating more growth and investment, but that of itself is not evidence that a fundamental reconstruction of how Business Support is delivered is necessary. CSEEP is not convinced that any one alternative model could confidently be expected to bring about an improved service for anything like an equivalent cost. Comparison is often made with historic support such as the WDA without recognition that the level of expenditure was multiples of today's support.

That said, there is clearly room for continuous improvement and some consistent themes emerge from the debate, including for example a consensus that the landscape of Business Support can be confusing to international investors.

Given that the Strategic Case for extensive change still needs to be clarified and given the limited time to deliver change before the 2026 general election, this review is to be focused on what can be done quickly, effectively and with a minimum of disruption to deliver on this Government’s priorities and to reflect emerging economic conditions. The review should have regard to the possibility that more fundamental reform should be considered in due course and lay the foundations for such consideration, but specific recommendations in that regard are not expected.

Specifically, the review should include:

• analysis of what Wales gets for our current Business Support activities, and whether those results are aligned to areas of the economy that offer the best opportunities and the greatest needs, indicating whether we are making the optimum use of resources.
• recommendations on the relative weight of resources that we put into various sectors, including the rationale for how resources should be allocated, and options for change for CSEEP to consider.
• the impact of UK government intervention in Business Support in Wales, the extent to which it duplicates existing offerings and how our respective offerings should complement each other in a visibly consistent and clear manner.
• signposting and co-ordination of the overall offering in Wales in respect of Business Support, including all branches of the Welsh Government and its arm’s length bodies and its delivery partners and
• opportunities for efficiencies that can be ploughed back into support for the Welsh economy.

The review will of course have regard to the impact and evaluative data available including customer satisfaction and will undertake the normal impact assessments appropriate to any significant shift in priorities, including the impact on rural economies and communities, the impact on groups with protected characteristics and the Welsh language.

The review will be led from the EET Operations Team to provide oversight, co-ordination and organisational support. The expertise required for the review lies primarily, but far from exclusively, in the EET group and the review will be expected to draw on information, advice and opinions from across Welsh Government (Business Wales etc) and its ALBs including the Development Bank of Wales. Work has already been done internally in this space, both in EET and DBW for example, which we should build on.

The review will also take into account evidence from existing and anticipated reports and papers from external sources, within the limits of noted above. Such evidence includes for example papers from the Welsh Language Commissioner, Economic Intelligence Wales, Cardiff University impact assessments, the OECD, the Federation of Small Businesses and professional bodies.

The review should be overseen if possible using senior expertise already within the organisation. A non-executive director with appropriate experience might be a suitable source of top level support and expertise.

Additional resources for this review are not being made available at this stage. This review is in the nature of the continuous improvement programmes to which all Welsh Government functions should subject themselves. That said, if detailed planning indicates that specific support is required which cannot be accommodated within existing budgets, then CSEEP will be willing to consider such cases.

The review should report to CSEEP in September 2025, with a view to implementing recommendations by the end of the calendar year. Recommendations which cannot plausibly be implemented within that timeframe are welcome but should not be the principal focus.

Interim reporting to CSEEP on work under way and emerging findings should be put in place as part of the project plan for the review.

May 2025