Financial exports soar by 63.5% to £4.3bn

WALES has outpaced every other part of Great Britain in export growth for financial and related professional services, according to a new report by TheCityUK.

The report, Exporting from across Britain: Financial and related professional services 2025, reveals that exports from Wales surged by 63.5% in 2022, reaching £4.3bn—significantly ahead of the national average.

Across Great Britain, total financial and related professional services exports rose by 18.4% to £158bn, with nearly half (47%) generated outside London. Wales contributed 2.9% of the UK’s total financial services exports and 2% of the related professional services total.

The report provides a breakdown of 2022 data by region and nation, highlighting the growing contribution of areas outside London in strengthening the UK’s role as a global financial centre.

In terms of export destinations, 27% of Wales’s financial services exports went to the European Union, with the remaining 73% reaching markets across the rest of the world.

Tom Bray, TheCityUK Chair for Wales and Senior Office Partner (Cardiff) at Eversheds Sutherland, said: “It’s great to see such strong growth in Wales for financial and related professional services exports. Our skill and ability to provide high-quality financial and professional services plays an important role in driving growth in Wales, creating jobs and opportunities for communities across the nation.”

Anjalika Bardalai, Chief Economist and Head of Research at TheCityUK, added: “In 2022, Wales had an extremely strong year of export growth, albeit from a lower base than most regions. Nearly half of all UK exports in financial and related services now come from outside London, reinforcing the UK’s strength as an international financial hub and the importance of regional contributions.”

Policy recommendations

TheCityUK report also outlines a series of recommendations for industry, government, and regulators to support export growth in Wales and beyond. These fall under three key areas:

1. Improving access to trade opportunities

• Better coordination between UK government, devolved administrations, and investment bodies.
• Align local growth strategies with national trade goals.
• Launch a pilot national brokerage scheme to connect capital with investable projects.

2. Expanding global market access

• Finalise FTAs with Switzerland and India, ensuring better market access and digital trade provisions.
• Use talks with the Gulf Cooperation Council to promote regulatory cooperation.
• Strengthen regulatory dialogues with major markets like the US, EU, Japan, and Singapore.
• Replicate successful models like the UK-Switzerland MRA with other global financial centres.
• Encourage domestic and international investment into UK scale-up businesses.

3. Positioning the UK for future demand

• Make the UK a global hub for data, tech, and innovation.
• Establish the UK as the gateway for international investment.
• Focus development work on high-potential markets to maximise value.

The report underlines that Wales’s performance demonstrates the growing importance of the UK’s nations and regions in maintaining the country’s competitive edge on the global stage.

WELSH businesses are under increasing pressure to raise prices due to rising labour costs, according to the latest Quarterly Economic Survey by Chambers Wales South East, South West and Mid.

The first survey of 2025 reveals that 85% of businesses in Wales cite labour costs—including salaries, pay settlements and contractor fees—as a major pressure in the first quarter. This marks a rise from 81% in the final quarter of 2024.

Firms are also bracing for the impact of increases to the National Minimum Wage on 1 April and Employer National Insurance Contributions on 6 April. As a result, 44% of surveyed businesses said they plan to raise the price of goods or services by up to 15% to absorb these costs. A further 10% said they will increase prices due to the National Insurance rise alone.

Despite financial pressures, workforce stability remained strong. Seventy-six per cent of businesses reported no change in staffing levels over the past three months. However, the proportion of companies attempting to recruit fell to 40%, down from 45% in the previous quarter. Looking ahead, 58% expect their workforce to remain unchanged in the next quarter, while 23% plan to increase staff numbers.

The Q1 survey also reflected cautious optimism, with 39% of respondents reporting a rise in export sales and bookings. Additionally, 28% of businesses said they had increased investment in plant, machinery, technology and equipment. Nearly half (45%) forecast an improvement in turnover.

Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said:
“In our recent Quarterly Economic Surveys, including this survey for Q1, recurring concerns for businesses centre around labour costs and taxation. As changes are set to come into effect in April, businesses in Wales are having to review their goods and services prices, ongoing costs and recruitment plans.

“While there have been glimmers of optimism in exporting and some aspects of investment this quarter, firms will require reassurance and action from government to avoid stagnating and unlock growth. The Office for Budget Responsibility’s revised growth forecasts suggest that economic growth is less certain this year but will be a longer-term achievement.”

PEMBROKESHIRE COUNTY COUNCIL has confirmed that it will not be introducing a visitor levy during the current administration, offering a measure of certainty to the county’s tourism sector amid a period of major change.

The announcement was made by Cllr Paul Miller, Deputy Leader and Cabinet Member for Place, the Region and Climate Change, during the Visit Pembrokeshire Tourism Summit and AGM held at Folly Farm Adventure Park & Zoo on Wednesday (Apr 3).

Cllr Miller said: “We provide a fantastic tourism offer here in Pembrokeshire and it is an important part of the county’s economy.

“In addition to jobs, this administration’s approach is also about the year-round facilities and attractions that benefit local people too. We recognise the tourism landscape has experienced significant change, be that second homes legislation, tax changes, and we’re aiming to provide some certainty to the industry.

“We acknowledge it’s important to recognise there’s balance to be struck between supporting the industry and dealing with some of the challenges associated with peaks in season. Therefore, I’m confirming it’s not our intention to take forward the option of a visitor levy in Pembrokeshire during this administration.

“Like the hospitality and attraction sector across Pembrokeshire’s amazing tourism offer, I am looking forward to a great summer season for the industry.”

A visitor levy, sometimes called a tourism tax, has been proposed in other parts of Wales to help fund public services and infrastructure in tourist hotspots, but the move has been met with concern by many in the hospitality sector.

Emma Thornton, Chief Executive of Visit Pembrokeshire, welcomed the clarity. She said: “Visit Pembrokeshire welcomes this decision and thanks Pembrokeshire County Council for listening to tourism businesses.

“The cumulative impact of changes in Welsh Government policy affecting tourism businesses, alongside implications of the UK Government’s Autumn Budget, has resulted in real anxiety amongst the trade about the future.

“This decision provides some breathing space and certainty around the short to medium term, which is greatly appreciated.”

Visit Pembrokeshire is the official Destination Management Organisation for the county, providing tourism leadership, marketing, industry support and project delivery. Its base is at The Bridge Innovation Centre in Pembroke Dock.