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Welsh Government set to scrap Industry Wales

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THE WELSH Welsh Government has announced it will axe an industry body after a damning analysis from the auditor general for Wales uncovered accounting irregularities.

Economy secretary Rebecca Evans confirmed Industry Wales, which runs forums in the aerospace, technology, net zero and automotive sectors, will be dissolved next year.

The decision comes after Adrian Crompton, the auditor general, took the “highly unusual” step of disclaiming his opinion on Industry Wales’ 2023/24 accounts.

He warned of a breach of procurement rules and insufficient evidence for more than £1m in assets, including an £836,000 packing line that may have a “significantly impaired value”.

Writing to the Senedd’s public accounts committee earlier this year, the auditor general said: “The impact is so significant and pervasive… that I am unable to give an opinion at all.”

Mr Crompton noted a potential conflict of interest, saying the owner of the company awarded the packing line contract was a former director and senior adviser to Industry Wales. According to an audit report, the adviser was excluded from discussion of the decision.

The auditor general’s findings were raised in the Senedd in March when former Tory group leader Andrew RT Davies described the situation as deplorable.

In response, First Minister Eluned Morgan told the chamber her understanding was the packing line was part of a rapid response to the pandemic. She said Industry Wales had implemented all the recommendations of the auditor general’s report.

But her economy secretary has now confirmed the firm – which is wholly owned by ministers – will be dissolved after March 2026 following a separate, government-commissioned review.

Ms Evans accepted the review’s findings in full, concluding “it is time for us to consider a different approach” in a written ministerial statement on October 2.

Industry Wales – which is the trading name of Sector Development Wales Partnership Ltd – has received about £10.6m from the public purse and paid out £1.1m in directors’ remuneration since being set up in 2013, according to its accounts.

Ms Evans wrote: “The economic and financial situation has changed so dramatically, the review concluded the status quo could not be maintained.”

She added: “The Welsh Government will, at the end of the current term of government agreement, remove itself as sole guarantor for Industry Wales and dissolve the company.”

Ms Evans stated the Welsh Government would work with the four industry forums to decide their future over the next six months. Options include transferring them to a new parent body, providing direct grant support or stopping funding if they are self-sufficient.

She said: “These specific plans are already under way… and we remain committed to receiving unfettered sectoral advice from membership organisations going forward.”

“I want to place on record my sincere thanks to Industry Wales, to the chair, Professor Keith Ridgway, and the forums and their respective boards and board chairs (past and present).

“I am very aware of the impact that this decision will have.

“We will work closely with Industry Wales, the forums and stakeholders to put in place the appropriate support, without limiting options for a future government.”

 

Business

Call to convert former farmhouse/guesthouse to housing approved

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A CALL to convert a former Pembrokeshire farmhouse and guesthouse into housing units has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Dan Hildebrand, through agent GMW Design, sought approval for the subdivision of Torbant Farmhouse, Croesgoch, near Haverfordwest, to form four residential units.

A supporting statement through Johnston Planning on behalf of the applicant and agent said: “The property has historically been run as a successful guesthouse for a number of years but has recently come under new ownership. The new owner wishes to maximise the potential of the existing residential floor space through the subdivision of this generous property into four units.”

It added: “Whilst the intention is to utilise the subdivided property for residential purposes due regard is given to the 2022 changes to the use class order which in effect created new residential classes for new development in an effort to control unrestricted holiday uses in sensitive locations.

“As such a ‘free use’ is sought within use classes C3 (use as a sole/main residence), C5 (use as otherwise as a sole/main residence) and C6 (use as a commercial short term let).

“These proposed uses, which are considered to be reasonable and to be fully compliant with current planning policy (especially when one has regard to the existing use) will provide the owner with flexibility in terms of proposed occupation. Ensuring full and meaningful use of the property in the future.”

It said the property was once part of Torbant Farm, now been broken up into a number of separate properties, including Torbant Caravan Park immediately to the north.

It added the works to the property “are minimal and will have a negligible impact externally,” adding: “Internally whilst the layout will alter marginally no structural works to the property are proposed.

“In character terms therefore, there will be no discernible physical impact either to the dwelling itself or to the wider locality.”

Six objections to the scheme were received, raising concerns including harm to visual and residential amenity, ecological impact, infrastructure constraints, and claimed inaccuracies in the submitted application, as well as the application overstating available parking space “which would encroach onto shared access areas, causing obstruction and conflict between users”.

An officer report recommending approval said the scheme was amended to move car parking provision within land under the applicant’s control.

It concluded the scheme represented “an efficient use of the existing building stock,” and it “would not result in any external alterations to the host building and would not give rise to unacceptable harm to the character or appearance of the building or its wider rural setting nor the residential amenities of neighbouring occupiers”.

The application was conditionally approved by county planners.

 

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Council-owned housing at former Milford Haven social club approved

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PLANS to convert a former Pembrokeshire town centre social club into council owned social housing have been given the go-ahead.

In an application to Pembrokeshire County Council, the authority itself, through agent KEW Planning, sought a change of use of the former Manchester Club social club, Fulke Street, Milford Haven to seven social rented residential units.

The Manchester Club public house/social club closed in March 2024 due to the cost of operations rising to be more than the monetary value that the club delivered, remaining vacant since this time, and was marketed for sale before an offer from the council was accepted.

The council scheme will provide five one-bed flats, one two-bed, and one studio flat; an amended scheme from discarded initial options which included one for 12 apartments and two studio flats. The scheme revised to restrict proposed alterations to the existing building to a minimum.

The proposal includes the demolition of the single storey garage to the front, and a single-storey extension at the rear, which will allow a communal amenity area.

A supporting statement said: “The vision for this project is to provide social housing to address housing stock shortages and to give a new life to a vacant building in a central location of the town. The property will be rented to mixed aged tenants, with PCC as the corporate landlord.”

An officer report recommending approval said the site had been marketed since 2024 at £170,000, with a £150,000 offer made but was unable to be proceeded with, the price later reduced to £150,000, three offers later received including £140,000 from the council, which was accepted in April 2025.

“For the two years that this property has been marketed the market response to the property has been limited with no viable interest in retaining the building for its existing community facility use,” the report said.

It concluded: “The loss of the former community facility has been robustly justified in accordance [with planning policy], and the scheme would deliver social and economic benefits through the provision of additional housing and the re-use of a vacant building.

“The proposal would enhance the visual appearance of the site, provide an acceptable standard of residential amenity for future occupiers without undue harm to neighbouring properties, and would not give rise to unacceptable impacts in respect of highway safety, drainage, biodiversity or the historic environment.”

The application was conditionally approved.

 

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Wales unemployment close to UK rate as ministers promise productivity push

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WALES’ unemployment rate is broadly in line with the UK average, according to the latest labour market figures.

The Welsh Government said figures from the Annual Population Survey showed unemployment among people aged 16 and over in Wales at 4.5%, compared with 4.4% across the UK.

Ministers said Wales’ employment rate was also “relatively close” to its all-time high, but acknowledged that official labour market data should be treated with caution because of continuing concerns over reliability.

The figures come as the newly elected Welsh Government seeks to put productivity at the centre of its economic agenda.

A Welsh Government spokesperson said: “As a newly elected Government we are committed to driving investment, innovation and higher productivity across Wales.

“We have announced a National Productivity Goal to close the gap with the rest of the UK and help unlock the full potential of the Welsh economy.

“By focusing on productivity, we will deliver more jobs, higher pay, stronger businesses and thriving communities.”

The Government says the new goal will help shape the work of its planned Welsh innovation and development agency, including how it supports businesses, develops skills and invests in the wider economy.

However, ministers also said Wales’ labour market appears to be following similar trends to the UK as a whole.

They pointed to ongoing work by the Office for National Statistics to improve the quality of Labour Force Survey data, saying the figures should be read alongside other labour market indicators to get a clearer picture.

The Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, is seeking a meeting with the ONS to discuss the reliability of labour market data for Wales.

 

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