South West and South Wales Economy Poised for Rapid Growth Over the Next Five Years, New Report Reveals

Commissioned by the Western Gateway and conducted by Hardisty Jones Associates & Oxford Economics and EY, these reports offer a contemporary analysis of the region’s economic strengths as part of the initiative to develop a “Plan for Sustainable Growth” for both areas.

The findings estimate that South Wales and Western England will experience annual growth of 1.4% between 2024 and 2029, surpassing the growth of other UK regions. This robust growth is attributed to the area’s skilled workforce, leading industries, and high-tech businesses, with strong sectors in cyber, green energy, aerospace, creative, and fintech.

Furthermore, the area is recognised as a significant exporter, outperforming other parts of the UK, and contributing over 6% of the UK’s total energy capacity.

However, the reports also highlight substantial underinvestment in the region. They estimate that companies in the area are missing out on £3-9 million in private sector investment per business each year on average, compared to other parts of the UK.

The reports were unveiled yesterday at a launch event hosted by the Western Gateway at Airbus’s Filton base in Bristol. IoD members were invited to attend this launch event and also participated in a webinar. This event is part of the lead-up to the 2024 Convention for the Western Gateway, presented by SSE Energy Solutions, on 17th October, where the Plan for Sustainable Growth will be presented.

The Western Gateway, a pan-regional partnership for South Wales and Western England, brings together local leaders, businesses, and academics to drive economic growth and support efforts to achieve net zero.

Sarah Williams-Gardener, Chair of the Western Gateway, stated: “Here at the Western Gateway, we are home to collaborative communities with a strong story to tell regarding our potential to deliver for the UK. Despite significant underinvestment, this report highlights that South Wales and Western England are projected to grow by 1.4% per year between 2024 and 2029, making us the most likely area to grow outside of London over the coming years.

“Our cross-party group of leaders is prepared to work with colleagues nationwide, alongside businesses and our esteemed universities, to drive our future economy and contribute to the UK’s new National Mission for Growth.

“To learn how you can contribute and be part of our Plan for Sustainable Growth, we invite you to join us on 17th October at our 2024 Convention for the Western Gateway.”

Cllr Mark Hawthorne, Vice Chair of the Western Gateway and Leader of Gloucestershire County Council, added: “These reports illustrate the tremendous opportunity within our communities to drive many of the UK’s future industries while also underscoring the challenges we must address collectively.

“The launch is the latest phase in our ongoing collaboration with local businesses to find cross-political solutions for the challenges we face. We aim to decarbonise swiftly, create new opportunities for our communities, and enhance access for those at risk of being left behind.”

Jo Price, Nations Manager at IoD Wales, emphasised the significance of the Western Gateway for the region’s economic future: “The Western Gateway is a critical initiative for the growth and prosperity of South Wales. It offers a unique opportunity for our members to engage with key stakeholders, share their insights, and help shape the strategic direction of our economy. We encourage all IoD members to submit their feedback and participate actively in this collaborative effort to ensure we capitalise on the opportunities ahead.”

Read the reports here:

– Oxford Economics IER: The UK’s Future Economy

– EY’s Investment Flows and the Productivity Gap

For more information and to join the conversation, IoD members are encouraged to attend the upcoming events and webinars.