The real reason Industry Wales is closing

When we found the news of our organisation closing on the front page it was a surprise as we are a very small organisation dissolved as part of a cost-cutting exercise at the Welsh Government - says Dr Jenifer Baxter, CEO of Industry Wales.

What made this more surprising was that no journalists had contacted us prior to publication of the story, and that the assumptions implied are completely wrong.

This opportunity does, however, give us a platform to tell everyone about what has actually been happening at Industry Wales.

In recent days, several articles have appeared suggesting that Industry Wales is being “scrapped” after a “deplorable” situation surrounding the auditing of our accounts. It sounds dramatic, doesn’t it? Fortunately, it’s also wrong.

Let me explain what’s really going on, because no one has asked us, the people involved, and who will at the end of this financial year lose our jobs.

Two Stories, Not One

The first story is the audit disclaimer we received back in March 2024.

The second is the Welsh Government’s recent decision to dissolve Industry Wales.

They’ve been mentioned in the same breath, but they’re not connected.

The Welsh Government’s own statement (2 October 2025) made it very clear:

“The economic landscape has changed considerably since Industry Wales was formed in 2013. With the organisation’s remit due to end in 2026, the decision on future industry support will be for the next government.”

In other words, this is a ministerial decision, and we acknowledge that.

What Actually Happened with the Audit

Here’s the “exciting” bit (and I use that word loosely).

A few years ago as we came out of the pandemic, Industry Wales was awarded funding to deliver an innovation programme called BITES — Business Innovation and Tourism Escalator Scheme.

A project designed to support small food and drink manufacturing businesses in Wales to increase production through digitalisation and automation.

Through that programme, we helped a food manufacturer in North Wales improve efficiency and outputs by installing a brand new, automated packing line. This packing line was designed and built right here in Wales.

That project turned out to be a success story: it helped the business expand, hire ten new staff, and it even went on to win a major innovation award.

The problem?

At the time of our 2023/24 audit, the packing line hadn’t been formally valued as, in our view, it was still under construction and was recorded in our accounts as such.

Audit Wales concluded that, because its potential value might exceed our entire annual income and capital combined, that the capital assets part of our accounts  was “pervasive.” This meant that the total potential amount of that asset on our books could have been more than all our other revenue and assets put together.

It didn’t mean money was missing, misused or mismanaged — just that our books couldn’t be signed off until the valuation was complete.

As soon as we got a valuation, the issue was resolved.

Owning the Issue and Fixing It

However, when I became CEO, it became clear that correct procedures hadn’t been followed at the time. That’s not something anyone likes to discover, but the important part is what happens next.

We disclosed the problem ourselves, worked with Audit Wales and Welsh Government to fix it, obtained the valuation, and transferred the asset to the company it was meant for in the first place.

We also introduced stronger governance and financial assurance systems to make sure it never happens again.

As a result, we’re now expecting a clean bill of health when the 2024/25 accounts are finalised in November.

That’s what accountability looks like.

The Money Question

Much has been made of the “£10 million” Industry Wales has received in funding.

That figure covers twelve years of operation, during which we’ve acted as guarantor for four Wales-based membership bodies, providing core grant support that ensures companies developing in those sectors benefit from a Wales-focused membership organisation.

Our annual budget has averaged around £800,000 — making us quite possibly the smallest arm’s-length body in Wales.

The same applies to money paid to directors. The figures quoted in the media span more than a decade and a total of 28 directors. All payments to non-executive directors have been made in line with Welsh Government rules.

It’s standard practice, not a scandal.

On Transparency and Context

It’s hard to watch a technical accounting issue become front-page “news.”

It’s even harder when no one picks up the phone to check the facts first.

We’ve been entirely transparent throughout this process, working openly with Audit Wales and Welsh Government to resolve the issue.

The facts are on public record, but facts don’t travel as fast as headlines.

We’re not perfect, and we don’t claim to be. But we are accountable, and when we find something that isn’t right, we fix it. That’s what’s happened here.

Looking Back, Looking Ahead

While the decision to dissolve Industry Wales is a ministerial one, and one we fully respect, it doesn’t erase the impact this organisation has had over the past twelve years.

Since 2013, Industry Wales has worked alongside our forums — Aerospace Wales, the Welsh Automotive Forum, Technology Connected and, more recently, Net Zero Industry Wales — to help champion Welsh manufacturing and connect businesses with opportunity.

From mobilising PPE and ventilator supply chains during the pandemic, to founding the South Wales Industrial Cluster, and campaigning for support to reduce energy costs for businesses. We’ve supported companies after the closure of Tata Steel Port Talbot, contributed to specialist work reviewing apprenticeship frameworks, and advised on supply chains for floating offshore wind, advanced nuclear and defence.

The people here have played a real part in helping Welsh industry grow, adapt and thrive.

As we move into this next chapter, our focus is on collaboration and continuity. We’ll continue working closely with the Welsh Government, our forums, staff and partners to ensure a smooth transition and that industry in Wales continues to have a strong, informed voice.

To everyone who’s worked with us, challenged us, and supported us over the years — thank you. It’s been a privilege to serve Wales.

If anyone wants to talk to us — about the audit, our work, or the future — our inbox is open, our phone lines work, and we’re easy to find (judging by the amount of spam we receive).

Transparency isn’t just a slogan — it’s how we operate.

 Diolch yn fawr,

Jen

Dr Jenifer Baxter

CEO, Industry Wales