Why Wales?
Wales as a business and investment location has much to offer. With quality infrastructure and communications networks and a well-educated, skilled workforce, it offers an excellent base for access to the UK and European markets. Wales has a population of approximately three million and forms part of the United Kingdom with England, Scotland and Northern Ireland. The majority of the population is concentrated in the south of the country. In 1997 the people of Wales voted in favour of establishing a National Assembly and devolution occurred in 1999. The National Assembly for Wales meets in Cardiff, the capital city, which is located in the southeast of Wales.

The Welsh economy was traditionally built on manufacturing industries such as coal and steel but over the last 30 years, Wales has diversified and in accordance, so has the manufacturing sector. Manufacturing employs a fifth of the workforce and contributes £7.5bn of added value to the economy.

Infrastructure
Infrastructure in Wales is very well developed and maintained and provides easy access to the country’s main industrial and commercial centres via motorways, dual carriageways and rail links. The maximum speed limit on motorways and dual carriageways is 113kmph (70mph), while in towns and cities, the limit is 48kmph (30mph). The average journey time from Cardiff to London is just 2h57m, making business travel easily accommodated. Wales is also well served by passenger trains throughout the country and rail freight depots in Cardiff, Swansea and Holyhead provide containerised delivery facilities. In addition, Cardiff is the main rail depot in Wales for European and world markets. The major international airport in Wales is Cardiff International Airport, with frequent flights to popular connecting cities such as Dublin and Paris. Approximately two million passengers pass through the airport annually.

Education and workforce
Wales has eight key universities with a combined student population of more than 130,000. These include Bangor University in North Wales and Swansea University and Cardiff University in the south of the country. Qualifications of the workforce are important for any employer and these are identified for the working age population in Wales at three levels: GCSE, A-Level and degree. At all three levels, Cardiff and Swansea exceed both the Welsh and British averages. At degree level, Cardiff boasts one of the highest percentages of graduate calibre personnel in the UK. The universities also engage in industry-relevant research. For businesses looking to maximise their opportunities, there is a well-educated, relatively low-cost workforce (by UK standards) to draw on. 

Taxation
The taxation system in Wales is the same as in the UK as a whole. The UK (and Welsh) corporation tax rate currently stands at a maximum of 28%, which compares favourably with any of the major economies in Europe. It is payable on the profit made by a UK registered company. For companies with profits of up to £300,000, the rate of corporation tax is 21%. For those declaring profits from £300,000 to £1.5m, the tax rate scales between 21% and 28%. And for businesses with profits over £1.5m, the rate is 28%. The standard rate of Value Added Tax (VAT) in Wales is 17.5%, which applies to most sales of goods and services.

Communications networks
In recognition of the importance of ICT in driving and growing the economy, the Welsh Assembly Government has invested significant resources in telecommunications and their uptake, which is good news for businesses. This government focus includes a direct intervention in the market – FibreSpeed – that is intended to boost broadband service innovation, broadband speeds and competition. FibreSpeed was devised to combat high broadband pricing and low rates of broadband service in North Wales. Throughout Wales, high speed, competitive broadband networks service all major cities, towns and commercial centres. Providers include BT, Virgin Media, AOL and TalkTalk. Mobile phone coverage in the country is also very good, with almost 100% availability of a mobile service from at least one mobile operator.

Finance
As part of the UK, Wales (and business in Wales) is well positioned within the European Union and global markets. The Welsh Assembly Government aims to give support to both home-grown and foreign-owned companies. This support is provided in many areas, from research and development to capital expenditure and employment. A grant scheme – the Single Investment Fund (SIF) – is available to eligible businesses for new investment projects and retaining existing business in Wales. The scheme is operational throughout most of the country and ease of access is a main characteristic, with one application process for grant aid regardless of which area the funds will be directed to. Aid amounts vary between 10% and 30% of qualifying project costs, but this number can increase by 10% for medium companies and 20% for small enterprises. 

Key sectors
More and more, Wales is becoming a knowledge-driven economy and this is reflected in the range of inward investment ventures. The below table gives an overview of the key industry sectors and the number of people employed within sample companies.

Lifestyle
Wales boasts some of the most spectacular scenery in the UK, including the Gower peninsula and its stunning coastline, which is located close to Swansea. The peninsula was the first area in Britain officially designated as an ‘Area of Outstanding Natural Beauty’. It is not the only impressive sight in the country though: there are four more Areas of Outstanding Natural Beauty within the Welsh borders, as well as three National Parks and over 400 castles. Quality housing is affordable, especially in Cardiff when compared with other capital cities. In terms of cultural and sporting events, Wales has a rich tradition and top-class facilities to accommodate all interests. Rugby is the national game of Wales, with home games taking place at the Millennium Stadium in Cardiff. Cardiff Bay is also home to the Wales Millennium Centre, a world-class theatre that is the base of the Welsh National Opera.