Wales loses billions in funding and faces higher trade tariffs

Wales' economy has been hit by Brexit, with EU markets now accounting for about 60% of its exports and a loss of convergence funding that previously supported the region as one of the poorest in Europe. The UK government has not fully compensated for the shortfall, and recent trade deals give EU products lower tariffs than those from the UK, such as a 22.5% duty on a Welsh wool jumper versus 10% on an EU‑made one.

Analysts note that Wales receives only around 3% of UK Research and Innovation (UKRI) spending – £168 million in 2023‑24, or £53 per person, compared with £134 per person across the UK. If its share matched its population share, Wales could gain an additional £500‑600 million over four years. Further financial support could come from the British Business Bank and UK Export Finance, but the region still misses out on billions of pounds each year, prompting calls for a more equitable distribution of UK‑wide research, investment and export assistance, especially under the new economic focus announced by Andy Burnham.