Now, Wales possesses natural resilience. Welsh businesses have stepped up and developed a remarkable capacity to adapt to the toughest of challenges. It’s this spirit that has kept so many businesses afloat during the recent uncertainties. In stark contrast with the UK Government, Wales has a stable, mature Government and a network of social partners that help us to make the right calls. The summit earlier this month was a prime example of team Wales working together to quantify problems and to propose solutions.

I will be meeting key stakeholders once more in early November to take their feedback on the UK Government’s attempts to stabilise the economy following the Halloween budget. Hopefully, we can then assess with more certainty the range of support required here in Wales and the practical levers available to us if the UK Government goes ahead and further cuts the Welsh Government budget.

But, today, I want to mark the fifth anniversary of the Development Bank of Wales, the UK’s first regional development bank, and to speak to my ambitions for its future. The development bank has grown to manage funds in the order of £2 billion, and in so doing has become a key part of the economic development and finance ecosystem here in Wales. The bank plays a pivotal role in financing businesses who have sound business plans but struggle to access finance from the market.  It does this by working hand in glove alongside the advice and support provided by Business Wales and through very close ties with mainstream banks and other co-investors, where it often forms only part of the total investment package. By addressing market gaps, the bank allows businesses to access the finance that they need. Over its first five years, the bank has exceeded investment targets, delivering an economic impact of £1.2 billion. Overall debt and equity investment in 2021-22 reached £110 million against a target, set in 2017, to reach £80 million by that year.

As a result of the UK Government taking direct control over the promised replacement for EU-funded programmes, the funding landscape is now far more complex than it was five years ago. The fact that we have our own now well-capitalised development bank here in Wales means we can maintain capability and stability to help drive economic development.

In planning for the next five years, we have taken into account this changing funding landscape, which includes new funds from the Cardiff capital region and the British Business Bank. Together, these funds have the potential to bring around £35 million a year of additional capital into Wales. That is a welcome development, which, when combined with the targeted annual investments by the development bank, which will rise above £120 million a year over the same period, will help to ensure that more businesses in Wales will have access to finance. The development bank will work closely with them to ensure that their investment from the Cardiff capital region and the British Business Bank is complementary and supports businesses across our country.

In our programme for government, we set out our ambition to increase the use of equity stakes in business support. Equity investment can support innovative businesses with growth potential, creating high-value jobs and driving exports. Equity stakes bring not only finance resource but also expertise to businesses, and can be a powerful catalyst for long-term economic growth.

To date, our development bank has invested £78 million of equity into Welsh businesses, which, alongside other investors, has helped them to raise over £200 million. I have tasked the development bank to pursue a total equity investment target of at least £100 million, which, alongside private sector co-investment, can deliver over £250 million of capital to innovative businesses—an injection of capital that will help to create new jobs, expand new growth sectors in our economy, and help position Wales for the future.

This new equity investment will be even more targeted, with other Welsh Government support, from business advice to innovation support, making it a complete and best-in-class offer. Going forward, businesses receiving equity investment will have unparalleled support through their investment journey. We believe that this will make a difference in supporting exciting new technology companies to take their product from early concept through to market, ambitious businesses to target high growth, and management teams wanting to buy existing businesses and keep them in Welsh ownership. And, in fact, only this lunchtime, before attending First Minister's questions, I attended an event chaired by Huw Irranca-Davies this lunchtime with the Centre for Local Economic Strategies. And for those who are interested, also in attendance was Huw Lewis, once of this parish, in his new role.

Of immediate concern to businesses are the challenges driven by increasing costs for materials, wages and, of course, energy. To help businesses, the development bank will continue to offer flexibility to its customers through forbearance and, where appropriate, repayment holidays. Whilst interest rates on development bank loans are fixed at the point of issue—that protects those customers from the current volatility—we also know rates are not the only issue, and businesses can be confident that the bank is committed to working with them through these difficult times.

The development bank has a major role in supporting business transition on an 'invest to save' principle and already has funding in place to support businesses on their journey to net zero. Right now, the bank is fast-tracking development of a new scheme that will allow businesses to take on borrowing to fund capital investment that delivers on decarbonisation. It will aim to offer more flexible repayment terms, attractive interest rates and other support, such as help towards consultancy costs, as part of this offer to enable businesses to take advantage of current generous capital allowances and to ensure that they are confident that the technologies and solutions being adopted are right for them. I am asking the development bank to do all they can to accelerate their plans so that delivery can begin this year, delivering a double win for eligible businesses by helping them cut future energy costs and progressing our shared ambition for decarbonisation.

The Development Bank of Wales is a national asset. It continues to help businesses across Wales survive, grow and prosper. I am proud of what it has achieved to date and have confidence in the plans it has to deliver on my ambitions for the future of the Welsh economy.