The UK and Welsh Governments have announced that half a billion pounds will be spent in Wales as part of the Local Growth Fund. The Fund is the funding programme established to replace money that used to come from the European Union before the UK’s departure.
Decisions about how to spend the money will be taken in Wales once again, following a promise in the Labour Party’s manifesto. A framework will set priorities and processes for distributing the money, with a delivery plan developed and led by the Welsh Government. There will also be an opportunity for local authorities and other partners to play their part in deciding how the money could be spent.
The Welsh Government will launch a consultation on how to spend the money later in the month. Amond the priorities that are listed by the Welsh Government for the consultation are the following:
- How to support people into work and help people gain new skills and qualifications to progress into higher paid jobs, so that a larger proportion of the population is employed
- How to help create and grow Welsh businesses in key sectors and boost investment in research and innovation, in areas such as health and bio-tech, financial technology, low carbon energy and AI
- How to address the issues that are holding back growth, such as the need for key sites and premises, renewable and low-carbon energy generation, energy efficiency, and low-carbon transport.
In a statement, First Minister Eluned Morgan said:
“Our new Local Growth Fund for Wales is a significant opportunity to support businesses and social enterprises to grow, export and innovate – particularly in high-growth sectors such as AI, cybersecurity and digital transformation. By tackling barriers like access to finance and encouraging investment in research and development, we can help build a more competitive and resilient Welsh economy.
Supporting people into work and helping them progress is vital to reducing economic inactivity. By aligning skills development with the needs of our regional economies, we can ensure people across Wales are well placed for the jobs of the future.
We’re keen to see a strong focus on green infrastructure, energy efficiency and local regeneration. We will encourage investment in renewable energy, low-carbon transport, and heritage. Tourism will be supported in a way that helps our communities thrive.
I’m very pleased that, following agreement with the UK Government, decisions on the priorities in this fund will be made here by the Welsh Government.”
Secretary of State for Wales Jo Stevens said:
“This more than half a billion pound investment from the UK Government is key to driving economic growth in Wales, helping to grow businesses and get more people into good well-paid jobs.
Decisions about how this money is spent are best made by people in Wales and we are working with the Welsh Government to achieve our shared priority of delivering growth, prosperity and opportunity across the country.
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:
This new fund will focus on supporting regional growth and productivity, as well as tackling economic inequalities.
We will now work at pace with our partners to prioritise investment in each region.”
More information on the funding will be announced in the coming months according to the statement.
