Autumn Statement – £120m funding for North Wales Growth Deal

The £120 million funding announced by the Chancellor of the Exchequer Philip Hammond for the North Wales Growth Deal has been welcomed in some quarters, although the Welsh Government Finance Secretary Mark Drakeford said ‘it falls some way short’.

The six North Wales Councils formally submitted a Growth Bid to the UK and Welsh Governments.

The total cost of investment proposed is nearly £700m, with £126m of direct private sector contributions and £223m of contributions from various partners. The Ambition Board is seeking £338m of capital funding and £8m revenue funding from the Growth Deal.

The Bid is made up of 16 projects in these areas: Land and Property Development, Smart Access to Energy, Adventure Tourism, Smart Technology and Innovation Hubs, the Regional Growth Business Fund, Pathways to Skills and Employment, Skills Centres of Excellence, Digital Connectivity, and Strategic Transport.

The ultimate aim is to create a ‘Smart, Resilient and Connected’ region focused on increasing the value of the North Wales economy from £13.6billion in 2016 to £26billion by 2035.

North Wales Economic Ambition Board responded to the Autumn Budget Statement saying:

Confirmation of UK Government support for the North Wales Growth Bid means we can now enter into the final stage of discussions to secure the best possible Growth Deal for the region.

Today’s announcement gives us a strong basis on which to move forward and attract extra funding from the Welsh Government and additional sector programmes and finance streams.

After so many months of planning by our partners we are of course delighted to have achieved this acknowledgement and recognition of the hard work which has taken place, and can now make firm plans to implement the strategy developed by the Board.

The Growth Bid is just part of the overall Growth Vision for North Wales, but a vital part that will kick-start a new phase of economic prosperity and build on the incredible industry, skills and talent we have on our doorstep, world-leading businesses and organisations that will benefit from today’s decision.

We are on track to create thousands of jobs and vastly improve infrastructure across all six counties under nine key programmes in a range of areas, from transport and adventure tourism to digital connectivity, smart energy and land and property.

We will now look to put a dedicated team in place focused on leading the priority projects to fruition, alongside our partners in local government, education and the private sector.

We are ready for the hard work that lies ahead in negotiating the best possible Growth Deal, to fulfil our aim of delivering a Smart, Resilient and Connected region. We expect the final Deal to be in place later in 2019.”

Ben Francis, Federation of Small Businesses Wales Policy Unit Chair, said there was an urgency now to get the deal pushed forward:

“We welcome the news that the North Wales Growth Deal has been given a vote of confidence and £120 million in this budget.

The deal is the culmination of years of work between businesses, local authorities and stakeholders who have worked together to ensure that the region is given the support it needs to deliver a thriving, ambitious economic deal.

There is now an urgent need to take this deal forward, to be signed by the partners involved so that it can deliver for the local economy.”

Delyn MP David Hanson welcomed the funding but said it fell short of expectations:

“The funding for the North Wales Growth Deal is welcome, but the devil is in the detail. Local councils, businesses, Assembly Members and MPs have worked hard to get support from UK Government. After over three years the £120m is welcome, but still under performs on expectations.”