Half-billion-pound Local Growth Fund launched for Wales
Communities across Wales are set to benefit from a new Local Growth Fund worth more than half a billion pounds, aimed at creating jobs and improving productivity in every region.
The £500 million fund replaces previous European Union funding and marks a major step in returning decision-making on economic priorities to Wales.
The Welsh and UK Governments have reached an agreement on a joint framework that will set out how the money is allocated and monitored, with the Welsh Government leading on delivery.
Local authorities and regional partners will play a key role in shaping spending priorities. A public consultation is due later this month to help determine how the funding should be targeted.
According to the Welsh Government, the fund will focus on three main priorities:
Supporting people into work and helping them gain skills and qualifications to move into higher-paid jobs.
Helping Welsh businesses grow, innovate and export in sectors such as health and biotechnology, financial technology, low-carbon energy and artificial intelligence.
Tackling barriers to growth, including limited access to business sites, renewable energy generation, and low-carbon transport infrastructure.
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.”
Ms Morgan added that the fund would also “see a strong focus on green infrastructure, energy efficiency and local regeneration”, with investment in renewable energy, low-carbon transport, heritage and sustainable tourism.
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.”
Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, said the fund would focus on regional productivity and tackling inequality:
“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.”
Further details on allocations and regional priorities are expected to be published in the coming months.
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