Communities in every corner of Wales will benefit from a new
fund, worth more than half a billion pounds, to create jobs and
grow productivity across Wales.
The Local Growth Fund replaces money that used to come from the
European Union.
Decisions about how the money will be spent will return to Wales,
honouring the UK Government's manifesto commitment to restore
decision-making on money that previously came from the EU.
The Welsh and UK Governments have agreed a framework which will
set priorities and processes for allocating the funds, with a
delivery plan developed and led by the Welsh Government.
Local authorities and other partners will have a key role in
deciding how the funding is spent. Later this month, the
Welsh Government will consult on the best way to use this funding
through a consultation.
The Welsh Government is keen to understand how it can best:
- 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
- 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
- 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.
First Minister 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 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, , 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.
Notes to editors
The Local Growth Fund, supported by the UK Government, is worth
more than £500m to Wales over three years starting from April
2026.
For interview bids for the First Minister, please contact
corporatepressteam@gov.wales
