MS, Cabinet Secretary for
Economy, Energy and Planning: Today, we open a six-week public
consultation on proposals for the new Local Growth Fund in Wales
to ensure that we are ready to implement this fund from April
2026.
The Local Growth Fund will invest £547m of UK Government funding
in Wales over three years. For the first time since we left the
EU, decisions on these important regional economic development
funds will return to the Welsh Government.
The proposals in the consultation build on evidence gathered
through previous co-produced work with partners on a Framework
for Regional Investment in Wales, our projects with the OECD on
regional economic development, and input from local government
and the Regional Investment Steering Group chaired by MS.
The proposals also draw on an up-to-date analysis of
socio-economic evidence and lessons learned from previous funding
programmes, including those from Senedd Committees.
The consultation document,
which is available here, reflects our key objectives for this
funding: to raise productivity and tackle economic inequalities.
It aligns with the Welsh Government's Economic Mission and with
the UK Government's growth mission and Industrial Strategy.
The consultation document seeks views on the objectives we should
prioritise for investment from those identified in different
priority areas:
-
More productive and competitive businesses
– including a focus on tackling barriers to
growth for firms and social enterprises, such as exporting or
expansion and access to finance, increasing RD&I investment
and knowledge exchange, and taking advantage of opportunities
in high growth sectors such as AI, cybersecurity, and digital
transformation.
-
Supporting people into work and increasing
skills – including a
focus on increasing economic activity, support for in-work
progression of under-represented groups, improving skill
levels, and support for demand-led skills in high growth and
regionally important sectors.
-
Green infrastructure and energy
efficiency – including a focus on increasing
renewable and low-carbon energy generation, low-carbon
transport and digital connectivity where there is added value,
and capital investment to tackle fuel poverty and improve
energy efficiency in housing.
-
Local infrastructure driving regional
economies – including
a focus on local infrastructure,
including heritage, culture and tourism assets.
The consultation also seeks views on the delivery approaches for
the Local Growth Fund, including national, regional, and local
approaches, and the transition from the Shared Prosperity Fund.
We will be hosting four regional events to discuss proposals with
Welsh partners. Details will be available on the Welsh Government
website shortly.
We will continue to engage directly with local government to
support a smooth transition, and with the Regional Investment
Steering Group to inform the development of proposals.
We intend to submit an Investment Plan to the UK Government as
soon as possible next year so that funding can be transferred to
the Welsh Government.
I will keep the Senedd updated on the development of the Local
Growth Fund as work progresses over the coming months.
