£500m Local Growth Fund unveiled to boost Welsh economy
£500m Local Growth Fund unveiled to boost Welsh economy
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A new £500 million-plus Local Growth Fund has been announced to drive job creation, boost productivity, and support business innovation across Wales.
The fund, jointly developed by the Welsh and UK Governments, will replace EU structural funding and aims to return decision-making on regional investment to Wales — fulfilling a UK Government manifesto commitment.
Under the new agreement, a framework has been established to guide priorities and spending processes, while the Welsh Government will lead the delivery plan. Local authorities and regional partners will play a key role in identifying projects and determining how the money will be invested. A consultation on how best to use the funding is expected to launch later this month.
The Welsh Government said it wants to ensure the fund delivers long-term benefits by:
- Supporting people into work and helping them gain new skills and qualifications for better-paid roles.
- Creating and growing Welsh businesses, particularly in high-growth sectors such as health and bio-tech, fintech, low-carbon energy and artificial intelligence.
- Tackling infrastructure barriers to growth, including access to key sites, renewable energy generation, energy efficiency, and sustainable transport.
First Minister Eluned Morgan described the Local Growth Fund as a “significant opportunity” to help Welsh businesses innovate and expand.
She 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 the UK Government’s investment would be central to boosting economic activity and supporting job creation.
She 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 the new fund would play a vital role in tackling regional inequalities and improving productivity.
She added: “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 how the fund will be allocated and the types of projects eligible for support are expected to be announced in the coming months.
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