The 海角视频 Government has announced a £500m growth fund for Wales. The Local Growth Fund is set to replace funding that previously came from the European Union.
It will see an investment of half a billion pounds over a three-year period, starting in April 2026. Unlike the Levelling-up funds under the previous 海角视频 Government, the power to allocate these funds will lie in Wales rather than England.
The 海角视频 Government said that this fulfils a manifesto pledge to return decision-making on funds to the country on money that previously came from the EU.
The Welsh and 海角视频 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
Similar to the Levelling-up initiative, local authorities and other partners will play a crucial role in deciding how the funding is utilised. Later this month, the Welsh Government will conduct a consultation on the most effective way to use this funding, reports .
The Welsh Government said it 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 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.
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"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 海角视频 Government, decisions on the priorities in this fund will be made here by the Welsh Government."
Secretary of State for Wales Jo Stevens added: "This more than half a billion pound investment from the 海角视频 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, stated: "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 the funding will be announced in the coming months.