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Economic Development

Welsh Government not told of Chancellor's plans to forward fund growth and city deals

The Welsh and º£½ÇÊÓÆµ governments are investment partners in the deals in Wales

Chancellor of the Exchequer Rishi Sunak(Image: House of Commons/PA Wire)

The Welsh Government had no prior warning from the º£½ÇÊÓÆµ Government of its decision to bring forward its committed funding contributions for city and growth deals in Wales.

The Swansea Bay Region City Deal, which has been running for a number years with investments already made, as well two separate and emerging growth deals for North and Mid Wales, have approved financial backing from both the Cardiff Bay and Westminster administrations running into hundreds of millions of pounds.

Both governments has worked together on the approval of deals in Wales.

The Treasury announced earlier week it was bringing forward £58.7m in its funding commitment for the all three deal over the next five years. This effectively shortens their backing from what was previously agreed to be over 15 years to 10 years.

The forward funding was confirmed by Rishi Sunak in his Budget along with £30m of backing for the planned £150m Global Centre of Rail Excellence in Neath Port Talbot, a project that is being is being driven by the Welsh Government. He also confirmed £4.8m for a hydrogen hub in Holyhead.

On whether the Welsh Government will now follow suit by bringing its funding commitment forward for the deals, a spokesperson said: "Alongside the other city and growth deal partners, we await further details from the º£½ÇÊÓÆµ Government on what this means for Wales. It is disappointing that the º£½ÇÊÓÆµ Government has not seen fit to engage respectfully with partners on this matter ahead of their announcement.

“We remain committed to providing the funding the deals need to succeed and at the time they need it.”

The £1.3bn Cardiff Capital Region City Deal is expected to clear its first five year gateway review undertaken by both governments later this month.