Eluned Morgan MS, First Minister and Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning
A new fund of more than half a billion pounds will launch in April 2026 to create jobs and grow productivity, bringing benefit to every part of Wales.
The Local Growth Fund for Wales replaces money that used to come from the European Union (EU). Decisions about how the money will be spent will return to the Welsh Government, which honours the UK Government’s manifesto commitment to restore decision-making on money that previously came from the EU.
The Local Growth Fund is for a three-year period and will deliver against the Welsh Government’s Economic Mission and the UK Government’s agenda for growth. The Welsh and UK Governments have agreed a framework which will set priorities and processes for allocating the funds, with an Investment Plan to be developed and led by the Welsh Government.
The new funding is part of a joined-up approach to regional economic development in Wales, which can work alongside other regionally targeted investments to support jobs and growth, including City and Growth Deals and Investment Zones. The aim is to ensure investments complement each other and create efficiencies to support productivity growth and tackle economic inequalities across Wales.
Local government 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. The consultation will focus on how best to:
- 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 Artificial Intelligence;
- support people into work and help people gain new skills and qualifications to progress into higher paid jobs so a larger proportion of our population is employed; and
- 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, digital connectivity, and low-carbon transport.
The consultation will build on previous work with partners on a Framework for Regional Investment in Wales (published in 2020) and with the Organisation for Economic Co-operation and Development (OECD). It will also be supported by ongoing socio-economic evidence, including lessons learned from previous EU funding and UK Government legacy programmes.
The consultation and ongoing work with local government and wider partners through the Regional Investment for Wales Steering Group will help inform the design and delivery of a three-year Investment Plan for Wales to direct this funding.
The Investment Plan for Wales will set out investment priorities, eligible activities, delivery models and geographic approaches specific to Wales, and will be published next year before the new fund begins in April 2026.