Regional Investment in Wales Steering Group meeting, 20 November 2025: minutes

The Chair welcomed attendees and noted the negotiations over the summer between the Welsh and UK Governments on the detail of how local growth funding (LGF) will return to the Welsh Government had concluded positively. This meant work could now commence on the development of a three-year LGF investment plan for Wales to commence in April 2026.

The Chair stated the Welsh Government had opened a six-week consultation on proposals for the LGF on 7 November. This meeting provides an opportunity to provide views on the consultation proposals before the deadline for responses on 19 December.

The draft minutes of the previous meeting were cleared for publication on the Welsh Government website. 

The Chair invited Tom Smithson (TS), Welsh Government Deputy Director for Economic Strategy and Regulation, to provide an update on the LGF and developments since the last meeting.

TS noted the joint statement issued by the Welsh and UK Governments confirming local growth funding worth £547 million would return to the Welsh Government to invest between April 2026 and March 2029.

LGF aims in Wales will be to support productivity growth and tackle the issues leading to economic inequalities across Wales.

TS noted LGF arrangements would involve a Memorandum of Understanding between both governments and the Welsh Government acting as Accounting Officer with responsibility for managing the funding in Wales. An Advisory Group will be established to advise both governments following the launch of the Fund.

The next steps involve the Welsh Government developing with partners a three-year investment plan for Wales to include investment priorities, eligible activities, delivery models and geographic approaches.

TS noted the consultation document reflects alignment with the UK Growth Mission and Industrial Strategy, emerging evidence from socio-economic analysis, the Welsh Government’s Framework for Regional Investment, OECD recommendations and lessons learned from previous funding programmes.

The four proposed investment priorities in the consultation document were noted as:

• more productive and competitive businesses
• supporting people into work and increasing skills
• green infrastructure and energy efficiency
• local infrastructure driving regional economies

TS said the consultation proposals involved planning, prioritisation and coordination at regional level via Corporate Joint Committees (CJCs) with delivery at the local level.

TS also noted the consultation seeks views on some national projects, however they would be regionally significant and locally delivered. The LGF’s first year would involve transition arrangements with local government with a review at six months.

The Welsh Government has sought discussions with the UK Government to try and secure a more balanced approach to the proposed 70:30 capital/revenue split. However, it is clear this new Fund is not a direct replacement for the Shared Prosperity Fund and will therefore be more capital intensive and growth oriented.

Consultation responses will be analysed in December and a report published on the Welsh Government website as soon as practical next year.

In response to TS’s presentation, members made the following comments:

• Request for focus and pragmaticism about what is achievable and deliverable in 2 to 3 years.
• Need certainty on regional allocations, timing and whether funding will be annual.
• Explore potential for capital projects having extensions to complete beyond the current three-year LGF commitment
• Without initial revenue support, only ‘ready-to-go’ capital projects will be viable. New project ideas would not be deliverable.
• Explore potential for frontloading most of the three-year revenue element into the early stages of the LGF.
• Need to define what costs can be capitalised to ensure a better funding balance.

The Chair invited Nadine Young (NY) to introduce a session on the Local Growth Fund consultation.

NY introduced each of the consultation’s four investment priorities, summarising the proposed strategic objectives within each priority, and the proposed delivery model.  

In response, members made the following comments:

Business priority

• Important for business to have a single point of access to the fund. Ensure alignment with other programmes.
• Adoption of technology and innovation by business community is a key challenge but presents an opportunity for growth across Wales.
• Focus on supporting start-ups and spin-outs if growth is the main objective.
• Consider inclusive growth and impact on left behind communities if high-growth opportunities are exclusively prioritised.

Skills priority

• Prioritisation in this area is vital as skills investment is revenue. May only be able to focus on one objective within the investment priority as a result.
• Consensus on priority to address demand-led skills and acknowledgement of significant need to tackle growing economic inactivity. It was noted the latter is a long-term challenge which may not fit into a 2 to 3 year funding cycle.

Green energy priority

• Three-year timescale is a significant barrier for energy projects of any scale, for example wind turbines can take 10 years from start to finish.
• Consider RD&I under the green energy priority given Wales' strengths in this area, as well as within the Business Competitiveness priority.

Local infrastructure priority

• Consensus on digital connectivity focus and expanding 5G coverage.

Delivery Model

• Concern about the readiness and capacity of CJCs to assume lead regional role with the LGF.
• Important not to specify solutions from the centre. Regions need to have flexibility to focus on their own opportunities and needs. Success/growth looks different in each region.
• Consider resourcing application support (i.e. WEFO approach) otherwise there is a risk of the best business plan writers monopolising funding, creating implications for achieving impact goals.

Tom Smithson (TS) noted the 19 December deadline for consultation responses and said work was taking place in parallel with the UK Government on some of the issues raised by members during the meeting.

The immediate priority is to analyse all the consultation feedback to inform the development of a three-year investment plan. The plan will need to be agreed by Welsh Ministers in early February before submission to the UK Government later that month. The RIWSG will meet again to consider the consultation feedback and prior to submission of proposals to Welsh Ministers. 

The Welsh Government aims to finalise a transition year plan with local government in March so all key programme documents are published before 1 April.

The intention is for funding to be available to the SPF regional lead local authorities before the election, and for a review on progress in October.

The Chair thanked members for their attendance and participation. She noted the next meeting will take place in January.

No further business was raised.

Chair 

Carolyn Thomas MS

Members

North Wales CJC: Nia Medi Williams, Operations and Resources Manager

South-West Wales CJC: Helen Morgan, Economic Development Manager; Kristy Tillman, Head of Policy and Business Administration

Mid Wales CJC: Eifion Evans, Chief Executive

South-East Wales CJC: Kellie Beirne, Chief Executive

Welsh Local Government Association: Lowri Gwilym, Team Manager, Europe and Regeneration

Third Sector Partnership Council: Matthew Brown, Deputy Chief Executive, Wales Council for Voluntary Action

Third Sector (Social Enterprise): Glenn Bowen, Director of Enterprise, Cwmpas

Federation of Self Employed and Small Businesses Wales (Business): Llyr ap Gareth, Head of Policy

Medr, the Commission for Tertiary Education and Research: Rhian Edwards, Executive Director for Policy

Universities Wales (Higher Education): Amanda Wilkinson, Director

Colleges Wales (Further Education): Kelly Fountain, Chief Executive, Gower College Swansea

Natural Resources Wales (Environmental): Rhianne Jones, Lead Specialist Advisor EU Exit and Land Management

Chambers of Commerce: Gus Williams, Chief Executive, South and Mid Wales 

CBI (Business): Leighton Jenkins, Assistant Director, Policy

Wales Rural Network (Community-led local development): Eirlys Lloyd, Chair, Wales Rural Network

Development Bank of Wales: Rob Hunter, Director of Strategy

Trade Union: Ceri Williams, Policy Lead, Wales TUC

Local Government (Shared Prosperity Fund regional leads): Dylan Rhys Griffiths, Gwynedd Council

Grahame Guilford and Company: Grahame Guilford

Cardiff University: Kevin Morgan

Welsh Government attendees

Tom Smithson, Deputy Director, Economic Strategy and Regulation

Nadine Young, Head of Regional Investment, Economic Strategy and Regulation

Alison Sandford, Head of Partnership Working, Economic Strategy and Regulation

Mike Richards, Communications and Stakeholder Manager, Economic Strategy and Regulation

Eleri Carrington, Head of Regional Policy, Economic Strategy and Regulation

Benedict Watson, Senior Policy Manager, Economic Strategy and Regulation

Cheryl Jones, Regional Policy Manager, Economic Strategy and Regulation

Matt Wellington, Deputy Director, Local Government Policy

Lea Beckerleg, Head of Local Government Regional Collaboration, Local Government Policy

Ann Watkin, Head of Strategy, Operations Alignment and Planning, Business and Regions