Regional Investment in Wales Steering Group meeting, 10 April 2025: minutes

The Chair welcomed attendees noting it was the inaugural meeting of the Regional Investment in Wales Steering Group which succeeds the Strategic Forum for Regional Investment. The Steering Group has been established to help steer the development of a new regional investment programme to commence in April 2026.

The Chair noted this first meeting’s primary purpose was to bring members up to speed on developments taking place on the future of regional investment following the change of UK Government last year. 

The Chair stated the First Minister was currently considering nominees for an independent Chair of the Steering Group to hopefully be in place in time for the next meeting in May. The new Chair will be a Member of the Senedd.

The Chair noted the Cabinet Secretary for Economy, Energy and Planning will be invited to a future meeting of the Steering Group to discuss progress and hear views on proposals from members directly. Local Government Leaders may also be invited to attend future meetings.

The draft minutes from the final meeting of the Strategic Forum for Regional Investment were cleared by members for publication on the Welsh Government website.

The Chair noted the draft Terms of Reference for the Steering Group were circulated prior to the meeting. They reflect new circumstances following the change of UK Government and the opportunity to develop a new regional investment programme based on decision-making returning to the Welsh Government from April 2026.

The Chair added the membership of the Steering Group had been revised from its predecessor, the Strategic Forum, most notably the inclusion of Corporate Joint Committee (CJC) chief executives in place of political leaders given the focus on policy detail alongside work with local government on the role of CJCs. Separate mechanisms are in place for political discussions to take place.

The Chair asked attendees to confirm their permanent representative on the Steering Group to the Secretariat by the week ending 18 April. A provisional members list was circulated by the Secretariat.

The Chair noted a few places are also reserved for expert independent members. He encouraged members to forward details to candidates whose expertise and experience may be suited to supporting the aims of the Steering Group. An information pack and Expression of Interest form were circulated by the Secretariat.

The Chair noted, as a new Group, members are required to declare to the Chair, at the beginning or during any meeting, any situation of actual or perceived conflicts of interest.

Members made the following comments on the draft Terms of Reference:

• Clarification was sought on whether a representative group would be needed to provide ongoing oversight and governance following the planned dissolution of the Steering Group in April 2026.
• If they should more explicitly include considering investment opportunities beyond regional funding / replacement of levelling up funds, in particular private finance opportunities. The importance of alignment of funding streams was noted and welcomed by a number of members.
• It was noted elected members of local government are engaged in political level meetings with the Welsh Government which will complement the work being taken forward by this Steering Group.
• The separation of political and official level meetings was welcomed.

In response to comments made, Tom Smithson (TS) stated the oversight and governance of future arrangements will need to be part of discussions in this group, including any future monitoring function following the launch of a new investment programme in 2026.

TS noted while the Steering Group has a primary task-and-finish role regarding the development of a new regional investment programme, this could still include considering how to leverage a much wider range of different funding opportunities, including releasing private finance.

The Chair asked members to email the Secretariat by the week ending 18 April if they had any further comments or substantive proposals to the draft Terms of Reference.

The Chair invited Tom Smithson (TS), Deputy Director of Economic Strategy and Regulation, Welsh Government, to provide an update on the post-2026 funding context and developments taking place between the Welsh and UK Governments.

TS said Welsh Ministers had agreed for the UK Government to extend the Shared Prosperity Fund (SPF) for a transition year during 2025-26 to provide stability for local authorities and beneficiaries. The SPF will continue without direct Welsh Government involvement and will continue to mean on a time-limited basis the UK Government overseeing the funding directly with local government. Welsh Government’s focus is on post-2026 planning and development.

TS noted the Welsh Government’s position post-2026 was future arrangements must fully respect devolved competences for local and regional economic development and for funding to be multi-annual and needs-based. Welsh Ministers have indicated a willingness to explore the potential for funding focussed on addressing regional inequalities to operate within a flexible UK-wide Framework which has been agreed by all nations in the UK.

TS said the Welsh Government has a clear commitment to developing a post-2026 approach aligned to the Wellbeing of Future Generations Act and via co-production with partners. This is why the group has been asked to start work now, before we have the certainty we hope to get on future arrangements as part of the UK Spending Review due to report in June.

The starting point of this work will be to build on the Framework for Regional Investment previously developed with partners in 2020. This will be reviewed in light of the latest evidence and will also look to learn lessons from the SPF, as well as from previous EU and other programmes.

TS reiterated the Welsh Government’s long-held position on the quantum of funding that should replace EU funds. This should be at least £343 million per annum (uprated for prices), or 22.5% of the UK allocation – whichever is higher. However, he noted the difficult fiscal situation at UK level was a concern which may mean difficult choices for the UK Government, but we hoped funding allocations would be clearer after the UK Spending Review concludes in June.

Developments around long-term plans for growth at UK level were outlined, linked to the industrial strategy. TS said discussions were still ongoing in several areas including regional funds, which were subject to the Spending Review.

TS concluded by outlining the Welsh Government’s four main principles around the return of decision-making on regional funds:

• Welsh Government expects at least the same decision-making responsibilities as we had for EU funding.
• We expect to work together with UK Government to develop and agree any UK-wide framework to set the broad parameters for use of funding.
• We expect Welsh Government to lead the work with partners across Wales to develop an investment approach for Wales.
• Any system must be simpler and less bureaucratic than the EU model and must restore devolution.

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

• A multi-annual approach is important for planning as annualised parameters narrow the scope of delivery.
• Consideration should be given to the timing of a new programme being agreed and the Senedd election in 2026 to provide stability.
• Local intelligence is crucial to understanding how the economy is changing, and how needs are different now to what they were.
• Consider how we can stimulate growth by creating investment propositions and crowd-in funding rather than just ‘spending’.
• Consider co-ordinating capacity and an investment tracker tool.
• A new programme should tackle foundational economic priorities.
• Consider any advantages in emulating UK processes and language under local growth plans, including access to other sources of funding.

TS noted the Welsh Government’s position on multi-annual funding was at least three years. The points being made were consistent with Welsh Government positions and are being raised with the UK Government. However, the UK Government is unable to engage substantively until after the Spending Review clarifies the parameters they will need to work within.

TS agreed we should consider the links to wider sources of investment at a future meeting, and as part of the approach to the specific task of developing a new investment programme in 2026.

The Chair invited Tim Peppin (TP), Corporate Director, WLGA to provide an update on the UK Shared Prosperity Fund (SPF) and its 2025-26 transition year.

TP recapped SPF funding breakdowns and operational structures noting several issues and challenges faced by local government in delivering the scheme.

TP outlined a range of positives local government had identified from the SPF in Wales. These included: low bureaucracy, alignment with existing regional development approaches, extensive range of eligible interventions, good local partnerships, and positive relationships with UK Government officials.

TP added the SPF has a relatively high revenue element which has been important in building capacity to support local and regional development. The SPF has provided a source of funding where no alternatives were available.

TP highlighted SPF achievements in business start-ups and expansions, job creation and skills, town centre regeneration, and public transport enhancements.

TP said the key takeaway was the effectiveness of regional planning allied to local delivery. He concluded with local government’s recommendations for the post-2026 approach on administrative issues and subsidiarity around what’s best done at national, regional and local level.

Following TP’s presentation, the Chair invited Alison Sandford (AS), Welsh Government Head of Policy and Partnership Working in Regional Investment, to introduce a lessons learned exercise on the Shared Prosperity Fund.

AS said the lessons learned from the SPF will support the co-production process involved in developing new arrangements post-2026. The survey is an opportunity for members and wider networks to record their views and experiences.

AS encouraged members to share the survey with their sectors and networks and noted it forms part of a wider approach to considering lessons learned, including the UK Government evaluation of the SPF, evaluations of previous EU programmes and reports published by political committees and think-tanks.

A link to the survey was circulated by the Secretariat.

The Chair invited Tom Smithson (TS) to provide an update on next steps and outline the work programme for the next 12 months. Given limited time remaining in the meeting TS invited members to send any comments or suggestions on the outline work programme to the secretariat for consideration, in particular any areas not covered but needing discussion collectively. 

TS said the next meeting in May will explore lessons learned from previous funding programmes and include a socio-economic analysis presentation to highlight current issues and trends which can inform discussions on priorities.

The updated evidence base and lessons learned will support a review of the Framework for Regional Investment to reflect the latest policy developments and update the priorities and themes.

In June, the Steering Group will need to consider the implications of the outcome of the UK Spending Review, specifically any changes required to the Framework document or our intended / preferred approach.

The June meeting is intended to provide views on an updated Framework to inform a Welsh Government Cabinet meeting to agree a consultation approach. It is hoped a public consultation could then take place over the summer months.

During 2025, the Steering Group and sub-groups would also discuss the detail and mechanics of the Framework as well as any transition arrangements required in 2026 to bridge any gaps to a preferred long-term model.

The Chair thanked members for their attendance and participation. He noted the next meeting will take place towards the end of May and a diary marker would be sent out in due course.

No further business was raised.

Interim Chair 

Andrew Slade, Director General, Economy, Energy and Transport, Welsh Government

Members

North Wales CJC: Alwen Williams, Chief Executive

Mid Wales CJC: Eifion Evans, Chief Executive

South-West Wales CJC: Wendy Walters, Chief Executive

South-East Wales CJC: Kellie Beirne, Chief Executive

Welsh Local Government Association: Tim Peppin, Corporate Director

Third Sector Partnership Council: Matthew Brown, Director of Operations, Wales Council for Voluntary Action

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

Medr, the Commission for Tertiary Education and Research: Hywel Edwards, Head of Research, Innovation and Engagement

Universities Wales (Higher Education): Amanda Wilkinson, Director

Colleges Wales (Further Education): Mark Jones, Chief Executive Officer, Gower College Swansea

Trade Union: Shavanah Taj, General Secretary, Wales TUC

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 

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

Development Bank of Wales: Rob Hunter, Director of Strategy

Local Government (Shared Prosperity Fund regional leads): Dylan Rhys Griffiths, Gwynedd Council; Daniel Burgess, Powys Council; Peter Mortimer, RCT Council; Andrea Virgo, RCT Council

Welsh Government attendees

Tom Smithson, Deputy Director, Economic Strategy and Regulation

Alison Sandford, Regional Investment – Head of Policy and Partnership Working 

Mike Richards, Regional Investment – Communications Manager

David Rosser, Business and Regions – Chief Regional Officer South East Wales

Nathan Cook, Business and Regions – Head of Policy, Economic Resilience

Lisa James, Director – Local Government and Planning

Sam Huckle, Social Partnerships, Employability and Fair Work – Head of Employability and Skills

Peter James, Senior Strategy and Operations Manager – Mid and South West Wales