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Point to note

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email: scu@gov.wales

1. Region

All Wales

2. Title of subsidy scheme

Toyota Lean Clusters Wales

3. UK legal basis

  • Section 60(1) of the Government of Wales Act 2006
  • Section 1(2), 1(3)d and 1(7)f of the Welsh Development Agency Act 1975

4. Specific policy objective of the scheme

The Well-being of Future Generations Act is built on several key principles to improve the social, economic, environmental, and cultural well-being of Wales.

In general, higher national productivity leads to higher material living standards and higher earnings. Wales faces a productivity issue, with output per hour worked the lowest of all UK nations and regions. Our Calls to Action have been created to tackle this issue.

The Welsh Government has a policy objective to deliver a more prosperous economy that operates within safe environmental limits and advances the well-being of current and future generations through our Economic Mission. This defines productivity as being fundamental for a sustainable and growing economy which produces more with less while innovating and creating returns and rewards for workers and business owners. Productivity and growing businesses provide the foundation for a growing tax base, from which government resources are generated to fund these investments.

The Welsh Government's "Manufacturing Future for Wales" framework emphasizes the importance of supporting productivity through various drivers such as skills, innovation, and competitiveness. The framework highlights the need to seek out opportunities within Wales and comparable regions to share best practices and benchmark performance.

The Welsh Government wants to help businesses grow by driving regional productivity and boosting competitiveness.

5. Purpose of the scheme

The Toyota Lean Clusters programme has been established to support Welsh companies improve their operational performance and increase levels of productivity through prioritising the development of people via project delivery through the Toyota Way (Systems Thinking) approach.

Wales faces a productivity issue, with output per hour worked in Wales the lowest of all UK nations and regions. This lower productivity is the main driver of the Gross Value Added (GVA) gap between Wales and the UK. The reasons for this lagging productivity performance are complicated, with no simple or single solution. Investments in human capital, infrastructure and physical capital; innovation and science; enterprise and competition all have a part to play. These Calls to Action are aimed at tackling this within our Prosperity For All: Economic Action Plan.

6. Public authority(ies) authorised to implement the scheme

Welsh Government

7. Category(ies) of eligible enterprise

The scheme has no restrictions based on size or structure. However, sole proprietors would be prohibited from applying due to the nature of programme outcomes.

8. Summary of the terms and conditions of the scheme

All participating enterprises need to be located in Wales. The eligibility will be determined by Toyota Manufacturing UK. For example, competitors to Toyota will be ineligible as will consultants.

9. Basis for the calculation of subsidies under the scheme, including a summary of any conditions relation to subsidy ratios or amounts

All participating enterprises need to be located in Wales. The eligibility will be determined by Toyota Manufacturing UK. For example, competitors to Toyota will be ineligible as will consultants.

10. Sector(s) to be supported

  • Agriculture, forestry and fishing
  • Mining and quarrying
  • Manufacturing
  • Electricity, gas, steam and air conditioning supply
  • Transportation and storage
  • Wholesale and retail trade; repair of motor vehicles and motorcycles
  • Construction
  • Water supply; sewerage, waste management and remediation activities
  • Accommodation and food service activities
  • Information and communication
  • Financial and insurance activities
  • Professional, scientific and technical activities
  • Administrative and support service activities
  • Public administration and defence; compulsory social security
  • Education
  • Human health and social work activities
  • Arts, entertainment and recreation

11. Duration of the scheme

1 April 2025 to 31 March 2030.

12. Budget for aid under the scheme

£2,000,000

13. Form of support

Direct grants

14. Basis for calculating subsidies

The current model has been benchmarked and developed from a similar framework designed by Enterprise Ireland who have been hugely helpful to the Welsh Government in sharing their ideas on what worked and what could be improved.

Given the market failure and productivity inequality across the UK, the subsidy grant and its intervention rate (50% and 75%) is significant to the successful recruitment for the programme and to maximise the number of organisations who will engage with Toyota and their Lean Management Centre.

15. Maximum subsidy allowable under the scheme

£15,000

16. Contact information

Subsidy Control Unit

Welsh Government
Cathays Park
Cardiff CF10 3NQ
United Kingdom

Telephone: + 44 (0)3000 604 400

Rydym yn croesawu galwadau a gohebiaeth yn Gymraeg / We welcome calls and correspondence in Welsh.

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