Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning
Today, we open a six-week public consultation on proposals for the new Local Growth Fund in Wales to ensure that we are ready to implement this fund from April 2026.
The Local Growth Fund will invest £547m of UK Government funding in Wales over three years. For the first time since we left the EU, decisions on these important regional economic development funds will return to the Welsh Government.
The proposals in the consultation build on evidence gathered through previous co-produced work with partners on a Framework for Regional Investment in Wales, our projects with the OECD on regional economic development, and input from local government and the Regional Investment Steering Group chaired by Carolyn Thomas MS.
The proposals also draw on an up-to-date analysis of socio-economic evidence and lessons learned from previous funding programmes, including those from Senedd Committees.
The consultation document, which is available here, reflects our key objectives for this funding: to raise productivity and tackle economic inequalities. It aligns with the Welsh Government’s Economic Mission and with the UK Government's growth mission and Industrial Strategy.
The consultation document seeks views on the objectives we should prioritise for investment from those identified in different priority areas:
- More productive and competitive businesses – including a focus on tackling barriers to growth for firms and social enterprises, such as exporting or expansion and access to finance, increasing RD&I investment and knowledge exchange, and taking advantage of opportunities in high growth sectors such as AI, cybersecurity, and digital transformation.
- Supporting people into work and increasing skills – including a focus on increasing economic activity, support for in-work progression of under-represented groups, improving skill levels, and support for demand-led skills in high growth and regionally important sectors.
- Green infrastructure and energy efficiency – including a focus on increasing renewable and low-carbon energy generation, low-carbon transport and digital connectivity where there is added value, and capital investment to tackle fuel poverty and improve energy efficiency in housing.
- Local infrastructure driving regional economies – including a focus on local infrastructure, including heritage, culture and tourism assets.
The consultation also seeks views on the delivery approaches for the Local Growth Fund, including national, regional, and local approaches, and the transition from the Shared Prosperity Fund.
We will be hosting four regional events to discuss proposals with Welsh partners. Details will be available on the Welsh Government website shortly.
We will continue to engage directly with local government to support a smooth transition, and with the Regional Investment Steering Group to inform the development of proposals.
We intend to submit an Investment Plan to the UK Government as soon as possible next year so that funding can be transferred to the Welsh Government.
I will keep the Senedd updated on the development of the Local Growth Fund as work progresses over the coming months.