Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning
I am pleased to publish the Report on the Evaluation of Welsh Government’s Foundational Economy Projects today, demonstrating the success of the Foundational Economy (FoEc) projects delivered by the Welsh Government between 2023-2025.
The projects focused on key FoEc sectors in Wales, such as Food, and Housing and Construction with funding of just over £2m being allocated.
These are crucial sectors in Wales. There are 18,190 businesses in the food sector, generating £21,721bn of turnover. Housing and Construction combined comprise 31,160 businesses, generating turnover of nearly £24bn.
The more we can nurture these sectors, re-localising supply chains and building skills, the more money and talent we keep within Wales and the stronger and more resilient we are. The projects have demonstrated the effectiveness of targeted economic and supply chain interventions combined with climate change goals and show just how much can be achieved, with relatively little funding, through innovative approaches and collaboration.
The projects helped support the objectives set out in the FoEc Mission Statement I launched in April of this year. Opportunities to boost employment and build skills are key aims, and I am pleased that 1,251 jobs were reported as being created/retained through the projects. Capability was boosted across all projects to build resilience and future-proof the sectors, benefitting communities, public sector organisations and our indigenous businesses.
Suppliers in the Housing and Construction sectors increased their retrofit accreditations and electrical and plumbing skills, with 24 SMEs supported to gain PAS2030 certification through NetRet and 120 young people receiving net zero plumbing and electrical skills with Cyfle, with 80% having secured apprenticeship or employment.
Social housing innovation has seen standardised home designs being agreed, the Tai ar Y Cyd (TAYC) Net Zero housing pattern launched, and hundreds of new Welsh suppliers uncovered and upskilled, ensuring Welsh firms can bid for Welsh contracts.
The Food projects have resulted in new, innovative partnerships between growers, local authorities, health boards and wholesalers, enabling increased supply of Welsh, sustainable and seasonal produce, wide-reaching food education and a shift in food procurement patterns.
The Welsh Veg in Schools project has delivered over 200,000 organic Welsh vegetable portions to schools in seven local authorities. The Larder Cymru school menu re-designs have seen Caerphilly Council nearly doubling their spend on Welsh food. Welsh wholesalers, Castell Howell and Harlech, are reporting substantial increases in spend on Welsh food.
These are tangible outcomes, making a real difference to the people, communities and businesses of Wales and I am delighted to see many of them already scaling up. I hope the experiences shared in this report and the lessons learned, will help shape future projects and inspire others to replicate these approaches.