Communities across Wales are set to benefit from a new Local Growth Fund, worth over £500 million, aimed at creating jobs, boosting productivity, and supporting long-term economic development in every corner of the country.
The fund replaces previous EU funding and delivers on the UK Government’s commitment to restore decision-making powers to Wales. A new framework, agreed between the Welsh and UK Governments, will guide how the money is allocated, with a delivery plan led by the Welsh Government.
Local authorities and regional partners will play a key role in shaping how the funding is spent. A public consultation will launch later this month to gather views on how best to use the fund to support:
- Employment and skills development, helping people into work and into higher-paid roles
- Business growth and innovation, especially in key sectors like health and biotech, fintech, low-carbon energy, and AI
- Infrastructure improvements, including low-carbon transport, energy efficiency, and renewable energy generation
The fund is designed to tackle barriers to growth, support inclusive economic development, and ensure every region of Wales has the opportunity to thrive.
This investment marks a significant shift in how regional development is delivered in Wales, empowering local communities to shape their own futures and drive sustainable growth.
Eluned Morgan, Welsh First Minister, said:
“Our new Local Growth Fund for Wales is a significant opportunity to support businesses and social enterprises to grow, export and innovate - particularly in high-growth sectors such as AI, cybersecurity and digital transformation. By tackling barriers like access to finance and encouraging investment in research and development, we can help build a more competitive and resilient Welsh economy.
“Supporting people into work and helping them progress is vital to reducing economic inactivity. By aligning skills development with the needs of our regional economies, we can ensure people across Wales are well placed for the jobs of the future.
“We’re keen to see a strong focus on green infrastructure, energy efficiency and local regeneration. We will encourage investment in renewable energy, low-carbon transport, and heritage. Tourism will be supported in a way that helps our communities thrive.
“I’m very pleased that, following agreement with the UK Government, decisions on the priorities in this fund will be made here by the Welsh Government.”
The Welsh Government is encouraging businesses, councils, and residents to take part in the upcoming consultation to ensure the fund reflects the needs and ambitions of Welsh communities.
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