Metro a step closer as City Deal is signed off
A “HISTORIC” £1.2bn deal that could transform South Wales’ public transport, boost the region’s economy and create 25,000 jobs has been formally signed off.
At a special ceremony yesterday to coincide with St David’s Day, the Cardiff Capital Region City Deal was ratified by 10 councils across the region.
The move means the long-awaited South Wales Metro transport system, which could see trams returning to the streets of Cardiff, takes a step closer to reality.
The Cardiff City Deal is expected to unlock significant economic growth across the Cardiff Capital Region (CCR), which includes the 10 local authorities of Cardiff, the Vale of Glamorgan, Rhondda Cynon Taf, Merthyr Tydfil, Caerphilly, Monmouthshire, Bridgend, Blaenau Gwent, Torfaen and Newport.
The aims of the CCR City Deal are to create jobs and boost economic prosperity by improving productivity, tackle worklessness, build on foundations of innovation, invest in physical and digital infrastructure, provide support for business, and ensure that any economic benefits generated as a result are felt across the region.
The leaders of the 10 local authorities within the CCR signed the City Deal document in a ceremony at Cardiff Airport.
Councillor Andrew Morgan, chairman of the CCR regional cabinet, and leader of Rhondda Cynon Taf council, said: “Today is an historic day for the Cardiff Capital Region.
“Leaders and officers have worked extremely hard over the past 16 months to get the City Deal to this position, particularly in terms of reaching agreement on the governance and accountability of the Regional Cabinet.
“Working with stakeholders, and in particular business, we will bring about an economic and social stepchange in the Cardiff Capital Region, through improved transport, supporting innovation, an improved digital network, developing skills, supporting enterprise and business growth, and through housing development and regeneration.”
The City Deal includes funding of £734m for the South Wales Metro, of which more than £500m is provided by the Welsh Government and £125m from the UK Government.
The UK Government has provided £375m, and the 10 local authorities have agreed a commitment to borrow a combined total of £120m as part of the Wider Investment Fund.
Yesterday’s signing means that the City Deal will enter into a transition phase.
The Cardiff Capital Region Transition Plan will detail key activity to be undertaken, including establishing a regional office to drive the delivery of the regional cabinet’s work programme in anticipation of receiving proposals.
First Minister Carwyn Jones said: “I’m delighted that the landmark £1.2bn Cardiff Capital Region City Deal has been formally ratified.
“The Welsh Government has worked closely with the 10 local authorities and the UK Government to negotiate the city deal, which is the first in Wales.
“The Welsh Government’s contribution of over £500m in funding for the Metro was instrumental in securing the deal.
“The Metro will be key to delivering our plans to improve transport connectivity and economic prosperity in the region.
“I am pleased that the city region has now reached the stage where it can begin the work of delivering projects that will make a real difference to the economy of the region, and ultimately, to people’s lives.”