Council leaders sign off on the £1.2bn City Deal
A£1.2bn Cardiff Capital Region (CCR) City Deal, that aims to create 25,000 new jobs over the next 20 years, was formally ratified yesterday at a signing ceremony at Cardiff Airport yesterday.
The City Deal is expected to unlock significant economic growth across the 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 10 council leaders gathered at the airport for the signing.
Andrew Morgan, chair of the CCR regional cabinet and leader of Rhondda Cynon Taf County Borough Council, said: “This is 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 over £500m is provided by the Welsh Government and £125m from the UK Government. It is also seeking just over £100m from the EU.
The UK Government has provided £375m as part of the wider investment fund, while the 10 local authorities have agreed a commitment to borrow a combined total of £120m.
Yesterday’s signing means the regional cabinet of the 10 leaders has come out of shadow, and the City Deal will now enter a transitional 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. This includes the creation of a bespoke impact assessment model for those proposals.
The make-up of the projects will not emerge until later this year. However, they will focus on support for new housebuilding across the region by working with the private sector, as well as infrastructure – such as “Metro-plus” projects – and skills.
There could also be a regional investment fund, which would seek to be bolstered by private sector finance, to provide growth capital to firms.
Funding could also be provided to help realise a new indoor arena in Cardiff, seating up to 15,000, as well as the creation of the world’s first compound semiconductor cluster with a focus on Newport.
The transition phase will also see the creation and development of three advisory bodies to the regional cabinet – the CCR Economic Growth Partnership, a region-wide business representation organisation and an Employment and Skills Board, and one delivery body, the Regional Transport Authority.
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.
“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.”
Cardiff Airport chairman Roger Lewis, who chaired the initial Cardiff City Region advisory board, said: “We salute you all [10 local authorities] for your vision and leadership to commit to build a confident, collaborative, connected region, primed for economic growth.
“This Cardiff Capital Region City Deal is a ‘big deal’, based upon a unity of purpose, a coming together of 10 authorities alongside the Welsh and UK governments.”
Professor Kevin Morgan, of Cardiff University’s School of Geography and Planning, said: “Cardiff University very much welcomes the City Deal. We’re keen for partners to make use of our expertise and resources, particularly our £300m Innovation Campus, which can help boost prosperity in the City Region.”