North Wales Growth Deal pot of £120m ‘falls some way short’
THE Welsh Government has accused Chancellor Philip Hammond of shortchanging north Wales with his Growth Deal offer.
On Monday Mr Hammond announced in the Autumn Budget that the region would receive £120m towards the North Wales Growth Deal pot that was expected to total £338m.
While the North Wales Economic Ambition Board – the driving force behind the bid for funds – welcomed the money, it has left some feeling the region has been sold short.
The Welsh Government – which is also planning to put funding into the deal pot – said the figure expected from the UK Government was £170m.
They said the offer “falls some way short”.
UK Government said it was a “significant contribution” that is “based on the merits of the overall proposition brought forward, value for money and affordability”.
This could put parts of the planned Growth Deal investments under threat and force the ambition board to cherry pick which of the schemes to move ahead with.
It was hoped the Growth Deal could unlock a total of £700m in investment with private sector and other third party funding working alongside the UK and Welsh Government cash.
A Welsh Government spokesperson said: “The Welsh Government has long championed a Growth Deal for north Wales and has been actively engaged with the North Wales Economic Ambition Board, alongside the UK Government, to ensure a deal which is right for the people, communities and businesses of north Wales.
“The announcement falls some way short of the £170m that the Growth Deal Board has been expecting and working towards.
“We remain fully committed to delivering this potentially transformative Growth Deal, and will continue to work to get the package and direction right for north Wales, agreeing heads of terms on a deal as soon as possible.”
A UK Government spokesperson said: “The £120m UK Government investment in the north Wales region is a steadfast sign of our ambition to boost growth and productivity in this economically important area.
“This significant contribution is based on the merits of the overall proposition brought forward, value for money and affordability, recognising that the UK Government can only spend in areas that are reserved to Westminster.
“It also takes the UK Government’s investment in Welsh city and growth deals to over £700m with discussions for a Mid
Wales Growth Deal also fully under way.
“We hope that this financial promise from the
UK Government will re-energise the
North Wales Growth
Deal team to secure the required investment from all key public and private sector partners, so we can achieve our collective ambition of bringing long term prosperity to the region.”
The Wales policy unit chair for the Federation of Small Business (FSB), Ben Francis, felt that the deal needed to push on.
“We welcome the news that the North Wales Growth Deal has been given a vote of confidence and £120m in this budget,” he said. “The deal is the culmination of years of work between businesses, local authorities and stakeholders who have worked together to ensure that the region is given the support it needs to deliver a thriving, ambitious economic deal. “There is now an urgent need to take this deal forward, to be signed by the partners involved so that it can deliver for the local economy.”
Thoughts echoed by Ian Price, CBI Wales director, who said: “CBI Wales is delighted the North Wales Growth Deal has been given the green light.
“While £120m is lower than some expected, this project promises to kick start the region’s economy but the devil is in the delivery and we now look to the region’s local government to work proactively with the private sector to maximise the benefits of the deal.”
Ian Lucas, MP for Wrexham, pictured left, said: “The UK Government’s support for the North Wales Growth Deal in the Autumn Budget is welcome but it is also limited and long overdue.
“It is the first time we have had a price tag at all for the Growth Deal, though this is the third Budget in which it has appeared.
“And that price tag is less than anticipated – a commitment of at least £150m had been mentioned so the investment of £120m is less than hoped.”
But Clwyd West MP David Jones said: “It is now time for the Welsh Government to step up to the plate and confirm its own financial support for the deal, so that it may at last get under way.”