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Committee launches inquiry into effectiveness of Growth and City Deals for Wales

02 April 2019

The Welsh Affairs Committee launches an inquiry into the effects and value of funding provided to Wales from the UK and Welsh Governments through Growth and City Deals, and how lessons learnt can be built into proposals for similar deals to boost economic growth throughout Wales.

Growth Deals

In the 2018 Autumn Budget the Chancellor of the Exchequer announced £120 million capital for the North Wales Growth deal, and the Welsh Government agreed to match this funding. However it has not yet been implemented. The level of funding provided by the UK Government had been criticised for being £50 million lower than the original proposal, and the Welsh Government has called for the Government to step up its level of support for the area. The Committee’s inquiry will examine the effectiveness of the growth deal for creating new jobs, and incentivising additional investment in the area.

Since the announcement of the North Wales Growth Deal, there have been increasing calls for a Mid Wales Growth Deal of £200 million to support economic expansion in the area. it is expected that the deal will be proposed by the Autumn budget. 

City Deals

Additionally, a number of areas in Wales have been granted City Deals to boost economic growth. The Cardiff City Region Deal was announced by the UK Government on 15 March 2016 and included £1.2billion in funding in partnership with the Welsh Government and 10 local authorities. The Swansea Bay City Region Deal was announced by the UK and Welsh Governments in June 2017 with estimated funding of nearly £1.3billion.

The Committee’s inquiry will examine the impact of these deals, and consider what can be learnt from how their operation for future deals for Wales.

Chair's comments

Launching the inquiry, Chair of the Committee, David T.C. Davies MP said:

“With the Cardiff and Swansea City Deals in the South, and the potential for Growth Deals in Mid and North Wales, we could soon see deals to encourage economic growth covering all of Wales. This would be a positive development and we hope to see a strong commitment from the UK and Welsh Governments to the Mid and North Wales Growth Deals.

My Committee’s inquiry will scrutinise how the City Deals are currently operating, examining their economic effect, and consider what lessons can be learnt to apply to the growth deal proposals in Mid and North Wales.”

Terms of reference

The Committee is inviting written evidence submissions on the following points:

  • How is the Cardiff Capital Region City Deal currently operating;
  • How successfully has the Cardiff Capital Region City Deal been implemented and what improvements have been seen in the Cardiff Capital Region economy as a result;
  • How has the Swansea Bay City Deal improved the local economy;
  • What will change in the governance of the Swansea Bay City Deal following the independent review;
  • What lessons can be learnt from the City Deals for the Mid and North Wales growth deal proposals;
  • What would be the impact of the proposed North Wales Growth Deal on the North Wales economy, which sectors would benefit, and what would be the quality of jobs created;
  • Is the current UK Government and Welsh Government funding sufficient to support the North Wales Growth Deal;
  • What should a Mid Wales Growth Deal include and which sectors should it focus on;
  • What support and structures should be put in place to enable a Mid Wales Growth Deal proposal to be successful.

Submit written evidence

Contribute views and ideas to the inquiry by submitting written evidence here by 5pm on Tuesday 14th May

Anyone can submit written evidence as long as the submission is clear, concise, addresses the terms of reference and is not already published elsewhere.

Further information

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