£134m funding boost unlocked after major review of regional investment programme

Mark Mansfield

A major economic development programme has secured access to a further £134 million of UK Government funding after passing an independent review of its performance.

The funding will be released to Cardiff Capital Region over the next five years following the successful completion of its second Gateway Review, an assessment of whether the region is delivering on the economic growth objectives set out under its £1.2 billion City Deal.

Cardiff Capital Region (CCR), which brings together 10 local authorities across South East Wales, was established in 2017 with backing from the UK and Welsh governments to drive investment, job creation and economic development.

The latest review found the region had made strong progress since its first Gateway Review in 2021, highlighting growth in sectors including compound semiconductors, cyber security, fintech, creative industries and medical technology.

According to CCR, the programme has created or safeguarded more than 5,000 jobs, helped more than 2,700 people gain new skills or retrain, and delivered over 83,000 square metres of new commercial space.

CCR chair Mary Ann Brocklesby said the review recognised the impact of investments made across the region.

“We have come a long way since our first Gateway Review and are proud this independent assessment recognises the impact of Cardiff Capital Region’s investments,” she said.

“We have created and safeguarded more than 5,000 jobs, supported over 2,700 people to upskill or reskill, and delivered more than 83,000 square metres of new space, boosting private investment and business confidence across South East Wales.

“We are proud that our investments are helping build a more resilient regional economy and deliver lasting benefits for our communities.”

Chancellor Rachel Reeves said the additional funding reflected the progress already made through the City Deal programme.

“This new funding for Cardiff Capital Region is a direct result of the hard work and collaboration that has already seen nearly 4,000 jobs created and thousands of people helped to retrain,” she said.

“This money means more real jobs, skills training and business support for people right across the region.”

Transformational

Welsh Government Cabinet Minister for Enterprise, Connectivity and Energy Adam Price congratulated CCR on the successful review outcome.

“The next phase of the City Deal will provide opportunities to deliver more transformational projects, particularly in key priority sectors such as compound semiconductors, with wide economic benefits in the region,” he said.

Wales Secretary Jo Stevens said the funding would help build on existing successes and support future economic growth.

“The release of £134 million to Cardiff Capital Region means they can continue to grow sectors where there is huge potential and help secure the economic future of South East Wales,” she said.

The Gateway Review process is a formal requirement for regions managing major UK Government investment programmes and determines whether further funding can be released.