Council to spend £8m on town centres and supporting businesses

Twm Owen – Local democracy reporter

Nearly £8 million of funding from the UK Government will be spent on town centres and supporting businesses among other projects in one Welsh local authority..

The cash will have to be spent by the end of March 2026 and is the last round of the Shared Prosperity Fund, launched by the previous Conservative government as a replacement for European Union funding which was targeted at the most deprived areas including Torfaen and other parts of Gwent and the Valleys.

Torfaen Borough Council’s Labour cabinet has agreed how it will allocate its £8.3m share of the £103m awarded to south east Wales.

The largest pot, worth £3.3m, will be for prevention projects including employing people, commissioning services and grants, while £1.29m will support business growth and innovation and £1.25m will be spent on town centres.

Balance

A further £1.46m will be used for digital and community wellbeing infrastructure while half a million pounds is allocated for community and business energy with £60,000 for the Torfaen Strategic Forum and £50,000 on strategic sites redevelopment.

Allocations total £7.95m with the balance kept for management costs including fees paid to Rhondda Cynon Taf which is the lead authority for the region.

No further details of how the money will be spent were discussed at the council’s cabinet meeting but its chief financial officer, Andrew Lovegrove, during a discussion on the council’s 2025/26 budget, said the Shared Prosperity Fund can be used to support schools by “putting in things like 3G sports pitches in schools”.

Pontnewydd councillor Sue Morgan said she would like it recorded Torfaen would only reallocate any funding towards projects led by the Cardiff Capital Region if they alligned with the council’s own plans “and represent better value for money”.

Gareth Beer, the council’s head of economy, said there is no obligation on the council to support regional projects if they do not fit with its plans and said it is hoped to know more about regional projects by the end of this week.

Legacy costs

The new Labour UK Government confirmed in its autumn budget the Shared Prosperity Fund would continue as a “transition year” in 2025/26, with existing schemes closing at the end of this March. It Is providing just £900m which is a reduction of around a 40 per cent in its value.

Mr Beer said funds will have to be spent by the end of March 2026, or cash has to be returned to the government, so all projects must be deliverable within 12 months and the council should avoid creating “legacy” costs it would have to pick up after that date.

He also said there is a “risk” towards the end of the projects staff will start to look for other work. Mr Beer said it is likely a replacement “structural fund” will be put in place and talks will take place between the UK Government and devolved administrations.