Grant funding split will be a disaster for projects predicts Welsh councillor

Elgan Hearn, Local democracy reporter

A senior councillor believes that the way grant funding has been split between revenue and capital will prove to be a “disaster” for projects in a Welsh county.

At a meeting of Blaenau Gwent County Borough Council on Wednesday, March 25, the council received the blueprint for economic growth by using external grant funding.

Blaenau Gwent expects to receive £9.358 million to invest in economic development, which is split with 70 per cent going into capital funding, which equates to £6.556 million, and 30 per cent for revenue funding, which is £2.802 million.

Capital funding is typically used for building or infrastructure projects, while revenue funding is used to pay for the day-to-day operational costs.

This funding comes from the Local Growth Fund (LGF) allocation for South East Wales.

The LGF is seen as the UK Government’s replacement for grant funding that used to come from the European Union.

Former deputy council leader, Cllr Helen Cunningham, flagged up the issue.

Cllr Cunningham (non-aligned – Llanhilleth) said: “The report is very diplomatic when it talks about the revenue/capital split that’s been proposed for the funding.

“In all honesty, I believe it’s going to be a disaster for the projects in our borough.

“I have been contacted by lots of organisations who are really concerned in terms of things such as business support, training and employability. The Industrial Communities Alliance has said it takes a sledgehammer to those schemes.”

She pointed out that the First Minister, Eluned Morgan, visited Ebbw Vale earlier this week to launch the local growth funds.

Cllr Cunningham asked: “Did anyone present at the meeting have a conversation with the Welsh Government about reconsidering this 30/70 split, knowing the harm it’s going to cause and the damage it will do?

“It’s a split inherited from the UK Government, and I really hope that the Welsh Government would take a more enlightened approach.”

Cabinet member for economy and place, Cllr John C Morgan (Labour – Georgetown), said that he had been in meetings with the Cabinet Secretary Rebecca Evans “yesterday.”

Cllr Morgan said: “They confirmed that the Welsh Government and other bodies have contacted the UK Government on a number of occasions to outline exactly what Cllr Cunningham is saying.

“But at this moment in time, they are not moving.”

Joint director of economy for both Blaenau Gwent and Torfaen, Christina Harrhy, said: “There has been a lot of lobbying going on as this fund has been developed.

“It’s not ideal at all, and if we were given the choice we would slice it up in more of a reasonable way.

“But it is what it is.

“As officers, we’re fleet of foot and dealing with challenging situations like this, and we’ll make it work.”

She added that it’s part of a “package” of funding.

Later, councillors agreed to back the economic growth blueprint.