Questions raised over council’s City Deal investment

Elgan Hearn, Local Democracy Reporter 

A Welsh council receives £5 for every £1 it puts into the Cardiff Capital Region City Deal (CCR), councillors have been told.

How effective the CCR has been in boosting the Blaenau Gwent economy was brought up for discussion at a council meeting on Thursday, 22 January.

Former Deputy Council Leader, Cllr Helen Cunningham (Llanhilleth), who left the Cabinet and Labour group last month and now sits as a non-aligned councillor, asked: “What assurance can be provided to council that Blaenau Gwent receives an equitable deal for its membership of the Cardiff Capital Region?”

Council leader Cllr Steve Thomas (Labour – Tredegar) explained that when the CCR was set up it was expected that the “greatest benefit” would come from economic development having an impact for the whole of South East Wales.

Cllr Thomas said: “This is as true today as it was when the deal was first agreed.

“It’s difficult to judge the value of regional partnership solely by postcode, as people travel to work, visitors cross borders and supply chains don’t stop at council boundaries.

“Blaenau Gwent can demonstrate a strong and measurable return on its investment.

“We have contributed £2.3 million to the city deal and in return £10.8 million has been invested directly in the borough.

“That has gone on to leverage over £20 million in private sector funding and a further £5.9 million in public sector investment that supports at least 480 high skilled jobs across the supply chain.

“In simple terms it’s a return of nearly £5 for every £1 we’ve put in and that’s before we count the wider economic skills and transport benefits that come from being part of the region.”

He listed a number of companies that had been brought in to Blaenau Gwent due to funding help from CCR, such as Pulse Plastics and Apex Additive Technologies.

Upgrading premises at the Crown Estate Industrial Park in Tredegar had also been helped by CCR.

Cllr Thomas pointed out that Aspire and Venture Graduate educational programmes and other transport enhancements came from CCR.

Cllr Thomas said: “We are also a one tenth shareholder in regional companies created through CCR, including CSC foundry.”

This semi-conductor foundry is based in Newport.

Cllr Thomas added: “These are long term regional assets, and our residents benefit directly from them – so by that metric we can say it’s a fair return for our investment.”

Cllr Cunningham asked for a further breakdown of the £10.8 million that had been invested in Blaenau Gwent.

Cllr Cunningham said: “Connecting people to jobs is really key for us considering we don’t have enough jobs in the borough and one third of our residents don’t have access to a car.”

Opposition Independent group leader Cllr Wayne Hodgins (Brynmawr) said it would be “useful” for all councillors to be briefed and updated on the work of CCR.

Cllr Thomas said: “We will look to do full session with members around CCR and in particular around transport.”

This is expected to happen after the 2026/2027 budget is finalised.

Set up in 2016, the Cardiff Capital Region City Deal is a £1.2 billion partnership between the UK Government, the Welsh Government, and ten local authorities in South East Wales to drive economic growth and improve infrastructure across the region.

The 20-year deal aims to create up to 25,000 new jobs.