UK Government pulls plug on aid programme for Wales
![](https://nation.cymru/wp-content/uploads/2024/04/01HT2EBE4ZXMQWKN2H5SP3AQP7-scaled-e1712943426905.jpg)
Martin Shipton
Regional aid projects worth £80m affecting four locations in Wales have been suspended by the UK Labour government pending a review of how the scheme will operate.
In October 2023 the previous Tory government announced that Barry, Cwmbran, Merthyr Tydfil and Wrexham would each receive £20m following “long-term plan” submissions they had made to the levelling-up budget.
But this week local groups managing the schemes were told that Alex Norris, the Minister for Local Growth, had decided to suspend the long-term plan submissions for all 55 towns and cities awarded funding across the UK.
Local groups expect officials from the Ministry of Housing, Communities, and Local Government – headed by Deputy Prime Minister Angels Rayner – to provide further details and revised timelines in due course.
We understand there is no indication yet that the funding is likely to be withdrawn, and that more updates are likely around the time of the Autumn Spending Review, probably in October or November.
Uncertainty
However, the decision to suspend the programme has created uncertainty, with those involved concerned about the projects’ future.
It is understood that the Chair of the Partnership Board managing the project in Barry has met the new Vale of Glamorgan Labour MP Kanishka Narayan, council leader Lis Burnett and Senedd Member Jane Hutt. They are now essentially lobbying their own party for the grant money or – as a local political source put it – more probably “some” money for Barry.
The source said: “I’m very disappointed in the Labour Party over this. Uncertainty does not help anyone. When a government withdraws a promise for a review, you just know they will come back with a watered-down version of it.”
When the four Welsh locations were awarded the cash in October 2023,the £80m was said by then Prime Minister Rishi Sunak to be part of £1.1bn levelling up investment being provided to 55 towns across the UK. Merthyr Tydfil, Cwmbran, Wrexham and Barry were getting the money as part of a long-term investment plan for towns that have been overlooked and taken for granted.
The money would be provided directly by the UK Government to the relevant local authority. Westminster said it would work with local partners including the Welsh Government to make sure the funding was used to best effect.
Endowment-style fund
Under what was described as a new approach, local people would be put in charge, and given the tools to change their town’s long-term future. They would receive a 10-year endowment-style fund to be spent on local people’s priorities, like regenerating local high streets and town centres or securing public safety. In addition a “town board” would be set up to bring together community leaders, employers and local authorities to deliver the long-term plan for their town and put it to local people for consultation.
At the time, Mr Sunak said: “Towns are the place most of us call home and where most of us go to work. But politicians have always taken towns for granted and focussed on cities.
“The result is the half-empty high streets, run-down shopping centres and anti-social behaviour that undermine many towns’ prosperity and hold back people’s opportunity – and without a new approach, these problems will only get worse.
“That changes today. Our long-term plan for towns puts funding in the hands of local people themselves to invest in line with their priorities, over the long-term. That is how we level up.”
Significant investment
The then Welsh Secretary David TC Davies said: “Merthyr Tydfil, Cwmbran, Wrexham and Barry are all fantastic places and will hugely benefit from this significant investment in their future. We are proud to be supporting people to take control of their local areas. Levelling up is at the centre of the UK Government’s ambitions and communities across Wales will be transformed over the coming years with the investment we are making in them.”
The long-term plan for towns would require town boards to develop their own long-term plan for their town, with funding over 10 years and aligned to the issues that research shows people want the most, such as:
* Improving transport and connections to make travel easier for residents and increase visitor numbers in centres to boost opportunities for small businesses and create jobs.
* Tackling crime and anti social behaviour to keep residents safe and encourage visitors through better security measures and hotspot policing
* Enhancing town centres to make high streets more attractive and accessible, including repurposing empty shops for new housing, creating more green spaces, cleaning up streets or running market days
Towns were allocated funding according to the Levelling Up Needs Index, which took into account metrics covering skills, pay, productivity and health, as well as the Index of Multiple Deprivation, aimed at ensuring funding went directly to the towns which would benefit most.
The decision to suspend the programme has thrown the future of the plans into doubt.
Harm
Plaid Cymru Westminster leader Liz Saville Roberts said: “The Tories’ so called ‘levelling up’ funds were never accompanied by a real, effective strategy to properly invest in the futures of our communities across Wales – all while undermining democracy by shutting the Senedd out of funding decisions in Wales.
“However, potential changes to already allocated long-term funding, without clarity in terms of financial impact, or plans for replacement funding, will harm local areas. Such uncertainty over future funding only damages long-term budgetary planning on the local and regional level.
“Plaid Cymru calls on the Labour UK and Welsh Governments to set out plans to ensure communities in towns across Wales will not have to face unexpected shortfalls as a result of UK Government political whims and changing interests.
“This is exactly why it’s imperative that decisions affecting Wales are made in Wales, according to the needs of the people of Wales. Now is the time for Labour to show their promised ‘change’ by putting the Welsh Government back in charge and devolving post-Brexit regional funds.”
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Well , ssurprise surprise! Do the ‘Londonista’s actually know where and what ‘Wales’ is??
Did Starmer discuss this with Eluned Morgan during his recent visit here or did he run back to England to announce it from there?
So no EU funding and now no Westminster funding to replace it. It took 8 years of bluff and lies but finally we’ll get what Brexit always promised – absolutely nothing. No matter what colour is in power in London – we’ll get shat on. Remember that folks come 2026.
Sick of UK robbing us
Isn’t Wales part of UK .Thought Wales was devolved. Always voted Labour. Never mind
When will we ever learn? Makes me so angry. And rather than being the one stigmatised holding the begging bowl should be taking advantage of our own vast natural resources not seeing Wales effectively asset stripped. Billions of pounds haemorrhage from Wales to the Crown Estate & English Treasury coffers and we receive nothing in return but ridicule from the right-wing English media, who arrogantly say that we are land of benefit scroungers and how it’s English money that keeps you afloat. A total lie. It’s Wales should be making our own trade deals with Europe and around the world,… Read more »
Very poorly designed policy to try to win votes. It was never going to be that good compared to the loss from brexit and poorly managed from the top at No10 ( gove was involved, wothca expect). It is on hold across the UK not just Wales.
So its on hold whilst they review it. Hopefully it is trotted out but more capable. Time will tell. Some investigation showing Tory seats benefited far more than non tory seats across the UK. It was even called out in Parliament Committee’s for stagnating early this year.
Now yank the free ports deal.
Why does Wales need aid? I thought that, with our level of independence, and our fantastic socialist government, it was all beer & skittles.
Please lets have a higher standard of trolling.
Have you no pride in your work.
Or are you scrapping the bottom of the barrel already.
Exactly – or so we are told! It has not proved to be however. Easy to blame UK government for poor administration in Wales.
50% of my taxes go to Wales however I have yet to see efficient running of the devolved parts of the Welsh economy.
We haven’t got independence.
Not yet anyway !
We cannot raise or use our income tax effectively as we are forced to hand our wealth to the UK government.
Does Cymru need to pay for the renew of nuclear weapons – many larger countries are nuclear free.
Do we need to pay for even more infrastructure for the South east of England.
We need the same sovereignty as Norway, Denmark or Sweden.
First of it is a Labour government in name only same suit as Tories Different tie both parties UNIONIST in other words for England its been the same for the last couple of hundred years take take from Wales the only way out IS TO GET OUT OF THE DISUNITED KINGDOM
You get what you voted for.
Hardly surprising. Labour today are the same as the tories, monetarist neo liberals pushing the same economic nonsense that has destroyed our infrastructure and sucked the wealth up to the few leaving the rest of us fighting each other over crumbs. Successive Chancellor would have us believe that they operate the economy like a household budget with money in (tax) and money out (expenditure). Ignoring the fact that most households cannot print their own money to invest in growth and development like the government can but wont, except to give it to the banksters in the form of quantative easing.… Read more »
Now is the time for those Plaid MPs to start earning their keep and remind Westminster that we are still here
Too busy dozing on the bench, or schmoozing with Labour friends.
Since when did Cwmbran (New Town) been left behind…Pontypool has and is now a disgrace,
We have never heard a word from any Councillor about the state of the town? They should be ashamed of themselves and are a disgrace!!!
Two governments working together ????
More like a large centralised controlling boss and another only receives what is given.
In 2026, vote in a new Senedd to reject this unequal arrangement.
An independent CYMRU.
They’re listening to the siren song of the Etonian cabal running Whitehall: “the Cons have bankrupted the economy! It’s too late for the nations and regions! Abandon them! Divert all funds to the capital! You must save London!”
It’s time to call in the IMF.
Where the hell are Welsh Labour in all of this?
Time for getting out of the UK, and getting rid of Welsh Labour. This is ridiculous.