Welsh counties on brink of approving grant scheme for small manufactures

Alec Doyle – Local democracy reporter

Two Welsh counties are on the brink of approving a new grant programme for small manufacturers as part of a new investment zone.

The Advanced Manufacturing Investment Zone (IZ) is a project across Wrexham and Flintshire that designates specific areas – Deeside Gateway, Deeside Industrial Park, Wrexham Industrial Estate and Warren Hall near Broughton – as low tax zones with exclusive access to grant funding and support.

The aim is for the zone to attract £1 billion of investment and create around 6,000 jobs.

The first of the funding opportunities expected to be launched is the Small to Medium Manufacturing Grant.

The fund will cost an initial £6m – which will be split 50-50 between Wrexham and Flintshire’s share of £160m of UK Government funding to support the IZ.

Wrexham County Borough Council’s Executive Board approved the scheme last week and now Flintshire County Council’s Environment and Economy Overview and Scrutiny Committee has recommended that Cabinet approve the grant programme next Tuesday.

It will offer smaller manufacturing businesses grants of up to £100,000 to purchase equipment, secure accreditations and training they need to be accepted into larger firms’ supply chains and to help them adapt their premises or processes to produce less carbon.

Niall Waller, Flintshire’s enterprise and regeneration manager told a recent meeting of Flintshire counciilors: “We are close to approval on the Flintshire and Wrexham Investment Zone and funding from UK Government is likely to arrive with the North Wales Ambition Corporate Joint Committee in the next few weeks.”

“This proposal is the first of the investments – a proposed grant for small to medium sized manufacturing enterprises. That makes up most of our manufacturing businesses.

“We’re proposing the grant runs initially for three years and then it’s considered whether it’s proving to be effective.”

Around 800 small businesses across Flintshire  and Wrexham would be eligible for funding under the scheme.

Cllr Dan Rose asked whether it was possible to place any ethical requirements on the criteria for funding – concerned that defence manufacturers or those who make products carrying a health risk, such as vapes, could be funded.

“We are a defence industry cluster and we have businesses that are part of the supply chain for defence, it would be difficult to rule them out,” said Mr Waller.

Chief Officer for Place and Growth David Fitzsimon also said making ethical judgements would be challenging at a local level.

“I think the difficulty is how you define and assess that,” he said  There’s also a timescale issue in terms of us executing within a reasonable timescale.”

Cllr Rose also raised concerns about investing in advanced manufacturing – which often includes automation – and the impact of the IZ’s goal of creating 6,000 jobs.

“Automation is a tricky point,” said Mr Waller. “Improving efficiency can mean loss of jobs so it is something we are mindful of. There is a risk there we have to balance.”

Cllr David Coggins Cogan wondered if the funding limit was enough for the types of businesses eligible, but also asked whether there was a clawback clause in case items invested in by the fund were moved out of the county.

“Will there be provisions that equipment bought through the grant would be retained in Flintshire, it couldn’t be shipped to, say, Portsmouth?

“Also I think because one of the priorities is capital funding, I’m not entirely certain that £100,000 is suitable for advanced manufacturing needs, I’d be looking at maybe £150,000 or £200,000. I’d be happy to support a higher amount.”

Mr Waller confirmed there were clauses in the grant agreements to ensure clawback over five years .

Cllrs Chris Bithell and Mike Peers both raised the issue of local recruitment and apprenticeships – but were told that this was dealt with in a future strand of funding.

If Flintshire Cabinet approves the scheme next week, the first grants could be issued in January 2026.