, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
So, I can update. Unfortunately, we haven't had any positive progress in that space. I have made the case to the UK Government—I've written to the Secretary of State, Steve Reed. I think we've got a meeting coming up at the start of February as well. We…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
So, we're at the point at the moment of discussing a memorandum of understanding with the UK Government, and that will formalise arrangements to ensure that our expectations are aligned. But they are standard practice, where we are using UK Government wider…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
In terms of agreeing the returning of decision making, Welsh Government is the accounting officer for the £547 million fund, but the relationship that we have is broadly similar to the structural funds era. So, what it does mean is that there will be a very…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
So, the intention at the oral statement is to set out the direction following the consultation. But just to remind colleagues that we've agreed with local government for a further transitional year, at their request. So, the decisions for years 2 and 3 will…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
So, in our consultation, the investment priorities and objectives listed offer capital opportunities to help businesses to grow, to ensure there's investment in developing strategic sites, which is something that we talked about earlier in relation to the…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
I think the fact that the key things that we've said that we wanted to address in our consultation—that we talked about, that we'd want our funding to address—would be productivity and economic inactivity should give that level of reassurance that that is a…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
Well, we're currently considering the methodology for funding from years 2 to 3 onwards, and this is subject to Cabinet discussion, so just to give you a flavour, but to reassure you that the Welsh index of multiple deprivation is an important factor in terms…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
We were really keen to learn the lessons of what's gone before, in terms of previous EU funding, but then also the shared prosperity fund. We wanted to avoid what was seen as the overcentralisation, which was a criticism of EU funds, but then also avoid some…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
Yes.
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
Yes, shortly.
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
We had just over 150 responses to the consultation. Alongside that, we held some regional consultation events—over 200 people participated in those. Also, we've got the regional investment steering group, which is chaired by Carolyn Thomas. That's been really…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
Yes, certainly. It is worth as well mentioning that Wales has recorded areas of improvement in productivity over recent years. Labour productivity grew faster between 2009 and 2023 in Wales, with an increase of 14.1 per cent, compared to the UK as a whole…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
I would say that Wales has seen significant progress over the last 20 years, or since devolution, in fact, in terms of reversing trends, or certainly reversing gaps, in unemployment, and, until the pandemic, in terms of economic inactivity. What we really…
, Economy, Trade, and Rural Affairs Committee
Local Growth Fund
Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning.
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
As I say, I've taken it up with the Secretary of State. I don't think you can overestimate how important that very local knowledge is and hearing from people directly embedded first-hand within the community. We have had people attend the transition board…
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
We do know that the three steel unions are represented on that board, but, as you say, I received the same representations that the committee has received. I think the committee, and we did also, wrote to the Secretary of State on that, as the chair of the…
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
Again, I think there is some inevitability there, because we know that some workers will be employed at Hinkley Point, for example, so really significant journeys for them to make, but really highly skilled and sought-after roles there as well. We'll try and…
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
So, at the moment we don't have the data. I understand that there's further data available in February, in terms of some of those outcomes, but I'll ask Aine to say a little bit more about what data might be coming forward in terms of the workforce. I think…
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
As far as I'm concerned, things are on track, and we will have that MOU signed shortly, but I don't want to make myself a hostage to fortune for any particular timescales today. So, I would hope so.
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
I would certainly hope so.
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
Both MOUs are, I would say, imminent, and that will allow then the release of the £25 million seed funding for each of the free ports. But just to reassure you that that's imminent.
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
So, investment in the port is going to be absolutely critical, and this takes us back to that point, actually, that not only do developers need that certainty of the pipeline in order to invest, the ports need it as well. We've been ensuring that there are…
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
Again, assembly and the ongoing operations and maintenance, alongside some parts of the supply chain—we think those are areas where there is real potential here in Wales. Part of the work that we've been doing, of course, has been around the ports prospectus…
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
I think the impetus in those meetings is to make sure that UK Government understands the Welsh perspective and that there are some things that matter particularly to us here in Wales. Tariffs on UK steel into the US, we understand, will remain at 25 per cent…
, Economy, Trade, and Rural Affairs Committee
Future of Welsh Steel
I think both the UK and the EU will have similar concerns around global overcapacity in relation to steel. So, I think that could be an area, actually, where there is common understanding and a keenness to work together. I hope very much that that's the case…
