Serious concerns have been raised by a Senedd Committee about the performance of Welsh City and Regional Growth Deals, particularly the North Wales Growth Deal and the Cardiff Capital Region City Deal.
The North Wales Growth Deal has struggled because one of its key projects, Trawsfynydd, has fallen though. So far the deal has only created 35 jobs and needs urgently turning round if it is to deliver for the people of North Wales. Meanwhile the Committee is concerned about the scale of funding required for the Cardiff Capital Region’s redevelopment of the Aberthaw Power Station, and the impact it could have on public finances.
The Senedd’s Economy, Trade and Rural Affairs Committee has written to the Welsh and UK Governments, urging closer monitoring of investments in the four Welsh City and Regional Growth Deals, which are accountable for a substantial amount of public funding.
Andrew RT Davies MS, Chair of the Senedd’s Economy, Trade and Rural Affairs Committee said:
“The four City and Growth Deals should be a key driver for economic growth in Wales and be creating a bright economic future. While there are promising signs, particularly in Swansea Bay, we must address serious concerns particularly in North Wales and Cardiff Capital Region, and we are asking the Welsh and UK Government for urgent clarity about the funding available for the North Wales deal.
“Proper monitoring and consistent leadership are essential to ensure all Deals are supported to reach their ambitious targets and deliver on the significant public investment. Transparency, clarity, and long-term vision are essential.”
'Health check'
During the 2025 summer term, the Committee sought an update from the Deals and stakeholders to undertake a quick ‘health check’ on progress. The letter calls on the Welsh and UK Governments to respond to the issues raised and outline how they will support the Deals going forward.
North Wales Growth Deal
The Committee expressed serious concerns about the North Wales Growth Deal, which is significantly behind targets for job creation and private sector investment. The decision by Great British Nuclear not to pursue Trawsfynydd as a site for Small Modular Reactors has had a major impact, with the project originally accounting for 12.5% of job targets and 40% of investment goals. Ambition North Wales reported only 35 jobs created to date and just £1.8 million in private sector investment. The Committee is calling for urgent clarity on funding and a review of decision-making processes.
Cardiff Capital Region
Cardiff Capital Region faces major challenges with its redevelopment of the Aberthaw Power Station site. A procurement dispute led to a £5.25 million settlement and an independent review is underway. The site, purchased for £8.6 million with £30 million allocated for demolition, may require over £1 billion to fully develop. Despite strong investor interest, the Committee is concerned about the scale of funding needed and the potential impact on public finances.
Swansea Bay City Deal
The Committee welcomed progress in Swansea Bay, with 896 jobs created and £133 million in private investment. Members praised the Deal’s support for Port Talbot and Tata Steel workers. However, concerns were raised about inflation impacts and the lack of flexibility in funding compared to other Deals.
Mid Wales Growth Deal
As the newest Deal, Mid Wales has just entered its delivery phase. The Committee noted its unique economic challenges and its decision not to transfer management to a Corporate Joint Committee. The Committee will monitor this governance approach and urges governments to do the same.
