The UK Government has approved its remaining financial commitment to the £1.2 billion City Deal for the Cardiff Capital Region, following a second gateway review.
City Deal Background
The City Deal for the 10 local authorities of southeast Wales that make up the Cardiff Capital Region was signed off in 2016. Both the UK and Welsh governments committed £500 million each, with the 10 councils collectively adding £120 million.
Around two-thirds of the City Deal, some £734 million, was ringfenced for the £1.1 billion South Wales Metro electrification project. That left just under £500 million in the City Deal's wider investment fund, for which the region has established a number of evergreen funds – with returns reinvested for new projects and investments – including a property and an equity fund.
Gateway Review Process
The Cardiff Capital Region last year became a statutory body – one of four corporate joint committees in Wales – with planning, economic, and transport responsibilities. The UK Government funding from the outset was subject to gateway reviews, with the city region successfully coming through the first assessment in 2021.
The clearing of the second gateway, which looked at areas such as governance and economic impact, now allows for the remaining £134 million of UK Government funding to be committed to the city region over the next five years. It is not additional money but what was committed in 2016 subject to gateway reviews.
Impact and Reactions
Mary Ann Brocklesby, chair of the Cardiff Capital Region and leader of Monmouthshire Council, said: "We have come a long way since our first gateway review and are proud this independent assessment recognises the impact of Cardiff Capital Region's investments. We have created and safeguarded more than 5,000 jobs, supported over 2,700 people to upskill or reskill, and delivered more than 83,000 square metres of new space, boosting private investment and business confidence across southeast Wales. We are proud that our investments are helping build a more resilient regional economy and deliver lasting benefits for our communities."
