The newly announced £1.2billion City Deal for the Cardiff Capital Region will see investment in infrastructure, innovation and learning.
The Cardiff Capital Region spans Bridgend to the west, Merthyr to the north and Monmouth to the east. The investment aims to create 25,000 new jobs and draw a further £4billion in private investment riding on the back of a stimulated local economy.
The headline figure of £1.2billion breaks down as follows:
– £325m investment in the electrification of Valleys rail lines to increase capacity.
– £400m to deliver a region wide Metro system to improve buses and light rail transport.
– £495m to projects including a new Innovation District and software academy.
The £1.2billion investment comes from UK and Welsh Government contributions of £500million each and contributions of £120millon from the ten local authorities in the Cardiff Capital Region
Secretary of State for Wales Stephen Crabb:
“Cardiff is one of Europe’s youngest and most dynamic capital cities, with a growing international profile and a burgeoning reputation as a destination for businesses to invest.
The City Deal provides the springboard for Cardiff to emerge as a leading engine of growth in the UK. It will help transform Cardiff city region, expecting to unlock billions of pounds of private sector finance and deliver thousands of new jobs in South Wales.
Wales is a small country and we pack a much bigger punch when we work together. This genuine partnership between the UK Government, Welsh Government and ten local authorities in South Wales will help the Cardiff city region to realise its full potential.
It represents the confidence that the UK Government has in empowering local decision makers to find their own ways to deliver economic and civic improvements that could benefit virtually half the population of Wales.”
The First Minister of Wales Carwyn Jones:
“We have lobbied hard for a City Deal for the Cardiff Capital Region and put more than £500m on the table to support improving transport infrastructure within the region. Today’s announcement sees that vision become a reality – it is a vote of confidence in the region and a huge economic boost.
Central to the success of a City Deal is the close collaboration and partnership between all ten local authorities. It is a great example of what can be achieved by coming together for the greater good of our Capital region.”
Chief Secretary to the Treasury, Greg Hands:
“I’m very proud to be able to sign this historic deal – the first of its kind in Wales. The UK Government’s £500m investment in the economy of South East Wales will help ensure that the infrastructure and transport links in the region come up to the standard that local people and businesses deserve.
It’s vital that those making these decisions are local leaders, the people that know Cardiff and the wider region best.”
Councillor Andrew Morgan, Chair of the City Deal Leaders Group and Leader of Rhondda Cynon Taf County Borough Council:
“This is a momentous day for the Cardiff Capital Region for many reasons.
The City Deal should enable us to unlock significant economic growth, and bring about social improvements and regeneration.
It will see a new form of regional governance with collaboration between the local authority partners, and close working with business and further and higher education.
The partners would like to pay tribute to the hard work undertaken by the City Deal team, especially the local authority officers involved.
We would also like to thank the UK and Welsh Governments for their support, and their confidence in the City Deal team to now deliver this exciting programme.”
Our view at Whiteoak Morris is that it is good old fashioned Keynesian economics for a government to invest in developing infrastructure during an economic lull in order to stimulate economic activity. This announcement is welcome positive news for the region and looks to the future as Cardiff is forecast to increase in population by more than 25% over the next 20 years – one of the fastest rates in the UK.