Monmouthshire County Council will channel £1.7 million into initiatives designed to assist disengaged youth, strengthen the food and hospitality sectors, and create commercial premises during the 2026/27 financial year.

The allocation comes from the UK Government’s Local Growth Fund, which supersedes the Shared Prosperity Fund established under the previous Conservative administration.

The authority has pinpointed eight programmes it aims to continue supporting through the £1.7 million, with spending requirements split between infrastructure investment and operational expenses at a 70-30 ratio respectively.

The biggest portion, totalling £625,335, will fund the development of strategic locations aimed at stimulating economic activity, encompassing town centre areas. A further £420,000 has been designated for establishing a vocational training facility.

According to Labour cabinet member responsible for economic affairs Councillor Paul Griffiths, the training hub will enable residents to pursue qualifications including apprenticeships without needing to relocate outside the county.

Capital investment of £115,000 plus £56,141 in revenue funding will support visitor economy and cultural heritage initiatives, while £146,626 altogether will back expansion plans for food-related enterprises.

Additional beneficiaries include individuals currently outside the workforce, particularly those aged 16 to 18 who are not engaged in schooling or training, people with disabilities, women and those from minority ethnic communities. Financing will also be accessible for agricultural research and assistance to enterprises including social firms.

The programme was established to substitute for regeneration and economic development financing previously provided by the European Union following Britain’s departure from the bloc.

The upcoming financial year is designated as a transitional period as the Local Growth Fund becomes operational, with funds again routed via the Welsh Government.

From 2027/28 onwards, expenditure is planned to be coordinated regionally through joint committees uniting local authorities, with the Cardiff Capital Region covering South East Wales.

In a report to cabinet, director for education and economy Will McLean mirrored concerns previously expressed by Torfaen officials that the funding structure heavily favours capital expenditure, representing one-time costs, and prioritises regional objectives over local needs.

McLean stated that ambitions to distribute growth funding through regional Combined Joint Committees from 2027/28 onwards risk diminishing local capacity and the ability to make localised decisions.

Observations were also made that the overall allocation of £547 million across Wales over a three-year period represents a substantial decrease compared to prior funding mechanisms.

£2 million allocated for urban enhancements, including the conversion of a large vacant retail unit

£2 million allocated for urban enhancements, including the conversion of a large vacant retail unit

Green light given for schemes in three towns and one village to improve pedestrian accessibility

Green light given for schemes in three towns and one village to improve pedestrian accessibility

Authority may purchase affordable property directly to use as short-term housing

Authority may purchase affordable property directly to use as short-term housing

Deputy leader Cllr Griffiths informed cabinet he supported the decision restoring Welsh Government oversight of economic development funding distribution, mirroring arrangements that existed during EU funding periods.

Having previously served as an adviser to the Welsh Government, Cllr Griffiths had opposed the previous Conservative UK Government’s assumption of programme management responsibilities, stating that while the Shared Prosperity Fund operated under Whitehall direction, the Local Growth Fund would be administered within Wales, by Welsh institutions and for Welsh communities through the devolved administration.

Cabinet additionally sanctioned commitment to cover staff salary obligations should formal funding confirmation not arrive before March’s conclusion, based on assurances received.