Monmouthshire MP Catherine Fookes has said that Wales’s Local Growth Fund will bolster regional economies throughout Gwent and increase productivity rates.
At Wales Office Questions in Westminster, the Monmouthshire MP expressed gratitude to Welsh Secretary Jo Stevens for setting up and launching the fund. She also acknowledged the partnership between the UK and Welsh governments. During the session, Catherine Fookes asked what steps were being taken to support economic growth in Wales. Jo Stevens responded that the government is creating tens of thousands of high-quality jobs across Wales, including offshore wind in the Celtic Sea, nuclear power at Wyfred, IF growth zones, free port investment zones, rail enhancements, a defence growth deal and rail strategy. Stevens said their vision for economic growth in Wales is unashamedly ambitious and is already delivering results.
The Local Growth Fund (LGF) for Wales comprises a £547 million commitment from the UK administration, with operations planned from April 2026 until March 2029. This programme takes over from the Shared Prosperity Fund (SPF).
Funding will be allocated across three core priorities: support for thriving and competitive businesses, skills training and job assistance, and physical infrastructure building.
The programme seeks to devolve power to Welsh areas and direct spending towards zones showing the greatest need to raise productivity, encourage company growth, and create better-paid jobs.
Following the funding agreement with the UK administration, distributions will be decided through bespoke investment plans detailing local needs and opportunities. Spending will correspond with regional economic strengths and potential, including sectors such as advanced manufacturing and clean energy.
This represents the first time since Brexit that decisions about these substantial regional economic development resources will return to the Welsh Government.
Ms Fookes expressed satisfaction with the Welsh Secretary’s response, saying she was pleased to see the secretary launch the Local Growth Fund in Wales that week and to boost growth and investment in local economies. She noted this was on top of local Welsh place-making grant funding and UK government pride and place funding, which gives £1.5 million to her constituency.