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West Wales doing well, but serious concerns raised over other Welsh Growth Deals

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Senedd Committee warns North Wales and Cardiff schemes face major risks as Swansea Bay projects, including Pembroke Dock Marine, move forward

A SENEDD Committee has raised serious concerns about the performance of Welsh City and Regional Growth Deals, with particular criticism of the North Wales Growth Deal and the Cardiff Capital Region City Deal.

The Economy, Trade and Rural Affairs Committee has written to both the Welsh and UK Governments urging urgent monitoring of the deals, which are responsible for delivering economic growth with substantial amounts of public funding.

What are Growth Deals?

City and Growth Deals are agreements between governments and local regions to boost economic growth through long-term investment in infrastructure, skills, and innovation. Introduced in the UK in 2011, they are designed to bring together councils, business, and education institutions.

In Wales, four Growth Deals cover every region: Cardiff Capital Region, North Wales, Swansea Bay, and Mid Wales. Collectively, they represent more than £2.5 billion in investment when UK and Welsh Government contributions are combined with private sector funding.

North Wales Growth Deal behind targets

Collapsed: The Trawsfynydd nuclear project

The North Wales Growth Deal, signed in 2020, has a budget of £240m from both the UK and Welsh Governments over 15 years. It set out to create up to 4,200 jobs and generate £1bn in private sector investment.

But the collapse of the Trawsfynydd nuclear project has left it far short of targets. The project was expected to deliver 12.5% of job targets and 40% of investment goals. With Great British Nuclear deciding not to pursue the site for Small Modular Reactors, Ambition North Wales has so far reported only 35 jobs created and £1.8m of private investment.

The Committee has called for urgent clarity on funding and a review of decision-making processes.

Cardiff Capital Region concerns

The Cardiff Capital Region City Deal, signed in 2016, involves £1.2bn of investment, including £375m from the UK Government and £375m from local councils.

Its flagship project, the redevelopment of the Aberthaw Power Station site, is facing major challenges. The site was purchased for £8.6m, with £30m earmarked for demolition, but the overall cost could exceed £1bn. A procurement dispute has already cost £5.25m in settlement, and an independent review is now under way.

While there has been strong investor interest, the Committee warned of risks to public finances due to the scale of funding needed.

Swansea Bay progress

By contrast, the Swansea Bay City Deal — which covers Swansea, Neath Port Talbot, Carmarthenshire and Pembrokeshire — has been praised for its progress. It is worth £1.3bn, including £241m from each of the UK and Welsh Governments.

So far, 896 jobs have been created and £133m of private investment secured. The Deal has also been highlighted for its support to Port Talbot and Tata Steel workers during a period of major uncertainty for the steel industry.

However, the Committee warned that inflation is squeezing budgets and said the Deal needs greater flexibility in funding.

Theresa May signing the Swansea Bay City Deal as Prime Minister in 2017

What it means for Pembrokeshire

For Pembrokeshire, the Swansea Bay Deal is critical. The county is central to one of its flagship projects — Pembroke Dock Marine. This £60m development is designed to make Pembrokeshire a world leader in marine energy innovation, building on the county’s deep-water port facilities and expertise in renewables.

The project brings together Milford Haven Port Authority, Marine Energy Wales, ORE Catapult, and Wave Hub. It aims to create high-value jobs in research, testing and deployment of marine technologies, including floating offshore wind.

Other Pembrokeshire-linked schemes include investment in digital infrastructure and innovation centres that could benefit rural communities and local businesses.

With the Senedd Committee sounding the alarm about funding risks in other regions, questions will be asked about whether future Welsh and UK Government support could be diverted away from west Wales. Local leaders have long argued that Pembrokeshire needs sustained investment to unlock its potential in green energy and ensure that the marine sector delivers long-term jobs.

Mid Wales enters delivery phase

The Mid Wales Growth Deal, covering Powys and Ceredigion, was signed in 2020 with £55m each from the UK and Welsh Governments. It has only just entered its delivery phase and has not yet transferred to a Corporate Joint Committee model.

The Committee said it will closely monitor its progress given the unique economic challenges in mid Wales.

Committee chair speaks out

Andrew RT Davies MS, Chair of the 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.

“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.”

The Committee has asked both governments to respond to its concerns and outline how they will ensure Growth Deals deliver for all regions of Wales.

 

Business

Cardiff airport investment under fire as Qatar link stalls despite £400m public backing

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Ministers admit no meetings with airline that once received Welsh Government marketing support

THE FUTURE of Cardiff Airport’s long-haul ambitions has been thrown back into the spotlight after Welsh ministers admitted they have not personally met Qatar Airways executives — despite the airline once operating the airport’s flagship international route and benefiting from a publicly funded marketing partnership.

The admission has prompted fresh questions over whether taxpayers are getting value for the almost £400 million of public money that has been invested in the airport since it was bought by the Welsh Government in 2013.

South Wales Central Conservative MS Andrew RT Davies said the lack of direct engagement was “unacceptable”, arguing that ministers had failed to prioritise restoring one of Wales’ most important global connections.

In written questions to Economy Minister Rebecca Evans and Transport Minister Ken Skates, he asked how many times they had met Qatar Airways since August 2024.

Both confirmed they had not held any meetings.

Ms Evans said commercial negotiations are led by the airport’s executive team and added she would “very much welcome” the route’s return when the time is right.

Mr Skates said responsibility for the airport sits outside his portfolio and declined to comment further while discussions are ongoing.

Flagship route

Qatar Airways launched daily flights between Cardiff and Doha in 2018 to considerable fanfare.

At the time, ministers described the service as “transformational”, linking Wales directly to one of the world’s biggest aviation hubs and providing one-stop access to more than 150 destinations across Asia, Australia, Africa and the Middle East.

Business groups said the route would make Wales more attractive to inward investors and exporters, while tourism chiefs hoped it would bring higher-spending international visitors.

To promote the link, the Welsh Government entered into a two-year marketing partnership with the airline, understood to be worth around £1 million, aimed at raising Wales’ profile overseas and encouraging travel through Cardiff.

The agreement funded joint advertising and promotional campaigns in international markets.

However, the route operated for less than two years before being suspended at the start of the Covid-19 pandemic in 2020.

While Qatar Airways has since restored flights to other UK airports including Heathrow, Manchester and Birmingham, Cardiff remains the only former UK destination where services have not resumed.

Press event celebrating two years of Qatar flying from Cardiff to Doha in 2019

Value for money questions

The situation has reignited debate over whether the public investment delivered lasting benefits.

Critics say the combination of direct airport funding and marketing support should have secured a more sustainable presence from a global carrier.

They question whether the advertising partnership represented value for money if the route ultimately disappeared and has yet to return.

Passengers got given complimentary cupcakes in 2019

For some observers, the absence of Qatar has become a yardstick for judging the success of government ownership.

After more than a decade and hundreds of millions of pounds in loans and support, they argue, Wales should be seeing stronger international connectivity rather than retreat.

Supporters counter that the pandemic severely disrupted aviation worldwide and that rebuilding routes takes time, particularly for smaller regional airports.

They also note that commercial airline negotiations are typically handled by airport management rather than ministers.

A Qatar plane heading of Doha in 2019

Passenger recovery

Cardiff Airport was purchased by the Welsh Government for £52m to prevent its closure and safeguard jobs.

Since then it has required repeated financial support packages to maintain operations and invest in infrastructure.

Passenger numbers remain below pre-pandemic levels, and the airport continues to compete with Bristol, which offers a far wider range of routes and attracts many Welsh travellers across the border.

Industry analysts say long-haul services such as Doha are especially important because they connect regions directly to global markets without relying on London hubs.

Without them, airports risk being seen as secondary or feeder operations.

Political pressure

Mr Davies said the government needed to show greater urgency.

“Senedd ministers have ploughed almost £400 million into Cardiff Airport since they bought it – yet they haven’t even bothered to meet with a major airline to re-establish a crucial international link,” he said.

Andrew RT Davies is asking awkward questions about spending on Cardiff Airport

“When that level of public money is involved, people expect leadership.

“Getting flights back should be a priority.”

The Welsh Government maintains it remains supportive of restoring the route and says talks with Qatar Airways are continuing through airport executives.

But for many travellers and businesses, the key question remains simple: after years of investment and promises, when will Wales once again have a direct long-haul link to the world?

Until Qatar — or another global carrier — returns, critics say, that question will continue to hang over Cardiff Airport’s future.

 

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Business

Croeso awards return to celebrate Pembrokeshire’s tourism stars

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Colin Jackson to host major industry night as entries open for 2026 event

THE CELEBRATION of Pembrokeshire’s tourism and hospitality sector is officially underway as the Visit Pembrokeshire Croeso Awards return for 2026 after a two-year break.

The prestigious awards, designed to recognise businesses that go above and beyond to deliver exceptional visitor experiences, are back with what organisers describe as “fresh energy and renewed ambition”.

This year’s ceremony will be hosted by Welsh sporting legend Colin Jackson CBE, the Olympic silver medallist and former world champion hurdler, who will act as compère for the evening.

The awards will take place on Thursday (Oct 29), bringing together leading hotels, attractions, restaurants and tourism operators from across the county for a night of celebration and recognition.

Seventeen categories are open for entry, including Best Hotel, Best Place to Eat, Accessible & Inclusive Tourism Award and Rising Star, highlighting both established operators and emerging talent within the industry.

Organisers say the event is not only about rewarding excellence, but also about developing the next generation of hospitality professionals.

At the heart of this year’s ceremony is a partnership between Pembrokeshire College and the Celtic Collection. Students will gain hands-on experience in staging a live, large-scale event, working alongside front-of-house teams and industry specialists to plan and deliver the evening.

The collaboration aims to give young people practical skills while supporting the long-term future of the county’s tourism sector.

Emma Thornton, Chief Executive of Visit Pembrokeshire, said: “We are very excited to be launching our 2026 Croeso Awards building on our 2024 event through working in partnership with Pembrokeshire College and the Celtic Collection.

“We’ve taken the deliberate step to launch three months earlier than in previous years. By doing so we hope this will encourage more entries, making it much easier for businesses and organisations to submit entries well ahead of the busy spring and summer season.

“If you haven’t entered the Croeso Awards before, please make this the year that you do.”

Applications are now open via the Croeso Awards pages on the Visit Pembrokeshire website and close on Monday (March 31). The shortlist will be announced on July 1.

Support sessions to help businesses complete applications will be held every Wednesday throughout February at the Bridge Innovation Centre in Pembroke Dock.

Tickets and a limited number of sponsorship opportunities are also available.

Photo caption:

Colin Jackson CBE will host the 2026 Croeso Awards when they return this October (Pic supplied).

 

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Business

Welsh business confidence falls sharply in January

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BUSINESS confidence in Wales fell by twenty points in January, according to the latest Business Barometer from Lloyds Bank, amid weakening optimism about both trading conditions and the wider economy.

The headline confidence figure for Wales dropped to 32%, down from 52% in December 2025. Firms’ confidence in their own trading prospects fell even more steeply, down thirty points to 38%, while optimism about the wider economy declined by eight points to 27%.

Despite the downturn in sentiment, Welsh businesses reported stronger hiring intentions. A net balance of 44% of firms said they expect to increase staff numbers over the next twelve months, up twenty-four points on the previous month.

Looking ahead, businesses in Wales identified their main priorities for growth over the next six months as developing new products or services (43%), investing in staff training and skills (40%), and introducing new technology (33%).

The Business Barometer surveys around 1,200 businesses across the UK each month and has been running since 2002, providing early indicators of regional and national economic trends.

UK outlook mixed

Across the UK as a whole, business confidence slipped by three points in January to 44%. While firms’ confidence in their own trading prospects increased by seven points to 59%, optimism about the wider economy fell sharply, down fourteen points to 28%.

London recorded the highest confidence level of any UK nation or region at 68%, followed by Northern Ireland at 66% and the West Midlands at 65%.

Sector picture

Retail confidence edged up slightly in January, rising by two points to 49%. Confidence in the service sector increased by one point to 42%, marking the first rise since the summer. Construction confidence, however, fell back after a particularly strong improvement in December.

Nathan Morgan, area director for Wales at Lloyds, said the figures reflected ongoing economic pressures but highlighted some positive signals.

“Business confidence has reduced this month, reflecting wider economic headwinds,” he said. “However, hiring intentions are up sharply, with Welsh businesses planning to invest in people at scale, showing a real commitment to growth despite the challenges.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said firms were entering the year with confidence in their own trading prospects, even as concerns about the broader economy persisted.

“The first rise in confidence in the services sector in seven months is encouraging, given the sector’s central role in supporting UK economic activity,” she said.

 

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