News

Welsh Conservatives condemn £38m cut in new ‘Local Growth Fund’ for Wales

Published

7 months ago

October 15, 2025

THE WELSH CONSERVATIVES have launched a strong attack on the UK Government’s new funding scheme for Wales, accusing ministers of breaking promises and delivering a real-terms cut to investment.

Under the previous post-Brexit replacement for EU regional funding — the Shared Prosperity Fund — Wales received around £585 million over three years. Under the newly introduced Local Growth Fund, that allocation falls to £547 million over the same period — a reduction of £38 million.

The announcement has triggered political controversy in both Cardiff Bay and Westminster, as parties debate whether the change represents a meaningful cut or a technical adjustment within the post-EU funding regime.

Funding framework and government response

The UK and Welsh Governments have jointly agreed a framework for the Local Growth Fund, with decisions on its deployment devolved to Cardiff.

According to the Welsh Government, the fund will support growth, productivity, and local priorities — including infrastructure, skills, innovation, and investment in key sectors such as artificial intelligence and biotechnology.

First Minister Eluned Morgan acknowledged the settlement is “slightly smaller” than before, but stressed that Wales would still receive about 22 per cent of the UK-wide fund. She said funding would “reach all parts of Wales” and that devolved decision-making would ensure investment matched local priorities.

UK Secretary of State for Wales Jo Stevens said the new approach reflected “a commitment to local democracy,” adding: “Decisions are best made by people in Wales.”

Despite those assurances, opposition politicians say the reduction amounts to a broken promise and a warning sign of tighter budgets ahead.

Tory outcry over ‘broken promises and vanity projects’

Samuel Kurtz MS, Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, issued a stinging statement accusing Labour of giving Wales “tens of millions of pounds less” than under the previous scheme.

“The Welsh Labour Government getting to hold the purse strings does not fill me with hope,” he said. “They routinely waste taxpayers’ money on vanity projects — or on non-devolved areas like their pointless overseas embassies and Ugandan tree planting.”

Mr Kurtz said the reduced funding would harm Welsh businesses already under pressure from what he called “higher taxes imposed by Labour Governments at both ends of the M4.”

Impact and unanswered questions

Local authorities and development agencies are now assessing how the lower funding total will affect projects. Key questions remain over how much will be allocated to capital works — such as roads, broadband and premises — versus revenue funding for skills and business support.

There is also uncertainty over how funds will be distributed across regions and whether inflation and rising public-service costs will further erode the real value of the grant.

With Labour holding only 29 of 60 Senedd seats, ministers will need opposition support to pass next year’s budget — making the Local Growth Fund a likely flashpoint in the coming financial debates.

Long-term tensions over regional funding

The dispute highlights long-running tensions about how regional development money is shared across the UK.

Under the EU’s structural funds, Wales received billions in direct investment via Brussels. The Shared Prosperity Fund was meant to replicate that model domestically, but the shift to a “Local Growth Fund” marks a move towards centralised, outcome-based competition.

Critics warn the new system could disadvantage smaller or rural areas, particularly given delays and underspending in earlier “Levelling Up” schemes. With Wales’ economy heavily reliant on infrastructure investment, many warn that even modest cuts could have outsized effects.

Some Plaid Cymru and Welsh Labour backbenchers have already called for full devolution of replacement-fund control, arguing that decisions about Welsh priorities should rest entirely in Wales.

What happens next

The Welsh Government says it will launch a public consultation later this month to shape how the Local Growth Fund is spent. Local authorities, businesses and community groups will be invited to submit proposals for regional investment.

As the Senedd begins its 2026-27 budget process, attention will focus on whether the smaller funding pot can sustain existing projects — or whether Wales will face another round of spending squeezes.

For now, the £38 million reduction has ignited a wider debate over who really controls Wales’s economic destiny — and whether devolution of the purse strings will empower communities or simply shift the blame for austerity closer to home.

Business

Plaid energy policy challenged by Labour after Adam Price interview

Published

7 hours ago

May 24, 2026

Tom Sinclair

LABOUR SAYS MINISTERS MUST EXPLAIN COST AND TIMETABLE FOR PYLON PLANS

PLAID CYMRU’S approach to energy infrastructure has come under scrutiny after Energy Minister Adam Price was challenged over plans to reduce the use of overhead pylons in Wales.

Mr Price defended the Welsh Government’s position during an appearance on BBC Radio Wales’ Sunday Supplement, arguing that communities must have greater confidence in how major grid projects are handled.

Plaid Cymru has pledged to give communities a stronger voice over energy developments and to look more closely at alternatives to overhead transmission lines, including underground cabling where possible.

The issue has become increasingly sensitive in rural parts of Wales, where proposed pylon routes linked to renewable energy schemes have raised concerns about landscape impact, tourism and local consultation.

However, Welsh Labour said the minister had failed to explain when any restriction on pylons would take effect, or who would pay the additional cost of placing cables underground.

A Welsh Labour spokesperson said: “Adam Price keeps saying how clear their manifesto was and yet he won’t say when they’re banning pylons. They won’t say who is paying for the extra cost of undergrounding cables.

“Without certainty, companies won’t invest. That’s thousands of clean, green energy jobs at risk. Plaid need more than a plan to have a plan.”

Labour said the Welsh Government must now set out how its policy would work in practice, including whether it amounts to an outright ban, what exemptions would apply, and how any extra costs would be funded.

The debate highlights the challenge facing ministers as Wales seeks to expand renewable energy generation while addressing public opposition to large-scale grid infrastructure.

Community

Pembroke Fair praised as well-organised community event

Published

8 hours ago

May 24, 2026

Tom Sinclair

HORSES, STALLS AND FAMILY CROWDS RETURN TO MONKTON

FAMILIES, horse owners and visitors turned out in force for Pembroke Fair on Saturday (May 23), with many praising the event as one of the best organised in recent years.

Held at the Community Centre Field in Monkton, the annual fair brought together horse owners, traders and local families for a traditional day centred around horses, ponies, stalls and socialising.

Coloured cobs, heavy horses, ponies and horse-drawn traps attracted attention throughout the day, with many visitors gathering around the field to watch the animals being shown and led around the site.

A variety of stalls selling everything from clothing and ornaments to tack and second-hand goods helped create a lively market atmosphere, while food vendors kept visitors fed throughout the day.

Despite overcast conditions at times, the event remained busy, with many attendees staying for several hours to enjoy the traditional fair atmosphere.

Community members later took to social media to praise the smooth running of the event, with several publicly thanking organiser Charlie Price for his efforts in bringing the fair together.

Comments described the day as “well organised” and praised the welcoming atmosphere, with many saying it was encouraging to see a long-standing local tradition continuing to thrive.

The fair once again brought together members of the travelling community, local residents and horse enthusiasts from across west Wales.

A horse drive was also due to take place on Sunday (May 24), continuing the weekend’s celebrations.

Photo captions:

Traditional gathering: Horses, ponies, horse-drawn carts and market stalls drew crowds to Pembroke Fair in Monkton on Saturday (Pic: Herald).

News

Watchdog criticises health board over £10m GP contract checks

Published

2 days ago

May 23, 2026

Tom Sinclair

A HEALTH board has been criticised by Audit Wales after GP contracts worth more than £10m were awarded without sufficient due diligence checks.

Aneurin Bevan University Health Board allowed a GP partnership associated with eHarley Street Primary Care Solutions to take on eight GP contracts in south-east Wales, with a combined annual value of around £10.1m.

Audit Wales said the board should have carried out greater scrutiny before approving the arrangements, including checks on financial resilience, workforce plans, business risks and the partnership’s ability to manage several practices at once.

However, the watchdog found no evidence of fraud and noted the board was dealing with significant pressure in general practice, including vacant contracts and limited interest from other bidders.

The report said weaknesses in governance and scrutiny contributed to later disruption and uncertainty for patients and staff when problems emerged.

Concerns included financial and workforce pressures, unpaid invoices, and issues relating to tax and pension payments. Some contracts were later handed back, requiring the health board to step in to protect services.

Natasha Asghar MS, Welsh Conservative Shadow Cabinet Minister for Health and Social Care, said the findings were “deeply concerning”.

She said: “Patients and staff were left facing disruption and uncertainty because proper scrutiny was not carried out before these contracts were awarded.

“The Welsh Conservatives believe lessons must be learned to ensure robust checks are in place, protect frontline services and restore confidence in primary care across Wales.”

Aneurin Bevan University Health Board accepted the recommendations and said it had already strengthened its processes.

Audit Wales said the case highlighted the need for stronger checks before GP contracts are transferred, particularly when a single partnership is taking on multiple practices in a short period.