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Welsh Government’s TVR investment probed

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TVR: Questions remain over Government role

THE WELSH G​OVERNMENT has been questioned about its investment in sports car manufacturer TVR.

On Tuesday (Jan 16), the Government announced that it had acquired a 3% stake in TVR; it has also provided a £2m loan to the company, which says there is another 12 months of research and development to go before it begins constructing cars in Ebbw Vale.

The planned TVR site was acquired by the Welsh Government last year and includes the 200,000 sq ft former Techboard building.

The terms of TVR’s lease have not been revealed by the Welsh Government. The TVR deal is part of a Welsh Government plan to build up automotive and manufacturing industry in Ebbw Vale and the surrounding areas following the Welsh Government’s withdrawal from involvement in the Circuit of Wales plan.

TVR claims that moving the car maker there will create up to 150 jobs.

However, official accounts lodged with Companies House indicate a headcount of just six jobs at TVR Manufacturing Ltd, despite that jobs pledge The headcount at its ‘parent company’, TVR Automotive Ltd was recorded as ‘0’.

Official company accounts also reveal the extent of Welsh Government financial support for TVR: Shareholding of 100,000 shares in TVR Automotive Limited (a company listed as ‘dormant’ on Companies House) £2,000,000 in the form of a ‘long term loan’ which is repayable on demand until TVR secures £5.5m in further equity funding – though the company’s accounts suggest that the Welsh Government ‘has indicated that they have no intention of demanding repayment’.

Shadow Economy Secretary – Russell George – is calling for assurances from the Welsh Government that taxpayer money is being properly safeguarded.

He said: “We need to see tangible evidence that this investment represents value for money.

“The prestige of the TVR badge is one thing – and there is understandable excitement around their decision to locate in Wales.

“However, we need to see the jobs that were promised, and as major shareholders in the company the Welsh public will want to see genuine progress.

“Ultimately, commercial common sense dictates that there must be an economic benefit to this spending.

“Millions of pounds have been invested in TVR, and the Welsh Government must ensure that this exciting project doesn’t turn into another disappointment for the people of Blaenau Gwent.”

The Welsh Government has been repeatedly criticised by the Wales Audit Office and Assembly scrutiny committees for its participation in a series of commercial investments.

A scathing report delivered in 2016 revealed that the Welsh Government had ignored the views of its own senior civil servants in saying it was pressing on with the Circuit of Wales development in the run up to the last Assembly election and blew £9.3m of public money on the scheme, including funding the acquisition of a motorcycle company in Oxfordshire.

The Welsh Government accepted ten out of eleven recommendations made by the Assembly’s Public Accounts Committee following the collapse of steel coating firm Kancoat in Swansea.

Kancoat had received £3.4m of public funds in the teeth of advice to then Economy Secretary Edwina Hart that the investment was high risk and Kancoat’s business plan was ‘weak’. Moreover, there was no record of a key meeting in which funding to Kancoat was discussed.

A 2015 report revealed that 54 companies that had received Welsh Government support had either ceased trading or become insolvent, owing the taxpayer over £11m; in 2016 Main Port Engineering in Pembroke Dock, which had received £650K from the Welsh Government the previous year went bust owing £1.1m; £1m was given to Kukd, in Cwmbran, which then outsourced jobs supposed to be in Wales.

An investment in Pinewood studios resulted in the creation of only 50 of a promised 2,000 jobs.

Business

‘Funky’ Kilgetty holiday lodge development refused

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A SECOND call to keep a ‘funky’ holiday lodge in woods near a Pembrokeshire village, previously turned down partly over a dispute on what constitutes a caravan, has been refused again.

In an application refused by Pembrokeshire County Council planners in June, Greg Baker, through agent Hayston Developments & Planning Ltd, sought retrospective permission for the creation of a second tourism unit with a bespoke fixed holiday lodge/hot tub with parking area at Cabin in The Woods, near Woodcocks House, Carmarthen Road, Kilgetty.

Work started on the scheme in April 2023.

A supporting statement through Hayston Developments & Planning Ltd said: “The current application presents a scheme to provide a second bespoke holiday unit on land in our client’s ownership. The application for a second holiday let unit is in response to demand for more ‘funky’ holiday accommodation in Pembrokeshire and the popularity of the Kilgetty area, it being central to many visitor attractions in the county.”

It said a previous 1998 application, Woodberry Cottage, has operated as a holiday let for a number of years, adding: “This remains the case and as such, the proposal is still intended to extend and complement the existing holiday letting business on the site.”

The application was refused by county planners on the grounds the scheme “is for self-catering accommodation in the form of a cabin, on the basis of information submitted with the application, this is considered to be a caravan rather than built development, as there is no robust information to demonstrate that it is permanently fixed to the ground”.

It was also refused on the grounds of being in a countryside location outside of any defined settlement boundary.

Since then, a fresh application aimed at addressing the reasons for refusal was submitted, saying works had been carried out making the lodge a fixed structure.

“Our clients have provided further information to support the claim that the holiday lodge is indeed fixed to the ground and not moveable and with the fixed decking it also clearly goes over the maximum size of a caravan,” the statement said.

It also said the development was an extension to an existing holiday business rather than one in the open countryside.

An officer report, recommending refusal, said the authority was “of the opinion that the chassis on which the cabin is built is still only bolted to the timber plates attached to the metal poles and therefore could potentially be unbolted to enable the removal of the cabin.”

It was again refused on the basis it “is considered to be a caravan rather than built development, as there is no robust information to demonstrate that it is permanently fixed to the ground,” and “The application site is located in a countryside location outside of any defined settlement boundary.”

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Community

Plan to offer construction and hospitality roles to young people in west Wales

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Government invests £820m to tackle rising youth unemployment, with targeted support across south-west Wales

YOUNG people on Universal Credit in West Wales will be offered new training and work experience placements in sectors such as construction, hospitality, and health and social care, as part of a UK Government drive to bring down rising youth unemployment.

The programme – funded from the £820m announced by Chancellor Rachel Reeves in last month’s Budget – will create 350,000 training and work-experience places across the UK, and guarantee 55,000 jobs in areas judged to be most in need from spring 2026. South-west and south-east Wales are among the regions singled out for focused support.

Ministers say the measures aim to move young people aged 16–24 off long-term benefits and into stable work. Almost one million young people across the UK are currently classed as NEET (not in education, employment or training), a figure that has been rising steadily since 2021.

Work and Pensions Secretary Pat McFadden said the new pathways would give out-of-work young people “a fair chance to make something of their lives”. The support will include a dedicated work session for every claimant aged under 25, followed by four weeks of intensive coaching before they are placed on one of six routes: paid work, work experience, an apprenticeship, wider training, classroom learning, or a workplace-based training scheme with a guaranteed interview.

Focus on sectors vital to the West Wales economy

For West Wales – where seasonal work, rural isolation and limited transport links have long affected youth employment – the concentration on construction, hospitality, and social care is likely to be significant. These industries remain major employers across Pembrokeshire, Carmarthenshire and Ceredigion, with businesses regularly reporting difficulties recruiting local staff.

The Herald understands that officials expect more than 1,000 young people nationally to move into jobs within the first six months, with additional programmes promised as the government prepares to publish its national youth strategy.

Political dispute over the impact

The Conservatives accused the Chancellor of “driving youth unemployment up” through recent tax decisions, claiming the new scheme “gives with one hand while taking with the other”. However, ministers insist the investment represents a “downpayment on young people’s future” and will help address the rise in long-term sickness and disability among under-25s – one of the biggest barriers to work.

Further announcements are expected next week, including new details on the government’s pledge to make apprenticeships for under-25s at small and medium-sized businesses completely free.

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News

First Minister welcomes political leaders to Wales to celebrate creative industries

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Summit brings together UK, Irish and Crown Dependency leaders in Cardiff

CARDIFF hosted senior political leaders from across the UK, Ireland and the Crown Dependencies on Friday (Dec 5), as First Minister Eluned Morgan welcomed delegates to the latest meeting of the British-Irish Council – with a focus on unlocking the potential of the creative industries.

The First Minister chaired the summit, which was attended by a wide group of political leaders, including the Chief Ministers of Guernsey, Jersey and the Isle of Man; Northern Ireland’s First Minister Michelle O’Neill and deputy First Minister Emma Little-Pengelly; Irish Taoiseach Micheál Martin; Tánaiste Simon Harris; Irish Ministers Helen McEntee and Darren Jones; Scottish First Minister John Swinney; and UK Prime Minister Sir Keir Starmer.

Also present were Hilary Benn, Secretary of State for Northern Ireland; Jo Stevens, Secretary of State for Wales; and the Welsh Government’s Cabinet Secretary for the Economy, Rebecca Evans, alongside Culture Minister Jack Sargeant.

This is the second major international-facing event hosted by the First Minister this week, following Monday’s Wales Investment Summit, which attracted more than 300 business leaders from across the globe.

Speaking after the meeting, First Minister Eluned Morgan said the gathering highlighted Wales’s growing reputation as a creative powerhouse.

“Today’s summit was a great opportunity to welcome friends to Wales to celebrate our vibrant and dynamic creative industries. Our creative industries enrich our lives in so many ways – providing enjoyment and memories,” she said.

“The sector is also a cornerstone of our economy – the sectors supported by Creative Wales have over 3,500 businesses, employing 35,000 people with an annual turnover of £1.5bn.”

Cabinet Secretary for Culture Jack Sargeant said Welsh creativity continues to make an impact well beyond the nation’s borders.

“From film and television to gaming, music, publishing and immersive technologies, Welsh creativity is making waves globally,” he said.

“Our creative sectors are a huge success story. Just this week we announced £2m for Bad Wolf to produce two new TV productions that will bring £30m to the Welsh economy. That takes our production investment to £33.8m in 70 projects, generating £419.7m since Creative Wales was launched in 2020.”

The Herald understands the Welsh Government intends to continue using the British-Irish Council as a platform to promote Wales’s cultural output, economic potential and creative expertise on the international stage.

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