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

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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.

 

Community

Princess of Wales praised for ‘skill’ during local wool mill and factory visit

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Royal tour shines spotlight on west Wales textile heritage and local jobs

CATHERINE, Princess of Wales was told “she’s got the skill” after trying her hand at traditional textile work during a visit to west Wales on Tuesday (Feb 3).

The royal spent the day meeting staff and apprentices at two well-known manufacturers – Melin Tregwynt in Pembrokeshire and Hiut Denim in Cardigan – highlighting the region’s long-standing reputation for craftsmanship and small-scale, high-quality production.

Stitching and mending at historic mill

At Melin Tregwynt, a family-run woollen mill that now operates as an employee-owned trust, the princess was guided through each stage of production, from weaving to finishing.

In the quality control room she was invited to mend a blanket using a needle and thread, carefully repairing the fabric under the watchful eye of experienced staff.

Paula Harding, who has worked at the mill for more than a decade, praised her technique, saying: “She did it right – and she didn’t go through the other side. That’s skill. She’s got the skill.”

Laughing, the princess told workers: “You make it look so easy,” adding that the craft was clearly “a labour of love”.

She asked questions about the history of the business, which has produced Welsh-designed blankets and throws for more than a century, and spoke with several generations of the same families who have worked at the mill.

‘Made in Wales’ denim

Later, the princess travelled to Hiut Denim, the Cardigan-based firm credited with bringing jeans manufacturing back to the town after large factories closed in the early 2000s.

The company now focuses on small-batch, premium denim and employs skilled cutters and machinists locally.

During a tour of the factory floor, the princess tried cutting out a pair of jeans and helped stitch a “Made in Wales” label onto a finished pair that staff said would be presented to the Prince of Wales.

“He will love those,” she replied.

She joked that there was “no pressure” when handed the cutting tools and said she enjoys making clothes herself, admitting the most adventurous project she had attempted was sewing a pair of pyjamas.

The royal also stopped to greet Barney, the factory’s English cocker spaniel, drawing smiles from staff.

Meeting well-wishers

Crowds gathered outside both sites to catch a glimpse of the visitor, with the princess spending time chatting with families and children before moving on.

The visit forms part of ongoing efforts by the royal household to showcase traditional industries and skilled manufacturing across the UK, with west Wales’ textile sector recognised as a key part of the region’s heritage and economy.

For workers at both businesses, the message was simple: the spotlight on locally made products and homegrown skills was just as important as the royal presence itself.

Local flavour: The Princess of Wales chats with staff and accepts a jar of Crwst’s Welsh honey butter before departing Cardigan following her visit to Hiut Denim (Pic: Crwst).

 

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Crime

Man spared jail after admitting child abuse image offences

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Police seized devices after intelligence linked Pembrokeshire address to illegal cloud storage accounts

A 23-YEAR-OLD Pembrokeshire man has avoided immediate custody after admitting making and possessing indecent images of children, including extreme bestiality material.

Ryan Beale, aged 23, appeared at Swansea Crown Court for sentencing this week.

At his first hearing, before magistrates on December 31, he entered guilty pleas and being granted conditional bail.

The court heard the case followed an intelligence-led police investigation linking Beale to a Dropbox account suspected of storing illegal material. Officers executed a warrant at his home on December 18.

During his arrest, Beale told officers: “I don’t use Dropbox,” claiming his email and Google accounts had been compromised.

However, police seized his mobile phone and computer equipment. A forensic examination found the email address connected to the Dropbox account stored on his device. Although the account had also been accessed from overseas locations, including Nigeria, investigators were satisfied it was controlled by Beale and linked to a larger cloud storage account containing significant volumes of illegal content.

Officers discovered 120 Category A images, 36 Category B images and 29 Category C images.

Category A represents the most serious level of abuse.

The material included extreme and disturbing bestiality content. Further Category C images were also located within the Dropbox account.

Two identified victims depicted in the images were girls aged nine and eleven.

Beale initially denied the allegations but later admitted the offences.

Passing sentence, at Swansea Crown Court on Tuesday (Feb 3) the His Honour Geraint Walters said: “This was not an innocent pastime. Every time an adult views that image, a child is still being abused.”

He added that an early guilty plea had spared Beale immediate custody but warned the offences would have lifelong consequences.

“The public have no time for anybody doing this,” the judge said. “If you’re doing this, the police will find out. They didn’t knock on your door randomly — they knew what they were looking for.”

Beale was sentenced to eight months’ imprisonment, suspended for two years. He must complete 20 days of rehabilitation activity and pay £300 in prosecution costs.

The court also imposed a Sexual Harm Prevention Order, ordered the forfeiture and destruction of his electronic devices, and placed him on the Sex Offenders Register for ten years.

“If you keep yourself out of trouble, you won’t have to serve that custodial sentence,” the judge told him.

 

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Entertainment

One Night in Dublin returns to the Torch with a brand-new show

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ONE NIGHT IN DUBLIN is heading back to the stage at the Torch Theatre with a lively new production fronted by renowned Irish singer Danny Muldoon.

Tickets are already selling fast for the feel-good celebration of Irish music, which promises two hours of songs, stories and plenty of craic.

Backed by an award-winning five-piece band, Muldoon leads audiences through a packed set of sing-along favourites including Galway Girl, Tell Me Ma, The Irish Rover, Dirty Old Town, Whiskey in the Jar, The Wild Rover and The Galway Shawl, along with many more well-loved classics.

The show recreates the atmosphere of a bustling Dublin pub, complete with fiddle, whistle, guitars, banjo, bodhrán, accordion and driving drums, transporting the audience straight into “Murphy’s Tavern” for an unforgettable night of live entertainment.

Fans can also expect hits from Irish legends including The Pogues, The Saw Doctors, The Dubliners, The Fureys, Flogging Molly and Dropkick Murphys.

One Night in Dublin comes to the Torch Theatre on Thursday, March 26 at 7:30pm.

Tickets cost £26.50. Visit the theatre website or call the Box Office on (01646) 695267 to book.

 

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