In March 2016, the Government committed to begin discussions on a city deal for the Swansea Bay city region. I can today inform the House that the Government have reached agreement with the Welsh Government and the four local authorities on a heads of terms city deal for the Swansea Bay city region which will create in excess of 9,000 jobs and bring almost £1.3 billion of investment to the region.
The heads of terms agreement paves the way for major infrastructure investment in the region, which seeks to support and further build on the area’s strengths including health, energy and manufacturing. The deal will help boost economic growth in the region by attracting new investors, giving local business the support they need to grow and increasing the available skills base.
The deal will deliver almost £1.3 billion of investment to the region. Central to this is £115.6 million from the UK Government and £125.4 million from the Welsh Government. Alongside local public sector funding this is projected to attract £637 million from the private sector. This funding package will be provided over a 15 year period, subject to the submission of detailed business cases.
The UK Government’s contribution to the fund will support investment in digital infrastructure and next generation technology, allowing the area to compete with some of the world’s best cities. It will also support a partnership with Tata Steel to establish an innovation and knowledge centre for steel which will focus on zero carbon steel making and the future sustainability of the industry.