WIREDGOV

Dualling of the last section of the A465 and a new specialist cancer care centre at Velindre hospital are set to be delivered under investment plans unveiled by Finance Minister Jane Hutt 

A £1bn investment into major infrastructure projects between 2017-18 and 2021-22, which has the potential to create 6,500 jobs and provide a sustainable boost to the Welsh economy, will be undertaken using new innovative investment models.  

Following the UK Government’s programme of cuts to public spending, which has seen the Welsh Budget cut by 10% since 2010, Welsh Ministers have already developed new and innovative methods of financing infrastructure investments, including the £340 million Local Government Borrowing Initiative and the £125 million Housing Finance Grant.

Addressing the National Assembly for Wales, the Minister gave details of how the Welsh Government intends to supplement its capital budget with direct borrowing and revenue-funded innovative financial instruments to invest in a number of major priority schemes, as set out in the Wales Infrastructure Investment Plan (WIIP).

The new investments include:

• A465 Sections 5&6 (Dowlais Top to A470 Junction and A465 / A470 Junction to Hirwaun) - £300m: This investment means that the whole of the A465 is expected to be dualled by 2020.
• A new Specialist Cancer Care Centre, enhancing the capacity of the Velindre Trust - £210m: this will enable the construction of a brand new hospital to provide cancer patients with access to high quality services comparable with the best in the world.

The Minister also confirmed the Welsh Government would make full use of the £500m of direct borrowing that Ministers will, in the future, be able to undertake as a result of the Wales Bill. The results of a consultation on the major enhancement of the M4 around Newport are currently being considered and a decision is expected this summer.  Once a decision has been made the Minister said "it would feature as an early priority for deployment of our direct borrowing powers."

Finance Minister, Jane Hutt said:

"Investing in our infrastructure to create jobs and boost economic growth is my number one priority.

"The £1billion infrastructure investment that I have announced today represents a vital injection of investment at a time when the economy and our health services most need it. It reflects this Welsh Government’s desire to use the full range of its resources to boost investment.  We are providing a reasoned, affordable and desirable alternative to the austerity measures that would choke off investment had we not acted decisively.

"In today’s challenging economic environment, compounded by profound social change, finding new sources of funding is harder than ever. But this additional expenditure is an investment in our economy and in our people. In short, it is an investment in the future of Wales."

Since its publication, the WIIP has provided the strategic basis for additional infrastructure investment totalling around £2 billion – including investments in Next Generation Broadband, 21st Century Schools, and Flood and Coastal Erosion Risk Management, as well as investments providing financial support for SMEs, housing, and domestic energy efficiency.

This new £1bn investment in priority infrastructure projects will boost jobs and growth, provide training opportunities and improve facilities for delivering vital public services. It has the potential to increase economic output, fostering the creation of 6,500 extra jobs. It means that – over the ten year period between 2012 and 2022 – the Welsh Government will have boosted funding for infrastructure by around 9% each year.

Links

A465 (Heads of the Valleys Road) - Dualling ProjectWales Infrastructure Investment Plan