An extra £85m for capital investment to support the economy in Wales

18 Jun 2019 11:29 AM

Minister for Finance and Trefnydd Rebecca Evans has announced a capital investment package of £85 million as part of the First Supplementary Budget 2019-20.

This immediate capital funding boost will support Wales in the event of a no deal Brexit. This investment will be made up of: 

• £50m to invest in local government social housing programmes, supporting the delivery of up to 650 homes across Wales and stimulating the construction industry with one year’s employment for around 1,000 people
• £5m to support the maintenance of our road network to ensure we continue to have a well-connected, reliable and resilient road network in all parts of Wales
• £10m for the Economy Futures Fund to support the delivery of the Economic Action Plan and strengthen the Welsh economy in the long term
• £20m for local government – in addition to the £100m package of capital funding over three years announced as part of the Budget.

The First Supplementary Budget will be laid before the National Assembly today [Tuesday 18 June] by the Minister for Finance. Speaking ahead, Rebecca Evans said;  “The risks associated with a no deal Brexit have not gone away. It is our duty as a responsible government to prepare – as far as possible – for all outcomes.

The £85m funding package will fund a range of projects that can be delivered quickly in year, providing economic benefits which are aligned to our priorities and can stimulate wider economic demand at a time when it is needed most.

While we are taking practical steps to prepare for a no deal Brexit, I want to be absolutely clear – a no deal Brexit would be hugely damaging to Wales and its economy.

This new funding is just one measure that the Welsh Government is taking to address the very real challenges that Brexit poses to our economy. In addition to our dedicated £50m EU transition fund and the £121m Business Finance package, delivered through the Development Bank of Wales, we are continuing to deploy a suite of measures to prepare for the impacts of Brexit.