Westminster pulls plug on Western Gateway project that was meant to boost the economies of south Wales and the west of England

Martin Shipton

A cross-border initiative once hailed as a catalyst that would create jobs and boost prosperity on both sides of the Severn Estuary has had its funding pulled by the UK Government.

The Western Gateway was a strategic partnership launched in 2019 by the then Welsh Secretary Alun Cairns and Robert Jenrick, then the Secretary of State for Housing, Communities and Local Government.

The two Conservative Cabinet Ministers predicted that it would transform the economic prospects of south Wales and the west of England by harnessing collaboration between universities and businesses.

Linking a number of towns and cities across a wide region either side of the Severn the Western Gateway was meant to mirror the successful, established work of the Northern Powerhouse and Midlands Engine and would seek to ensure that the region was globally competitive.

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'Powerhouse'

Mr Cairns said at a launch event in Newport: “The Western Gateway will provide an arena for the joint strengths of two neighbouring areas with distinct identities and traditions to be harnessed.

“South Wales and the west of England already form a natural economic region with excellent transport networks in road and rail and well-established links in business, industry and education.

“The region can be a true powerhouse of the UK economy if we take this opportunity to galvanise its many strengths to generate ideas, innovation and entrepreneurship in order to stimulate jobs and growth.

“It also highlights how our United Kingdom is strengthened by maximising and harnessing in partnership the skills and talents of our nations and regions.

The then Chancellor of the Exchequer Sajid Javid said at the time: “Today we are announcing an exciting partnership to turbo charge growth across Wales and the south west of England.
“The Western Gateway is full of bustling towns and cities and boasts a rich cultural and industrial history – from the famous cheeses of Cheddar Gorge and iconic Roman Baths of Bath, to the thriving TV industry of Cardiff Bay.

“We won’t rest until we have unlocked the potential this region has to offer as we level-up opportunities across the UK.”

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Defund

Now, however, the Labour UK Government has decided to defund the Western Gateway, A spokesperson for the Ministry of Housing, Communities and Local Government said: "Our Plan for Change commits to ensuring every nation and region realises its full potential.

"Pan-Regional Partnerships have made a valuable contribution but as our English Devolution White Paper sets out, we are now moving to a different model of pan-regional collaboration where we are keen to support new models driven by Mayors and their partners."

Wales does not have a system of devolution to elected mayors, but the UK Government has said it would continue to work with the Welsh Government to develop local growth plans.

In a letter to Welsh Secretary Jo Stevens, her Tory Shadow Mims Davies MP said: “I am absolutely horrified to learn your government has pulled the crucial funding on the incredibly important Western Gateway, leaving it with no option but to wind down its important operations.

“The Western Gateway, which was funded entirely by the UK Government and attracted crucial private sector funding, has drafted and outlined strategic steps to help identify and unleash Wales' true economic potential.

“It is bitterly disappointing that the fantastic work undertaken by the organisation has been cancelled. Those undertaking this work are absolutely devastated and need feedback as to why.

“Will you urge your government colleagues to quickly re-consider this disappointing decision? Please stand up for this project and share your views on why you think this is acceptable, if you do agree.”

'Refused to engage'

In a statement, the chair of Western Gateway Sarah Williams-Gardener said: “This is a hugely disappointing decision from the UK Government. Despite representation from the Welsh Government calling for talks on how both governments can work together on this, requests to meet from business and locally elected leaders and MPs, they have refused to engage with any of us from our area on this decision.

“It’s been a great journey we’ve been on having delivered hundreds of millions of pounds of investment into key sites across the area; putting together a credible, locally supported cross border economic plan for growth which recognises our natural economic geography; and bringing together leaders from across the political spectrum to deliver for the 4.8million people who live here.

“While the UK Government has decided to put the brakes on this massive economic opportunity, I and our board of local authority leaders are committed to ensuring we can still deliver on our area’s potential. The evidence our partnership has uncovered shows that our area can become the fastest growing economy outside of London and we will do what we can to achieve this, with or without the Government’s help.”

A business leader close to the Western Gateway said: "We totally respect the UK Government's ambition to further devolve powers in England through Mayoral Combined Authorities. However, we are concerned that, in deciding not to fund the Western Gateway, they have failed to listen to our unique cross border area.

"This partnership has been the driving force in bringing together the area's talent to power growth and, with business starting to co-invest, has built real momentum. Research has shown that South Wales and Western England could be the fastest growing economic area outside of London. However with no organisation left in place to manage cross border economic planning, this work is now in jeopardy which is a major loss to the UK economy and our national mission for growth.

"I know the partnership tried to engage several times with the government and it is disappointing that there is still no transition funding on the table to continue this vital work momentum is at risk.”

A UK Government spokesperson in Wales said: “Growth is this government’s key mission and the Western Gateway has made a valuable contribution to support it, but we are now moving to a different model of collaboration.

“We are working with the Welsh Government and the other devolved governments to develop local growth plans which is part of our wider reset of relationships to support economic growth across Wales, Scotland and Northern Ireland.

“Collaboration between local authorities on both sides of the border will continue with initiatives such as the City and Growth Deals which are investing £790m in Wales and we are committed to ensuring Wales realises its full potential through our economic growth mission."

'Economic dependency'

The cross-border nature of the initiative was not universally popular, When the Welsh Government proposed a regional approach to economic development in 2020, Llyr Gruffydd MS, who was Plaid Cymru’s environment spokesperson, said: “Labour’s proposal is sadly a carbon copy of the Tory-inspired model of entrenched economic dependency.

“It offers an economic plan based on securing crumbs from somebody else’s table, rather than building up Wales’ economy in its own right.

It pushes the north and the south of our country even further apart and neglects the pressing need for improved north-south connectivity.

“Most importantly, it also neglects some of those parts of Wales most in need of regeneration and development, namely the western seaboard and the valleys of the south. This approach will not change the UK and Welsh governments’ failure to distribute wealth and growth equally across Wales.

“The Welsh Government must change tack and replace the four-region model proposed in Future Wales 2040 with an alternative approach focused on making Wales a connected, sustainable, prosperous and self-sufficient nation in every sense.”