Policy paper

2010 to 2015 government policy: economic growth in Wales

Updated 8 May 2015

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This is a copy of a document that stated a policy of the 2010 to 2015 Conservative and Liberal Democrat coalition government. The previous URL of this page was https://www.gov.uk/government/policies/helping-the-economy-in-wales-to-grow. Current policies can be found at the GOV.UK policies list.

Issue

The Welsh government is responsible for economic development in Wales, but the UK government can also help to make sure the conditions are right for the economy to grow and to increase employment, especially among young people.

Actions

Expanding and improving the rail network

Improving transport links is essential to provide the conditions for more investment and growth in Wales.

We are electrifying the Great Western Mainline to Swansea and are committed to progressively electrifying the rail network.

Superfast Cymru project - installing broadband in rural Wales

As part of our work to transform the UK’s broadband network by 2015, we are providing nearly £69 million to help bring broadband to everyone and superfast broadband to 96% of homes and businesses.

Cardiff and Newport will benefit from a share of £150 million to fund superconnected cities across the UK. This investment will help Cardiff and Newport compete with the world’s top digital cities and attract new investment and jobs.

Promoting Wales overseas

In March 2013, the Secretary of State completed a trade and investment mission to Asia – visiting Japan, Vietnam and Hong Kong Whilst in Japan, the Secretary of State met with the President of Hitachi, Hiroaki Nakanishi, to discuss the supply chain opportunities in Wales for the multi billion pound investment in the replacement nuclear powers station at Wylfa on Anglesey. On behalf of the Prime Minister, his engagements also supported the ‘GREAT’ Britain campaign, promote the UK as ‘open for business’, build strategic investment partnerships, particularly in the emerging markets and encourage Asian students to study in the UK.

A further mission in November 2013, to Singapore and Indonesia, focused on cementing the benefits of the GREAT campaign, showcasing the United Kingdom as a destination for business. In Indonesia, he undertook a number of bilateral discussions with senior business executives interested in investing in both the UK and Singaporean economies, including the CEO of the Singapore office of EADS. He was the first UK Cabinet Minister to attend and speak at the annual Bali Democracy Forum on behalf of the UK Government.

In February 2014 the Secretary of State visited Malaysia and Oman, taking the opportunity to meet with key business leaders to build on existing, and develop new business links. Whilst in Malaysia the Secretary of State visited the International University of Malaya Wales, a partnership between the University of Wales Trinity St David and the University of Malaysia. In Oman he explored the Foreign Direct Investment opportunities into the UK and opportunities for Wales in the Higher Education sector.

Making sure UK government policies and investment help to stimulate economic growth in Wales

The Wales Office represents Welsh interests within the UK government, and works to make sure that UK government policies and investment help to create the conditions for growth in Wales.

For example, the Government approved enhanced capital allowances (which reduce the amount of tax companies have to pay when they invest in their businesses) for specific sites within the Deeside, Haven and Ebbw Vale enterprise zones. It is estimated that this could help create up to 1,000 jobs. At Budget 2014, we announced an extension to the period in which enhanced capital allowances apply by three years, until 31 March 2020.

Background

We committed to supporting electrification of the rail network in the ‘Coalition programme for government’ in 2010.

In March 2011 we announced that, as part of our programme to expand and improve the rail network, we would electrify the line between Bristol and Cardiff.

In July 2012, we announced that as part of the ‘High level output specification’ the line from Cardiff to Swansea would also be electrified.