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What is the Cardiff Capital Region (CCR) City Deal?

The CCR City Deal is a programme for accelerating growth by maximising significant government investment in a long-term goalto improve economic conditions in South East Wales. The specific aims of the CCR can be summarised to:

  • improve productivity and connectivity;
  • create 25,000 jobs in its 20-year lifetime
  • build on foundations of innovation;
  • invest in physical and digital infrastructure;
  • provide support for business;
  • ensure that any economic benefits are felt across the region.
  • leverage at least £4billion of private sector investment

A core project of the City Deal is the delivery of an integrated South Wales Metro.

The CCR is made up of an area consisting the ten local authorities in South East Wales. These local authorities have formed a regional structure of governance which manages the City Deal.

Who is involved in the CCR City Deal?

The ten South East Wales local authorities are working together to deliver the CCR City Deal: Blaenau Gwent; Bridgend; Caerphilly; Cardiff; Merthyr Tydfil; Monmouthshire; Newport; Rhondda Cynon Taf; Torfaen; and Vale of Glamorgan. The Leaders of these ten authorities sit on a CCR Cabinet. Figures from private sector businesses, employer bodies, local government, education and skills, and the third sector also advise the Cabinet through bodies, which either have been specifically set up to support the Cabinet or currently exist and are consulted.

What funding does the City Deal have available?

In a Heads of Terms Agreement signed in 2016, the UK and Welsh Governments each committed £500m to the City Deal – which is supported by an additional £120m committed from the 10 local authority partners.

The City Deal Joint Working Agreement was formally signed by the ten local authority Leaders in a ceremony at Cardiff Airport on March 1, 2017.

Only a few weeks later, the Cardiff Capital Region Cabinet agreed its first investment: £37.9 million to support the development of a compound semiconductor industry cluster in South East Wales.

This project alone is expected to leverage up to £375 million of private sector investment over the next five years, and the creation of up to 2,000 high value, high-tech jobs, with the potential for hundreds more in the wider supply chain and cluster development.

Who is driving the City Deal?

The CCR Cabinet is responsible for all aspects of the City Deal, with support from a Programme Board based at Nantgarw,in Rhondda Cynon Taf. Designated Leaders, Chief Executives and Officers  then take the lead in delivering  various areas of the programme.

These are:

  • Finance and governance, to include the management of an investment fund
  • Regeneration, housing and planning – to identify potential areas for investment and development
  • Work, skills and economy, which is looking into a potential work and health programme, ways to regenerate the community, and skills and training to increase employment
  • Innovation and business partnership
  • Transport

How is the City Deal delivered?

To deliver the City Deal, the ten local authorities have set up a joint committee known as the Cardiff Capital Region Cabinet, which is is supported in its work by the following advisory bodies:

  • The CCR Transport Authority
  • The CCR Skills Partnership
  • The CCR Economic Growth Partnership
  • The CCR Business Council

What is the difference between the CCR Economic Growth Partnership and the CCR Business Council?

Both the CCR Economic Growth Partnership (EGP) and the CCR Business Council have the power to influence to advise on strategy and policy, and on City Deal investment proposals.

The EGP also has an advisory and advocacy role, working directly with the CCR Cabinet to promote the Region as a prime investment opportunity and visitor location.

Its Board consists of the Chair and 6 to 12 members made up of a combination of private sector businesses, employer bodies, local government, education and skills, and the third sector.

EGP Board members work on a variety of areas, such as reviewing and commenting on the Regional Economic Strategy, and reviewing and providing recommendations on investment decisions.

The Business Council acts as an advisory body to the Cabinet and has its own Board, consisting of leaders from all sectors important to the future economic growth.

It fosters regional innovation initiatives and collaboration through knowledge sharing, and is responsible for scrutinising and advising the EGP, both informally and through formal joint meetings.

The Business Council also provides networking opportunities, and works with the EGP on external events, promoting the region in the UK and abroad.

For more info, visit the CCR Economic Growth Partnershipor Business Councilpages.

What is the economic vision for the region?

With two cities (Cardiff and Newport) at its core, the region has seen significant regeneration and investment over recent decades. However, despite these strengths, numerous challenges remain.

The CCR partners’ approach provides an opportunity to continue tackling the area’s barriers to economic growth, by developing stronger local leadership; improving transport connectivity; increasing skill levels still further; supporting people into work; delivering an increase in house building; and giving businesses the support they need to innovate and grow.

The City Deal is building on the region’s existing strengths, its current skills base and three successful universities, creating a regional way of working which has never been seen before in South East Wales, developing a region where people want to live and work.

What type of projects are considered?

The Cardiff Capital Region will be seeking investment in areas that will support an increase in economic output and a reduction in worklessness, with a focus on:

  • Connectivity
  • Digital
  • Innovation
  • Skills and Worklessness
  • Business Support and Regeneration

How are the projects selected?

The assessment process takes place in four main steps:

  • The applicant submits a Strategic Outline Case (SOC) to the Programme Board, which categorises the initial proposal and refers to all four CCR key bodies for initial views of the fit with their theme. They will challenge the strategic benefit, value for money and deliverability of the project.
  • The applicant prepares an Outline Business Case (OBC). The CCR Cabinet receives global recommendations from the Programme Board, and ultimately decides whether the project can move to the next stage, needs further work, needs an alternative funding route, or is rejected.
  • The applicant sends a Full Business Case (FBC) to the Programme Board, which in turn provides the CCR Cabinet with specific financial recommendation.
  • If the project is indeed supported, the applicant will have to agree to a Monitoring and Evaluation plan, and will receive a letter outlining the conditions awarded.

For more information, visit the Apply page.

Are there other City Regions in the UK and have they been successful?

Yes. Since 2012, over 30 deals have successfully been concluded across the UK.

The first tranche, completed in July 2012, covered the eight largest English cities outside London. The second tranche, completed in July 2014, covered the next 14 largest English cities and their wider areas, as well as the next six English cities and areas with the highest population growth between 2001 and 2010.

In a one-off deal in August 2014, Glasgow and the Clyde Valley became the first area outside England to agree a deal, followed by Aberdeen, Cardiff and Inverness in 2016.

A City Deal for the Swansea Bay Region was signed in March, 2017.

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The CCR City Deal Wider Investment Fund is now open for applications. If you have a project with the potential to make a real positive impact on the regional economy, we want to hear from you.

How to Apply