Cross-border Western Gateway Partnership faces loss of £1m core funding

The future of the cross-border Western Gateway Partnership, established to champion the economies and investment potential of south Wales and the west of England, is under threat as the UK Government plans to pull its annual £1m funding.

In Rachel Reeves' Budget it was announced - subject to consultation - that funding for all pan-regional partnerships should cease at the end of the current financial year. The consultation, conducted via a questionnaire, closes on Monday, with a final decision anticipated in January.

The partnership is supported by local authorities, city regions, businesses, and universities from Pembrokeshire to Swindon. It was set up four years ago, partly in response to the growing influence of the Northern Powerhouse, which advocates for greater investment in the north of England.

Since then the partnership has achieved notable successes, including securing £100m from the UK Government and private sector for the development of new nuclear technology under the Severn Edge initiative.

Additionally, it has established a 'super cluster' to explore the use of hydrogen to decarbonise industry. It has has also outlined a series of rail enhancement projects necessary to address decades of underinvestment by both Tory and Labour UK governments on both sides of the border.

These projects include electrification to Temple Meads station in Bristol, constructing new stations in south Wales, and bringing relief lines into use to enable more trains between between Bristol and Cardiff. However, funding for these projects will ultimately depend on the UK Government.

Earlier this year, the Western Gateway also established an independent commission to evaluate the potential for tidal renewable energy projects in the Severn Estuary, including a tidal barrage that could generate around 7% of the UK's electricity needs. A barrage would also serve as a protective barrier against rising sea levels as a result of climate change. The commission's work, supported by £150,000 in funding from the Crown Estate, is expected to deliver its recommendations to the partnership next spring

Alongside its core funding from the UK Government, the partnership has secured around £700,000 in investment and in-kind support this year from the private sector and local authorities. it doesn't receive funding from the Welsh Government.

Given the current tough financial climate, particularly that facing local government, replacing the loss of core Westminster funding will be challenging. Without a reversal the partnership's reach will be significantly curtailed and could even lead to questions over its continued existence.

If the commission recommends a tidal barrage, a fully funded Western Gateway would be ideally positioned to advocate and lobby for its realisation - a process that would ultimately require UK Government backing.

Sarah Williams-Gardener, chair of the Western Gateway Partnership, said: "Through the Western Gateway, 28 local authorities, alongside businesses and universities, have been working together to deliver on our area's shared potential to become the fastest-growing economy outside of London.

"Already, we have attracted over £100m of investment into ensuring the area is at the forefront of developing low-carbon energy with Great British Nuclear at Severn Edge. Our Severn Estuary Commission is assessing our potential to build a world-leading tidal energy project, with a report due in March 2025. We have also developed the first cross-border, locally supported plan for improving the area's historic rail network issues.

"With 100,000 car journeys a day across the M4 bridge, the Western Gateway is unique in representing a naturally occurring economic geography, with businesses working across a national border. This economy exists now, and without forums like the Western Gateway to enable cross-border decision-making, a replacement would inevitably be needed.

"To compete with areas like the North of England and the rest of the world, our geography must come together at scale to capitalize on the opportunities we've begun to attract. With support from our local leaders, we are urging the governments of England and Wales to save this unique partnership and continue supporting cross-border working, which is essential for delivering the national mission for growth."

Huw Thomas, vice chair of the Western Gateway Partnership and leader of Cardiff Council, said: "The Western Gateway was formed by council leaders on both sides of the Severn Bridge, including Cardiff, to advocate for investment in this part of the UK and coordinate economic development opportunities on both sides of the Wales-England border.

"It has developed a strong partnership with businesses and led on several important initiatives, including the tidal energy potential of the Severn Estuary, the hydrogen supercluster, and rail connectivity across the region.

"We believe there is a clear rationale for the UK Government to continue its financial support for the Western Gateway, which, in turn, can help deliver its mission for growth and new jobs in green industries. We will join other councils and the private sector in making the strongest possible case through the consultation."