UNIONS gave a cautious welcome today to a new fund for Wales worth half a billion pounds announced by First Minister Eluned Morgan.

The Local Growth Fund replaces money that used to come from the European Union and is intended to create jobs and grow productivity across Wales. 

“Our new Local Growth Fund for Wales is a significant opportunity to support businesses and social enterprises to grow, export and innovate,” Ms Morgan said.

“Decisions about how the money will be spent will return to Wales, honouring the UK government’s manifesto commitment to restore decision-making on money that previously came from the EU.”

The First Minister said the two governments had agreed a framework to set priorities and processes for allocating the funds.

Local authorities and other partners in Wales will also have a key role in deciding how the funding is spent, and the Welsh government will start to consult on the best way to use the money.

GMB Wales’s Tom Hoyles said: “It’s vital we invest now to create future jobs in this tough economic climate.”

TUC Cymru general secretary Shavanah Taj said: ”As trade unions, we know that economic growth must go hand-in-hand with fair work, social partnership, and strong public services.

“This new fund must prioritise creating good, unionised jobs, investing in skills, and tackling the structural inequalities that hold people back.”

While welcoming the Welsh government’s stated focus on high-growth sectors like AI, low-carbon energy, and digital transformation, Ms Taj gave a warning.

“These opportunities must be accessible to all, especially disadvantaged communities, disabled people, carers, and older workers,” the TUC Cymru leader said.

Plaid Cymru’s Luke Fletcher said: “The promise from Westminster was that Wales would receive ‘not a penny less’ in regional development funding after Brexit.

“But even this funding will leave Wales worse off to the tune of hundreds of millions of pounds.

“Plaid Cymru has consistently argued for the return of full decision-making powers over post-EU funding to Wales — something that this Labour government has failed to deliver, despite pre-election promises.”

Mr Fletcher wanted to see the details on whether this was a restoration of powers that Wales had before Brexit, or whether it was “just a smokescreen for continued Whitehall control.”