A MAJOR report, released today (November 3), says the economy and labour market of the South Wales Valleys remain mired in difficulty and argues that in recent years, through no fault of their own, the Valleys have lost their competitive edge in attracting business investment.
The new report, Next Steps for the Valleys, was commissioned by Industrial Communities Alliance Wales, part of the GB-wide association of local authorities covering the former coalfields and other older industrial areas.
The report explains that the Valleys, which have a population of three-quarters of a million, are possibly the most disadvantaged former industrial region in Britain:
- There are just 46 employee jobs per 100 residents of working age
- Very large numbers of residents have to travel to work outside the area • Almost one-in-five 16-64 year olds are out-of-work on benefits of one kind or another
The report explains how recent developments in UK regional policy have seriously weakened the ability of the Valleys to attract investment and jobs. ‘Assisted Area’ status and regional investment aid have been abolished and the replacement for EU funding – the UK Shared Prosperity Fund – is worth a lot less.
Restoring the Valleys’ competitive edge for business investment is the key priority, says the report.
The report sets out ten proposals for the UK and Welsh Governments, the private sector and local bodies such as Transport for Wales:
- Keep the funding flowing
Wales and the Valleys have traditionally done well out of UK and EU regeneration monies. This needs to be maintained. - Support manufacturing
Manufacturing still accounts for 34,000 jobs in the Valleys – one-in-six of the total – and remains a key driver of the local economy and a contributor to growth. - Restore regional investment aid
For decades this was a key tool of regional development until the abandonment of Assisted Area status in the wake of Brexit. - Invest in business sites and premises
No suitable space generally means no investment. Public investment can kick start development and break through barriers to growth. - Deliver an apprenticeship system that works
It’s what’s needed to provide opportunities for young people and to lay the foundations for business growth. - Make the most of the Heads of the Valleys road
A unique opportunity following the dualling of the A465 to bring forward new sites and new opportunities to travel to work, education, training and public services. - Build on the strengths of Valley towns
Encourage their development into local hubs for jobs and services, building their distinctive identities and opportunities. - Look after the fabric of smaller places
Recognise that to make them attractive places to live their historic buildings need to be restored and brought back into use for housing, jobs, services and community life. - Speed up journey times
There’s still a lot that needs to be done to speed travel by train and bus to Cardiff, Swansea and Newport, including local bus services linking to the rail network. - Balance momentum along the M4 with investment in the Valleys
Keep investing for growth along the M4 and surrounding areas, but where possible push more development into the Valleys themselves.
Meirion Thomas, ICA Wales Director and co-author of the report, said: “The view from residents and community leaders is far from positive. The shortage of good job opportunities is stressed as are the strains of lengthy commuting.
“But despite the negative picture painted by statistics the Valleys, it’s towns, communities and people are full of opportunities and possibilities.
“It’s time for the potential to be recognised. The proposals we’re putting forward are grounded in evidence and have been road-tested with key players. They reflect the reality of the Valleys today, and the future they deserve.”
Cllr Gareth Jones, Chair of ICA Wales, added: “In the coming weeks we’ll be targeting ministers in London and Cardiff with the report’s proposals.
“I’m particularly conscious that with the Senedd elections coming up next spring we have a programme here for Valleys that all political parties should be able to support and adopt.”
