• Swindon & Wiltshire Economy
• Thursday December 5 2024
• Author Name: Peter Davison

Economic powerhouse body for West at risk of closure as government threatens to pull funding

Leaders at the ‘Powerhouse’ organisation that aims to boost the economy of the West and Wales have urged businesses in the region to give the body their backing.

Western Gateway is the powerhouse partnership for an area which reaches from Swindon in the east to Swansea in the west, taking in the greater Bristol area along the way. It brings together businesses, public sector leaders, and academia to address major economic issues.

In October, the body launched a new strategy to double the size of the pan-regional economy by 2050 – adding an extra £250 billion to the UK economy.

The Plan for Sustainable Growth was launched by 700 businesses, 28 local authorities, and universities from both sides of the River Severn at the Western Gateway’s annual conference.

But less than a month later, the government published its wider Budget proposals following chancellor Rachel Reeves’ Budget announcement, saying it was ‘minded to’ withdraw funding for all six pan-regional partnerships.

Scrapping the body would throw into doubt a number of pan-regional economic projects, including the Plan for Sustainable Growth, which the body raise has the potential to create £250 billion of extra growth, and the Rail Vision 2050 – whose scrapping would be a “major blow” for decarbonisation of the rail network and leave 248,000 business customers without access to rail, with a cost of £17 billion to the economy.

Other major projects being led by the Western Gateway include a Hydrogen Delivery Pathway which could deliver 40,000 new jobs, a tidal power plan, and the Floating Offshore Wind project.

John Wilkinson, director of the Western Gateway, said: “Despite the huge potential of the area, progress towards its ambitions are now in peril.

“This political, industry and community collaboration could be lost without continued support from the government, with no current plans in the short term to replace it.”

Businesses that want to support the Western Gateway project can take part in the government consultation at https://www.gov.uk/government/consultations/consultation-on-ending-pan-regional-partnership-core-funding

The consultation closes on December 16.

Image courtesy of Image by Roman Grac at Pixabay