Agenda item

To scrutinize the draft strategy for the development of Gwynedd's economy between 2025 and 2035.

DECISION

1.     Accept the strategy and note the observations.

2.     Express concern regarding the availability of grants for deprived areas such as Gwynedd, and express hope that there will be equality and fairness within the County in relation to the distribution of resources and support.

3.     Note the importance of collaboration between the Economy and Community Department and the Environment Department to ensure that the New Local Development Plan addresses the need to attract jobs and businesses to the County. In the same way, collaborate with Eryri National Park.

4.     Suggest that a clear structure is established to review the progress at the end of the year against the delivery plan.

The Cabinet Member for Economy and Community presented the report, noting that the report had been drawn up following extensive consultation with several businesses and organisations. It was noted that the current economic situation was challenging with businesses continuing to face many changes and challenges, including rising costs, the speed of digital transformation and the need to develop appropriate skills sustainably across the county.

It was noted that a recent statement from the Welsh Government referred to the possibility of £550 million of funding to boost the economy in Wales, but there was no clarity as to where that money would be allocated. It was noted that the situation was unclear, stressing that the level of funding received had decreased significantly. It was elaborated that around £20 million was received two years ago with £8.5 million received this year, and that this figure could decrease further next year.

It was stressed, therefore, that a clear strategy was needed to outline the priorities moving forward. It was noted that, following the receipt of input from Committee Members in February on the priorities for increasing the future prosperity of Gwynedd's residents and communities, an initial draft of the long-term strategy would be submitted to the Committee for Members to offer input and feedback before the document was confirmed.

It was emphasised that the long-term strategy in question sets the overall direction, with an action plan behind it to outline the projects that would contribute to the realisation of the strategy, and that said plan would be updated annually. It was noted that this was not just a Council strategy, but a strategy for the whole county, with the intention of continuing to work closely with partners to finalise the final document.

The intention to establish a Gwynedd Economy Forum was explained to co-ordinate the work with partners from all sectors and to build on the positive experiences of implementing the Shared Prosperity Fund. It was noted that the next steps would be to receive additional input, establish the Gwynedd Economy Forum, confirm the content of the strategy, and submit the final document to Cabinet and then to the Full Council.

The Committee was thanked for its 17 comments at the meeting on 13 February 2025, and it was noted that these had been considered in the formulation of the strategy.

During the discussion, the following observations were made: 

It was noted that it was a pleasure to see the work coming to fruition, and more information about the Gwynedd Economy Forum was requested, specifically in terms of membership and how often it would meet. In response, it was noted that the intention was to include representatives from the main sectors that are important to Gwynedd, such as agriculture, tourism, education, universities and colleges, as well as local business owners, entrepreneurs and economic experts. It was emphasised that the representation of the private sector was an essential element of the Forum to secure practical advice and expertise.

Questions were asked about the references to deprived areas of Gwynedd in the strategy, noting that there was no specific reference to fostering economic growth in areas such as Meirionnydd and Dwyfor. It was stressed that more emphasis was needed on these areas within the strategy. In response, it was noted that this was a fair point, and that the geographical element should be underlined more clearly within the document. It was explained that the action plans under the strategy would include consideration of the geographical matters, and it was emphasised that the department strived to ensure fairness across the whole county. Although less funding was available, it was noted that the intention was to maintain a fair distribution of the resources available.

An update on the situation at Llanbedr and Trawsfynydd was requested. In response, it was explained that the development project at Llanbedr continued to be linked to the development of the new road, and that it was hoped that the work would progress by next May. In the case of Trawsfynydd, it was noted that an investment of £70 million had been recently announced for the decommissioning project over the next three years, with the expectation that this would create between 150 and 200 local jobs. It was emphasised that work was underway to strengthen the opportunities in the area, including the development of a science park and elements such as data centres and artificial intelligence.

In relation to Llanbedr, it was emphasised that pressure needed to be put on the Welsh Government to earmark funding before May, noting that it was not fair to expect the North Wales Corporate Joint Committee to provide the funding. The need to continue to press for the continuation of the decommissioning process at the Trawsfynydd site was noted, noting the risk of the process slipping as the financial plans had not increased in line with inflation. In response, it was noted that this point had been raised with the relevant bodies at the Trawsfynydd Oversight Board.

Concern was noted about the lack of Welsh speakers in senior positions and the influence this could have on the proportion of the non-Welsh speaking workforce. The need to monitor the situation and ensure fairness for Welsh speakers within public and private workplaces was emphasised.

The future growth of the economy and the impact of additional costs such as the national insurance tax on small businesses, particularly in the tourism sector, was questioned. It was noted that several businesses were concerned about this matter and, as a result, had reduced their workforce. There was further questioning as to what grants were available to assist these businesses, especially the rural businesses. In response, it was noted:-

·       There was a lack of clarity regarding grants as they were constantly changing, with the Welsh Government setting the allocations from year to year.

·       The economic vision was based on "growth for purpose" rather than "growth for growth’s sake", with a focus on maintaining and maximising what was available and supporting local businesses to save costs, increase income and adapt to a net zero economy.

·       The strategy included new opportunities that were suitable and appropriate for Gwynedd as an area, seeking to capitalise on local strengths and geographical elements such as sites like Trawsfynydd.

·       The Annual Action Plans would set out the practical actions and local projects that would contribute to these aims, relying substantially on external funding and private sector contribution.

·       The current situation needed to be protected while looking to the future.

It was questioned where economic growth was projected in the coming years, stressing the need to create good quality jobs to keep young people in the county. In response, it was noted that access to the electricity grid was crucial, with developments such as data centres, new agricultural developments in Glynllifon and clean energy projects underway. It was noted that while the financial situation was challenging, it was hoped that prosperity and growth would be seen with the new technology. It was stressed that the programme of schemes would be included in the annual action plans. It was noted that it was intended to review them annually to identify the relevant projects as circumstances and private sector interest developed.

In relation to planning applications, awareness was expressed of businesses intending to move to Gwynedd to develop their activity but had not received planning permission. It was questioned how much frustration this created for the development of Gwynedd's economy, and whether representation from the planning area would be part of the Gwynedd Economy Forum. In response, it was noted that planning was a critical area for economic success and was mentioned in the strategy. It was further noted that representation from the planning area would be part of the Gwynedd Economy Forum.

Concern was noted about the soft nature of the strategy in terms of language use, with reference to words such as 'support' and 'promote', as well as the delay in receiving the draft document for 2025-26. In response, it was noted that strategic documents were directional documents and therefore tended to be soft in tone, and that the action plans included the concrete actions. It was noted that a delay in receiving a funding settlement this year had led to a delay in the preparation of the work, and that action had to be taken within a short financial period.

Concern was expressed about the lack of certainty about the future of grants, referring to the programmes that expired in March 2026. In response, it was noted that several successful programmes had been in place over the past three years, fully funded by grants. It was noted that uncertainty about ongoing funding created uncertainty for Council staff about their working contracts. It was stressed that over half of the department's workforce was on short-term contracts due to reliance on grants, creating a challenge in retaining experienced staff. It was noted that the department was concerned about this and efforts to receive this grant funding for next year would be prioritised.

A request was made for more information about economy schemes relating to the Welsh language and efforts to attract people back to Gwynedd. In response, it was noted that the department had been working on the Arfor programme over the past three years with a budget of £11 million, but this year only received bridging funds. It was emphasised, however, that the lessons learnt, and research carried out over the last three years, such as what mattered to young people and what conditions and circumstances would attract them back, would continue to be used. It was noted that the matter was a priority within the strategy and was therefore being prioritised in grant applications to continue to build on the work that had already been done.

More information was requested regarding collaboration between the Economy and Community Department and the Environment Department to ensure that the strategy was fully considered as the new Local Development Plan was developed. In response, it was noted that there was a clear link between the strategy and the development plan, and that the two strategies would move in the same direction. It was noted that a close working relationship existed for major projects, and that the Department highlighted the importance of the plans to the local economy and offered their views as the planning processes progress.

Further details regarding the evaluation of the Arfor programme were requested. In response, it was noted that the evaluation had been commissioned and shared with the four counties, and that it showed which schemes had succeeded best, helping to identify,  moving forward, which type of interventions made the biggest difference. It was noted that the intention was to publish the report by December 2025, having been agreed with the Welsh Government, to ensure that the findings would inform the work into the future.

The lack of discussion between the Environment Department and the Economy and Community Department in relation to various planning applications, was highlighted. The need for better communication between the Departments was noted, particularly in relation to smaller developments and developments in rural areas. In response, it was noted that the working relationship on large projects was strong, but that the department would discuss with the Environment Department how to extend this to smaller projects.

The importance of supporting the work taking place in Llanbedr in relation to drone developments was emphasised, noting that these developments benefitted agriculture. In response, it was stressed that there was no military work on the site and that the Council would continue to support the development.

It was noted that clean energy generation and hydro schemes were not an industry with potential for growth at present, as the prices offered for this electricity by the Government had dropped significantly.

Opinions were expressed that the delivery plan over-emphasised the Arfon area. It was noted that greater emphasis needed to be placed on the development of basic skills such as carpentry, plumbers and electricians, within the construction industry when formulating training plans.

It was noted that there was a need for more regular reporting on the jobs created or safeguarded through the department's plans, including information at ward level, to demonstrate the impact of the investment on the people of Gwynedd.

RESOLVED

1. To accept the strategy and note the observations.

2. Express concern regarding the availability of grants for deprived areas such as Gwynedd, and express hope that there will be equality and fairness within the County in relation to the distribution of resources and support.

3. To note the importance of collaboration between the Economy and Community Department and the Environment  Department to ensure that the New Local Development Plan addresses the need to attract jobs and businesses to the County. Similarly, to collaborate with Eryri National Park.

4. Suggest that a clear structure is established to review the progress at the end of the year against the delivery plan.