£60m capital boost for local authorities thanks to Welsh Government initiative

Local authorities across Wales will boost their capital spend this year by £60m thanks to the Welsh Government’s Local Government Borrowing Initiative (LGBI).

£4m has been allocated from the Welsh Government to local authorities across Wales as the first tranche of the three year LGBI. This new support will allow councils to address the pressures on road maintenance budgets and boost investment in local highway improvement schemes.

During a visit to a footway renewal scheme in Newport Finance Minister Jane Hutt will see how the LGBI has helped Newport City Council carry out improvements.

Jane Hutt said:

“We know that local authority budgets across Wales are under pressure which is why we have introduced the LGBI. We want to help Councils address revenue pressures, and see them undertake new and necessary capital investment in our highways.

“By providing £4m in the first year of the scheme local authorities will be boosting their capital spending by £60m this year resulting in immediate improvements to our roads and highways, and creating or safeguarding around 900 jobs. Without our effective collaboration, this kind of investment would, quite simply, have been unaffordable.

“Developing new, innovative forms of financing, such as the LGBI, will form a key part of the Wales Infrastructure Investment Plan for Jobs and Growth (WIIP) which will be published next week. We remain a government committed to the provision of infrastructure and the creation of jobs, and we want to take every cost-effective opportunity to increase capital investment, despite the severe cuts in our budget, right across Wales.”

Transport Minister Carl Sargeant added:

“Thanks to close collaboration between the Welsh Government and local authorities we are seeing a significant increase in the ability of local authorities to fund major improvements to our highways.

“This money will help them to improve the condition of our roads, reduce travel times and increase safety for motorists and cyclists.

“The funding will also support local economies across Wales by creating new job opportunities and apprenticeships for local people as well as providing supply chain opportunities for local businesses”