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April 2020 | Issue 1 | Cardiff Capital Region Update
Medtech
Sector Proves
its Worth in
Coronavirus
Pandemic
Progress and Inclusion are Hailed in
2020-21 City Deal Business Plan
The Industries Set to Shape the Future
Welsh Economy
Meet the Experts Guiding Cardiff
Capital Region’s Investment Strategy
Coronavirus Brings Home Importance
of Investment in Digital Infrastructure
How FinTechs Have Adapted to
Covid-19: Backbase
www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 1
FOREWORD
BY SUZANNE CHESTERTON
Welcome to the first edition of our new publication.
In this publication we bring together the pick of and adaptations we have gone through in this region
the columns and articles written over the past few in response to the virus. There are inspiring stories
weeks by our own executives, panel members and about firms that have switched their production
cabinet members, who share their knowledge and lines, almost overnight, to making the critical,
expertise on subjects ranging from skills to our lifesaving equipment that has been so desperately
region’s digital infrastructure. Our objective in so needed by our health and social
doing is to demonstrate the breadth and depth care services.
of the strong thought leadership, ambition and
inspirational successes that exist in the Cardiff But our contributors have also looked ahead to the
Capital Region. future beyond Covid-19. Our chief executive, Kellie
Beirne, writes about how the crisis demonstrates
These articles have previously been featured on the value of science and innovation. Strategy lead
our own website, and on our dedicated section for clusters Jon Wood looks at the key role of the
on the Business News Wales site. Their joint medtech sector, and Leigh Hughes, chairman of
exposure on these two sites, as well as extensive the Employment and Skills Board, explains how
promotion through social media, has ensured they the Capital Region plans to ensure its people have
have already reached a wide external audience. the skills they need to succeed in the future.
However, this publication brings them together in
a handy way for our own people to read in a more Future editions of this magazine will no doubt
convenient way. reveal how our region successfully tackles the
transition from a lockdowned economy to
This particular collection graphically reflects the one focused on recovery, reconstruction and
dramatic developments of the last few weeks. resurgence. We hope you enjoy this collection
The early ones cover the unveiling of our 2020- of articles. There will be more to come!
21 business plan and the decisions taken on our
investment strategy at the beginning of March.
Our chief operating officer Rhys Thomas explains
the long-term goals of the Capital Region, while
Suzanne Chesterton
Kevin Gardner sets out how the investment strategy Marketing & Communications Lead
will help achieve them. Chair Frank Holmes writes
about how collaboration and cohesion at every
level of government across the region are key to
ensuring success.
Those early articles were written before the
coronavirus pandemic reached our shores and the
country went into lockdown. The later articles in
this collection are all about the massive changes
www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 3
Cardiff Capital Region
Launches New Innovative
News Channel
Cardiff Capital Region is launching Frank Holmes, Chairman of Economic
Growth Partnership, Cardiff Capital Region
a news channel dedicated to all the
ongoing developments within the The launch of this new channel
organisation later this month. provides us with a substantial
The new channel is being created in platform from which we can
partnership with Welsh Independent communicate with the business
publisher Business News Wales and community and industry partners.
will showcase the latest news and We understand the significant
developments as the region transforms importance of developing
itself to cope with the economic collaborative working partnerships,
challenges ahead. it is a fundamental principle of our
strategy and cohesive approach of
Featuring podcasts and columns from engaging with the Welsh business
the leading individuals involved as well network.
as analytical articles and round-ups, the
channel will be the go-to place for all Mark Powney, MD of Business News Wales,
the latest information on what’s said:
happening in Cardiff Capital Region.
Our latest new channel will play a
Kellie Beirne, Director of the Cardiff Capital crucial role in telling the people of
Region City Deal, said: south-east Wales how Cardiff Capital
Region is reshaping their lives. I am
This new channel gives us the
opportunity to tell people about all
the exciting things that are happening
really excited to be able to launch
this new venture in partnership with KELLIE BEIRNE
Cardiff Capital Region.
in the Cardiff Capital Region.
Communicating these developments
is essential and the partnership with
OUR VISION FOR THE
CAPITAL REGION IS ABOUT
a forward-thinking publisher such as
Business News Wales is a bespoke
collaboration for what we need to
MORE THAN TARGETS
achieve.
4 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales
Our Vision for the Capital Region: We’re doing it to make lives better and to generate Metro Plus is an opportunity for local councils to
About More Than Targets
options and choices so that people feel more in bring forward local transport enhancements earlier
control of their own destinies. than the South Wales Metro will impact them,
to start building momentum and getting to grips
Our analysis of priority sectors is interesting with some of the behavioural change levers, like
The Cardiff Capital Region (CCR) is home to some of the fastest because the region is growing in key areas and electric vehicle infrastructure, integrated public
there is potential to develop these as core economic transport and active travel, that will ready us for the
growing and most economically competitive places in the UK, cheek clusters – creating the stickiness and eco-systems bigger shifts coming in how we must safeguard our
by jowl with some of the least competitive and most disadvantaged. that help them inter-connect and embed. In environment.
Kellie Beirne advanced manufacturing, for example, the region
has global credentials in advanced compound Our Housing Fund, Homes for all the Region, is
semiconductors – a key component of the another way of directing investment to areas in
The Cardiff Capital Region (CCR) is home to some foundational wealth creation and dissemination, international smartphone, med-tech, automotive ways which tackle market failures and bring homes
of the fastest growing and most economically and how innovation applies to public services and and 5G industries. to communities that for too long have been blighted
competitive places in the UK, cheek by jowl civic society as much as it applies to businesses by sites left vacant as a result of deindustrialisation,
with some of the least competitive and most and technology. In life sciences we are strong at medical diagnostics ensuring these communities are equipped for the
disadvantaged. and devices. In the creative industries we have real future and bringing homes to places where they
An inclusive economy where strengths in stage and screen. But more than sectors would not otherwise have been built.
It’s not only the difference between Cardiff and everyone can play a part goes to – this is about place.
Blaenau Gwent – it’s the difference between the
north and south in some of the very same counties.
the heart of the political value-set We can talk about level playing
underpinning our City Deal. fields, but sometimes we need to
It’s over 20 years since the UK Competitiveness
be bold enough to tilt the playing “Resilience. It can sound
Index was first produced. Over that time, Blaenau Our political leaders want to make a real and
Gwent has remained at the very bottom of the enduring difference to all communities through field to where the biggest impact motherhood and apple
index. the region – not just certain parts of it. And I share can be made and channelled into pie, and I am the first
that view passionately.
The evidence shows it’s not likely to shift soon
the communities that most need to accept there are still
either. And, getting beyond this term ‘competitive’, The City Deal is not only about the return on to feel the benefits. more questions than
in one of the valleys I work in the difference in life investment or the bottom line – it’s about how we answers and there are no
expectancy is 15 years from bottom to top. take the opportunity to challenge conventions and We have devised an Investment Framework
think in a deep way about what it takes to create wherein we have three funds to stimulate more silver bullets. But at the
That’s why, in the CCR, our agenda isn’t about resilience and real engagement. So that some of place-driven activity. Our challenge fund is one very least, it does sound
economic growth in isolation. We can’t win the the kids that I share ties with feel this is about such example. It is about testing and trialling
same race as everyone else. We’ve got to build real them too. things that could have different impacts in different like something I should
sustainability and resilience into our economy. places. Better answers need better questions, and be absolutely happy to
See, we can set targets for growth, jobs and GVA we have to be open to an element of curiosity
Beyond just looking at the economies of the future – but this isn’t about hitting targets that miss the and experimentation if we’re going to move the be judged by.”
and positioning for comparative advantages – point. ‘The point’ for me is understanding that economic dial.
critical issues as they are – it’s also about local and ‘economic growth’ is the means, not the end in itself.
6 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 7
Progress and
Consequently, the CCR Regional Economic Cardiff Metro Central, a £200m scheme to There is no shortage of future projects for the
and Industrial Plan and Investment and provide Cardiff with a new central transport Regional Cabinet to consider, with 15 having
Intervention framework are focused not hub with bus and coach stations and an completed their initial enquiry documentation
Inclusion are
just on projects, but on where the benefits improved Central Station; and a further 28 in the pipeline, of which
will be felt. In the words of the business between three and six are expected to be
plan, “Sustainable, inclusive and distributed Housing Catalyst Fund, a £30-60m project brought forward for
Hailed in 2020- growth is a key aim, ensuring we make
sincere attempts to share and spread
prosperity.”
to address market failure in meeting housing
need by providing funding support in unlocking
development in underserved areas;
formal consideration.
The business plan lists four key objectives for
21 City Deal In terms of projects, the business plan lists
some of the highlights of the past year,
CS Connected – a £45m business case has
been submitted to the UK Government’s
2020/21:
To leverage the foundational capacity and
Business Plan including the compound semiconductor
foundry in Newport, which is now in
Strength in Places programme for this project to
build out the compound semiconductor cluster.
resources that are already in place to optimise
pipeline throughput and delivery of projects;
production after a drawdown of £33m out
of a planned project investment of £37.9m. Additionally, there are a number of other To evaluate progress so far in preparation for
Cardiff Capital Region is stepping initiatives that are at an advanced stage, and the Government’s ‘gateway’ or independent
There have been 65 new jobs created at IQE these include: assurance review next year;
up a gear as its 2020-21 business and a further 545 roles safeguarded at IQE
plan reveals some transformative and NWF. An additional 259 indirect supply Digital Infrastructure – there are a number of To influence and engage with potential new
new projects are expected to chain jobs have been created as a result potential projects in this critical pipeline, and partners to leverage investment and partnership
reach legal completion this year. of the foundry, and so far 697 jobs have CCR is actively working with Welsh Government opportunities;
been indirectly supported in the region’s and the Department for Culture, Media and
This is the fourth annual business plan for semiconductor cluster since the foundry Sport to deliver gigabit connectivity across the To build for the future of the region beyond
the capital region, which has seen some of began. The £37.9m investment by CCR is region in as short the city deal by developing a one region ethos,
the highest levels of relative GVA growth expected to leverage £375m in private a timeframe as possible. putting in place a set of fiscal levers, introducing
in the UK in 2018-19. But there is still sector investment. a statutory joint committee for the economy
much to do and the plan focuses on the Graduate Scheme – this scheme to make and developing a climate vision and mission
next steps that are expected to take shape For 2020-21 the business plan anticipates the region more attractive to graduates by statement.
over the coming year. progress on pushing forward further supporting graduate internships, which has
projects from strategic outline case through been developed in partnership with the The overarching objective of the CCR is defined
One of the key themes in this year’s to legal completion. These include: University of South Wales, Cardiff University, as growing a connected, competitive, and resilient
business plan is economic inclusion. Parts Cardiff Metropolitan University, the Open economy, and establishing the CCR as a place
of the region remain stubbornly low in Metro Plus, a £50m scheme to add University in Wales and business representatives, where prosperity is shared and wealth and
competitiveness compared to the rest of the further enhancements to the South has been a great success to date. Further wellbeing are compatible goals. The 2020/21
UK, with Blaenau Gwent and Merthyr stuck Wales Metro transport network including investments are scheduled to be made in the business plan signposts the next stage of the
at the bottom of the UK Competitiveness park and ride schemes, new bus and rail scheme to enable it to expand and grow. journey towards that goal.
Index. interchanges and improved stations;
8 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 9
Global Exposure
for Cardiff and the
Capital Region
Investment
Opportunities
Investment opportunities
throughout South East Wales will
soon be promoted to thousands
of the world’s leading property
development experts.
From March 10th to 12th representatives projects and initiatives with a regional, national
from Cardiff, The Capital Region and and international audience. Business interested
Swansea Bay City Region together with in finding out more should contact
Welsh Government, will be joining forces vikki.beesley@cardiff.gov.uk
and attending the MIPIM 2020 conference in
France. Listen to the podcasts below to hear Cllr Andrew
Morgan Rhondda Cynon Taff County Borough
MIPIM is the world’s premier international Council and Chair of Regional Cabinet Cardiff
property trade fair bringing together the Capital Region and Leader Of Cardiff Council,
most influential players from all international Cllr Huw Thomas talk to Mark Powney, Business
property sectors and, with over 6,000 News Wales Managing Director about why they
investors attending, offers unrivalled access believe that it is essential the region attends
to sources of capital worldwide. MIPIM this year and what they hope to achieve.
The 10 Local authorities that make up our
region together with the Swansea Bay city
region are all unequivocally committed to
seeing all parts of south wales grow and are Business News Wales Podcasts
taking a collective approach to attending
MIPIM this year. MIPIM Special: Featuring
Cllr Andrew Morgan
The team also includes partners from 27
different companies who are attending
for the numerous opportunities this event
RHYS THOMAS
affords for raising the profile of their own LISTEN NOW
projects, initiatives and professional services
with a regional, national and international
A CONFIDENT, COMPETITIVE
audience.
The event is still open to Welsh business who Business News Wales Podcasts
may benefit from this opportunity. Becoming MIPIM Special: Featuring
REGION: OUR GOAL FOR THE
a Cardiff partner at MIPIM will provide you
with numerous opportunities, engage with Cllr Huw Thomas
senior decision makers, network with fellow
FUTURE
delegates and raise the profile of your own
LISTEN NOW
10 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales
Our Goal for the Future: growth in the confidence that it will prove lasting
and sustainable.
A Confident, Competitive Region We’re not interested in simply
handing out grants
That’s what we’re trying to
achieve with our investments
and our programmes, to give
Our economy is struggling, that’s why in Cardiff Capital Region we have We see our role as attracting businesses that are our businesses the environment
the City Deal. Gross value added (GVA) in Wales is around 74 per cent here for the long term, with innovative funding they need to grow with
of the UK average, and in Cardiff Capital Region it’s not much better mechanisms that incentivise companies to stay. confidence and create resilient
communities for the benefit
than that. In the Cardiff Capital Region, although we have of all our people.
Rhys Thomas around £500m to invest in our various funds,
we are looking for a return on our investment in
some form. At the same time, we are not like a
commercial bank, nor are we risk averse.
Our goal in the Cardiff Capital Region is to nurture ours simply because of financial inducements; there
a resilient, sustainable economy where wealth is has to be something more to attract them. That When we invested £38m in the Compound
created and disseminated around our region. something is our people: it’s the talent and expertise Semiconductor Foundry in Newport it was
both within and coming out of our universities, and seen as high risk, but to us it was a key part in
To do that well, we need to focus our the ecosystem of our cyber SMEs where people can establishing this critical sector of the future in
efforts on encouraging growth in those bounce ideas around and develop them. our region.
sectors where our entrepreneurs can The same is true of some our other priority sectors, If you were to ask me how I hoped Cardiff Capital
build successful businesses that can such as life sciences where local companies are doing Region would be in 20 years’ time, I’d say I hope
face the future with confidence. great work in medical diagnostics and devices, and it will be a competitive region, confident in its
fintech where our strong foundation of financial own skin. That’s what we’re trying to achieve
That’s why we are targeting a small number of services businesses is providing a fertile environment with our investments and our programmes, to
priority sectors, where we can see the shoots already for young companies at the forefront of technology give our businesses the environment they need
pushing through and where there’s every reason to development. to grow with confidence and create resilient
hope Cardiff Capital Region can compete effectively communities for the benefit of all our people.
with other regions around the UK and further afield. Then there’s compound semiconductors, where
we have a world leading cluster emerging in
Take cyber for example. We have two large multi- the development and production of these vital
national corporates in the region, Airbus and Thales, components in the technologies of tomorrow.
but we also have a cluster of cyber companies and
SMEs in the region and a concentration of cyber Whether it’s in one of these sectors or our other
expertise within 50 miles. priority sectors such as the creative industries,
artificial intelligence, transport engineering or energy
And that’s important, because companies like Airbus and the environment, our approach in the Cardiff
and Thales do not come and stay in a region like Capital Region is primarily to enable homegrown
12 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 13
The Industries
Cyber security Life sciences Energy and environment
Cardiff Capital Region already has some major The life sciences sector is a huge one, but Cardiff Capital The decarbonisation agenda goes beyond road transport
international players in cyber security operating Region is focusing specifically on medical diagnostics and is becoming increasingly urgent as the target date
Set to Shape the here in Airbus and Thales. The focus of their work is
protection, attempting to predict cyber attacks and
and devices, where the region is strong. As with cyber,
it’s a sector that depends on the talent being produced
for Wales and the UK to achieve net zero greenhouse
gas emissions approaches. Cardiff Capital Region will
Future Welsh
prevent them before they happen, rather than the in the region’s universities, and where companies are encourage companies in this sector, not just because
forensic work of analysing attacks after they have attracted by the ecosystem of SMEs and start-ups that of their potential for growth but because decarbonising
taken place. has developed here. is a key part of creating the resilient and sustainable
Economy Crucially – and this is a major reason for companies
like Airbus and Thales being here – their presence
It’s another growing market as the technology of
healthcare becomes ever more advanced, and another
economy that our communities need in the future.
Artificial intelligence
Industry is no stranger to south east supports and is supported by a growing ecosystem sector where the marketplace is global. AI in many ways underpins the transformative work
Wales. The legacy of past industries of SMEs in the cyber sphere, fortified and fed by the that is taking place in many of the other priority sectors.
is all around, from Big Pit to the expertise and talent pool coming out of the region’s Fintech Whether it’s fintech, medical diagnostics or autonomous
universities. South east Wales already has a large financial services vehicles, the use of data and AI is playing an increasing
Ford engine plant at Bridgend, due sector with companies such as Admiral among the role.
to close later this year. These companies may not employ large numbers of region’s largest employers. Much of the employment
people, but they are high skilled, high value jobs, and so far though has been in call centres; in the future Creative industries
In Cardiff Capital Region the focus now is
the young people who fill them spend a lot of money companies will increasingly use technology – insurtech – The Cardiff Capital Region already has significant
not on the past but the future. The 10 local
in the local economy. Equally, for the companies to connect with their customers in new ways. strength in TV and film production, both with home
authorities that make up the region, and the
working in this field the market is not limited to the grown companies such as Bad Wolf, makers of His
central bodies that drive its strategy, are
region but is global, and there are applications in This disruptive revolution, which is already underway, Dark Materials, and with outside companies including
concerned above all with one question: how
other sectors from fintech to construction. provides an opportunity for technology-driven SMEs and Hollywood filmmakers coming here to use the region’s
do we make sure our region is as much an
start-ups to work alongside the industry leaders. The UK studios and outside locations. And the region is also
industrial powerhouse in the future as it was
Compound semiconductors currently leads the way in fintech and businesses created strong in homegrown music.
a century or more ago?
The next generation of semiconductors, compound and based in south east Wales are among the upsurge.
To do this successfully, Cardiff Capital Region semiconductors will be used in everything from There’s an important difference between this sector
needs to identify the industries that can create 5G to the Internet of Things, taking in robotics, Transport engineering and some of the others. While sectors such as cyber
prosperity in south east Wales over the next healthcare, autonomous vehicles and energy The UK Government has changed gears on the and life sciences rely on high skilled graduates and
10 to 20 years, and then work out how best efficiency along the way. And the good news is that decarbonisation of our road transport sector with the postgraduates, the creative industries employ a
they can be nurtured. south east Wales is at the forefront of development, announcement that the sale of new petrol and diesel wider range of skills including crafts and trades such
with a world leading cluster emerging in the region. vehicles will be banned from 2032. as costume and stage design, lighting and sound
Looking at where the region already has engineering.
growing or potential strength, the Regional Pioneering companies such as IQE are already With the end of the internal combustion engine in
Cabinet has picked out eight sectors – cyber well established here, working closely with Cardiff sight, companies working in the field of electric vehicle But the region also has many SMEs active in the games
security, compound semiconductors, life University in the Compound Semiconductor Centre. infrastructure and the development of batteries, as well media, where technology skills are important.
sciences, fintech, artificial intelligence, energy Cardiff Capital Region has supported the industry as other alternatives to fossil fuelled vehicles, will play
and environment, transport engineering with a £38m investment in a manufacturing facility, an important part in our future.
and the creative industries – where the Compound Semiconductor Foundry, at Newport,
encouragement now will help embed the ensuring that manufacturing of the semiconductors, But besides the automotive, south east Wales also has
industries of the future. and the jobs that go with it, is not offshored. strengths in other transport sectors such as aviation.
14 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 15
Podcast
Joanna Rees: Global Exposure
for Cardiff Capital Region
Investment opportunities throughout
South East Wales will soon be promoted
to thousands of the world’s leading
property development experts.
From March 10th to 12th representatives
from Cardiff, The Capital Region and
Swansea Bay City Region together
with Welsh Government, will be joining
forces and attending the MIPIM 2020
conference in France. The world’s premier
international property trade fair bringing
together the most influential players from
all international property sectors and, with
over 6,000 investors attending, offers
unrivalled access to sources of capital
worldwide.
To discuss MIPIM, the opportunity that
attending as a region gives us to showcase
our portfolio of investments and to
understand why the event offers
businesses such as Blake Morgan
unparalleled opportunities for
Business development and FRANK HOLMES
networking activity
our MD Mark Powney,
interviewed Joanna Rees,
Blake Morgan who is
COLLABORATION
attending this
years event. AND COHESION ARE
LISTEN NOW KEYS TO SUCCESS
16 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales
Collaboration and Cohesion: Finally – and this is especially close to That’s the final and perhaps most important
Keys to Success
my heart. way we are mutually dependent – we need the
private sector to invest, and the private sector
Our work depends crucially on needs us in the Cardiff Capital Region to provide
collaboration between the public the environment and opportunities to make such
investment worthwhile.
The world today is full of challenges that can often seem overwhelming. and private sectors.
Climate change, competitiveness, sustainable economic development, The City Deal is a unique programme, and a
and making sure growth benefits the entire community – all these can Government alone cannot produce economic departure from the normal governmental way
appear too big for any of us to tackle. growth, it depends crucially on the entrepreneurial of doing things.
skills of private sector employers to do that.
Frank Holmes But it’s not just about a programme, it’s more than
And while today’s politicians and civil servants are that. In the Cardiff Capital Region we are trying to
very knowledgeable about the economy, they still create a stronger, more competitive and vibrant
The world today is full of challenges that can The pollinators and flowering plants do not benefit greatly from the experience and insights region, with good quality, sustainable jobs and a
often seem overwhelming. collaborate in a conscious sense, but without each that only those who have worked in the private better distribution of the benefits of growth.
other both would die. sector can provide.
Climate change, competitiveness, sustainable Collaboration and cohesion on government policy
economic development, and making sure growth It’s this sense of our mutual interdependence That’s why our Economic Growth Partnership at every level, plus bonafide public and private
benefits the entire community – all these can that lies at the heart of the Cardiff Capital Region’s brings together some of our top business leaders, sector engagement in business, education and
appear too big for any of us to tackle. And that’s approach. At the heart of it are our 10 local along with leading academics, to advise the social enterprise, are priority objectives for all
no surprise, because they are. To imagine that we authorities, that have come together to pool their political leaders gathered in the Regional Cabinet. the region’s leaders, and key to Cardiff Capital
could come close to solving these issues without efforts into securing economic growth. Each has The representation of business at this level is Region becoming investable.
working together would be madness. recognised that on their own they can only achieve unprecedented.
so much, and that their own prospects depend as
The word ecosystem is often used in business to much on what’s happening over the border in the But it’s not just about collaboration, it’s also about
describe the complex network of self-supporting neighbouring boroughs as it does on anything they cohesion, about working together in a connected
relationships that sustain business sectors. can do alone. and complimentary way towards a common goal.
It’s an appropriate word, borrowed from the Cohesion is a fundamental building block of what
environmental sciences, to think also about the But that’s just the start of it. Our 10 local we are trying to do.
even broader complexities of economies as authorities, powerful as their joint efforts may
a whole. be, could not hope to achieve much without Cardiff Capital Region has £1.3bn of City Deal
working with the Welsh Government and the funding, but £734m of that is ring-fenced for the
Thinking in these terms reveals how mutually UK Government, to leverage the greater South Wales Metro, leaving us £495m that we
dependent we all are, just like the plants and resources that only those bodies can provide. can invest in economic development. To achieve
animals in a living ecosystem. While individuals the transformation we are hoping for we need
in a natural ecosystem compete for scarce to leverage a further £4bn in private sector
resources, at an interspecific level none would investment.
survive without the others.
18 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 19Meet the Experts competitiveness and capital markets. He wrote attitude, problem solving and being great team players. “The ambitious aims of CCR will not be realised
the “Celtic Tiger” report on Ireland, which he says We also want our future workforce to be healthy, without the upskilling of the current and future
happy and motivated. Every employer wants people workforce. As we all know, the world is changing at a
Guiding Cardiff Capital
remains the fastest growing (and probably most
misunderstood) Western European economy. displaying those values.” rapid pace and education and training providers need
to be ahead of the curve if Wales is to keep up with
Region’s Investment
He sees his role as to offer the “big picture, macro global developments. There are great opportunities
view.”
Cerys Furlong ahead of us and we need to make the most of them.”
Strategy “I have always been interested in what makes some
economies perform better than others, and I spend
Cerys Furlong is chief executive of
Chwarae Teg, the charity dedicated to
“We have the opportunity to excel in certain sectors
and need to build our infrastructures around that,” he
a lot of time discussing with global investors and said.
inspiring and delivering gender equality
businesses what it is that makes a region special,” he
Close to the heart of the Cardiff said.
in Wales. As well as her expertise in
Capital Region’s decision making is equality, diversity and inclusion, Cerys also
Chris Sutton
“I grew up (very happily) in Ely, Cardiff, and still have has small business experience as an owner of pubs and
the Economic Growth Partnership, close ties to the region (and the Bluebirds): it is a restaurants, and expertise in government relations and Chris Sutton is director of Sutton
which brings together representatives privilege to be able, in a small way, to influence the working across Welsh Government, local government Consulting. His 30 years’ working as
Deal’s investment framework. I like to think that I and the UK Government. a chartered surveyor in South Wales,
from business, the third sector, can translate economic jargon into common sense, dealing mainly with industrial and
Asked what she sees as distinctive about the EGP
education and local government. and my background perhaps gives me a healthy
approach, she said:
office premises, has given him a strong
sense of perspective.” insight into why businesses locate to
The EGP’s role is to advise the CCR “People around the table are not just the usual different parts of Cardiff Capital Region.
Regional Cabinet on investment decisions, suspects, and not just provider or interest groups as is
He chaired the Welsh Government’s advisory board for
using its expertise to pick out those Andrew Probert often the case with these types of forums. That means
the Central Cardiff Enterprise Zone and is proud of the
we can bring our wealth of experience and network,
projects that fit the CCR’s objective of Andrew Probert is a former finance contribution it made towards the capital’s development
without just the organisation party line.”
creating a more competitive region with and IT director of Admiral Group. pipeline, which has seen over 1.5 million sq ft of office
She added: and other floorspace delivered north and south of the
sustainable jobs and resilient communities. As employee number 7 at Admiral
Insurance Group, a FTSE 100 Great Western mainline.
“A true collaboration between the private, public
We asked six members of the EGP to tell company started and headquartered and third sectors will best enable us to meet the Most of his working career has been spent advising
us what they thought was distinctive about in south east Wales, which now employs more challenging objectives we have set for inclusive growth on the industrial property market, delivering on new
the CCR’s approach, what they hope it will than 11,000 people worldwide and over 8,000 in in the region. Each voice with equal weight, and with projects such as General Dynamics’ armoured vehicle
Wales, he says he’s been involved in his fair share of a clear focus on doing things differently. We haven’t plant in Merthyr Tydfil and the new-build CAF Rail
achieve, and how their own background economic growth and involvement from start up to necessarily made things easy for ourselves, but we facility in Llanwern. He has witnessed the trend
and experience equips them to help with mature multinational business. have to do things differently to get a different result.” towards off-shoring in the manufacturing sector over
the challenges of the region. the past 20 years, which he says leads to a planning
Speaking of his hopes for the EGP, Andrew said: Cerys says her experience across public, private and
issue regarding the reuse of post-industrial sites –
“It’s unusual to be involved in a body that both takes voluntary sectors means she can take a strategic
and still greater efforts to nurture and keep emerging
a broad view of a region’s economy and needs, and view of the challenges the region faces, and her
industries and start-ups.
particular experience in the field of equality and social
Kevin Gardiner applies that to pick individual investments that aim
justice means she brings a focus on the impact on Of the CCR, he said:
to enhance the direction of travel. I hope it achieves
Kevin Gardiner is a global investment a more balanced and vibrant economy.” different groups of people and communities to group
“We are seeing collaborative working across the city
strategist at Rothschild Wealth discussions, essential if the CCR is not to repeat
region and this ‘larger than local’ approach provides
Management. He thinks the way previous failures and achieve its aspirations of inclusive
a more strategic framework for investment whilst
public and private sectors are growth.
securing economies of scale in terms of delivery.
working together in the CCR in Andrew Cooksley Working with the HE and FE sectors, there is an
pursuit of goals that are at the same time
Andrew Cooksley is a founder and ambition to improve skills and create higher value-
commercial, inclusive and sustainable is something
CEO of ACT, the Cardiff-based Simon Pirotte added economic activity – however we must also
special.
training provider. He said the Simon Pirotte is principal and CEO deliver for our more disadvantaged communities.
“Among the public partners, for the ten local make-up of the EGP board allows of Bridgend College. With 35 years’ Chris said he found it “satisfying to work with a team
authorities in particular to be cooperating in pursuit for “big impact decision making” from experience of working in schools, further of leaders and other professionals on the EGP who
of shared objectives is I think really heartening at a a collective of experienced, highly knowledgeable education and higher education at home are all focused upon delivering a stronger region.”
time when people have perhaps become sceptical people who know the region well, and hopes it and abroad, Simon hopes to bring that
about the political process,” he said. achieves quick, high impact decision making and knowledge to the table “to help future He added:
He hopes this collaborative approach will help advice for the CCR board. proof our education system to meet the needs of local, “Hopefully my experience and local knowledge adds to
the CCR achieve better living standards, improved Andrew’s expertise lies in skills and people national and global economies.” the skillset of this wider team. I enjoy being task-driven
connections and infrastructure, and more development. “Getting this right in the future will be He said the CCR has developed “a collaborative and would hope that this helps the team deliver.”
competitive products, which should lead to more crucial to transforming the region,” he said. approach between a range of sectors, all united in This week the CCR Regional Cabinet will decide on
jobs and better pay, all without damaging the working together to make an impact on the economic
He added: the latest investment recommendations from the EGP.
environment. prosperity of the region and generating a positive The advice from the EGP’s experts will be a key factor
Kevin studied economics to a high level and worked “I’m particularly keen to get over to the board what social contribution.” in determining where the Regional Cabinet puts its
at the Bank of England before moving into the the skills delivery organisations need to be focused money.
private sector. He has written extensively about on. It’s more than just vocational skills, it’s about
20 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 21Podcast Interview
Carwyn Meets: Huw Thomas,
Leader of Cardiff Council
In this episode of Carwyn Meets, Carwyn
speaks to Huw Thomas, Leader of Cardiff
Council, to discuss the issues affecting
Wales’ capital.
LISTEN NOW
Podcast Interview
Carwyn Meets: Kellie Beirne
In this episode, Carwyn sits down with
Kellie Beirne, Chief Executive of Cardiff
Capital Region City Deal.
KEVIN GARDINER
LISTEN NOW
WHAT WE’RE TRYING
TO ACHIEVE WITH OUR
INVESTMENT STRATEGY
22 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.walesOur Investment Strategy: We could in theory go out and spend
What We’re Trying to Achieve
everything on grants for projects with short
shelf lives – after which the funds are gone We’re in the early stages
and we go back to normal. But the idea is that so there isn’t a definitive
we use the funds to amplify private sector
In the Cardiff Capital Region we’re trying to do something new with involvement where possible, to partner up
rule book, but we’re trying
the £495m we have to invest. Of course, it’s very important that the and ideally to perpetuate the longevity to be as pragmatic and
of those funds by recycling returns and
businesses we invest in are competitive and able to stand on their own
repayments back into other projects.
open minded as possible.
two feet, and that they deliver a return on the funds invested in them.
Kevin Gardiner We’re in the early stages so there isn’t a
definitive rule book, but we’re trying to be
as pragmatic and open minded as possible.
But that’s not all that we’re after: we are also and it’s something the Welsh Government takes We do have a list of priority sectors but
charged with delivering inclusive growth. So it’s tremendously seriously, but most of us also they’re not the only sectors we’re going to
about delivering investments and projects that happen to think it’s a good idea not to damage be considering, because if we’re trying to be
may not be fully commercial, but which also create the environment. inclusive we can’t confine our attentions just
jobs, and making sure that the benefits of the City to high productivity manufacturing ventures
Deal are spread widely throughout Cardiff Capital That’s something that would not necessarily for example. “High productivity” can also
Region. be delivered if market forces were left purely to mean “low employment”, and we want
themselves, or if our investments were to take a more jobs.
That means that we won’t just be focusing on the narrowly commercial view. The way we’re looking
ultra-attractive, high value added manufacturing to get involved is quite distinctive too. Finally, many local academics and business
and high tech enterprises that grab a lot of people would suggest that maybe the region
headlines, but we’ll also be looking to see what We’re not narrowly focused on only can sometimes be a little bit insular, and not
we can do to foster foundational employment and making loans or taking equity stakes, ambitious enough. Maybe we might be able,
better employment connectivity. in a tiny way, to make people change the way
we’ll be open to all sorts of potential they view going into business.
Can we make it easier, as the Metro is trying to partnerships and joint ventures.
do, for people to take jobs around the region in a If we were able to do that I think it would be
way they might not otherwise have done? Is there Ideally, most of the finance we offer is going to make fantastic. Having grown up happily in Ely in
anything we can do to help them improve their a return that’s defensible commercially, but some Cardiff, and lucky still to have friends there,
skills? of it will be aiming at more inclusive projects where I am very aware that parts of the region have
commercial returns won’t be the main driver. lagged behind the wider economy. For me
Another departure for us is that purely private personally, it would be wonderful to help in
sector investments don’t take things like We want our investment funds to be evergreen, a small way to make things a little better.
sustainability as seriously as we do. The Wellbeing because one of the things the City Deal is charged
of Future Generations Act is a first of its kind with is trying to leverage its impact.
24 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 25This part of the investment framework is
targeted at private sector businesses, R&D If you think your business or
organisations, HE institutions and foreign organisation can help make Cardiff
direct investors. Investments could be in
Capital Region a more competitive,
the region of £15-£50m, and the City Deal
is looking for a direct return on investment
connected and resilient place, or you
through repayable instruments. However, as have the sort of project that could
with all its investments, the City Deal is not benefit from our investment, simply
looking at possible investment opportunities get in touch with Rhys Thomas or
in purely commercial terms. Nicola Somerville at:
+44 (0) 3000 040414 to talk through
The second priority area is infrastructure.
your idea, or email us at:
Targets for investment could be public sector-
led or public-private infrastructure projects,
info@cardiffcapitalregion.wales.
that “create conditions for private success
and civic benefits” such as transport, digital
infrastructure, skills, and land assembly.
The aim of these investments is to, indirectly,
How Investment
promote economic growth and jobs by
addressing disparities such as poor
connectivity, the digital deficit and lack of
Will Lift the CCR
skills. The City Deal is expecting indirect
return on investment here, with a various
repayability options such as fiscal levers,
and How to Get
income streams and other socio-economic
benefits.
Involved
The final priority area is challenge, which is
where the City Deal hopes to really make a
difference by investing in innovation intensive
What do these mean? businesses and businesses in the foundational
economy that are creating new markets and
The Cardiff Capital Region City Deal One of the key objectives of the City Deal addressing regional challenges and priorities.
is about transformation – and it’s a is to make the CCR more competitive. Investments under this heading could range
This requires innovation, and so the City
transformation that businesses and Deal is looking for projects “that focus on
from £2m to £10m.
other organisations can help bring innovation that enhances productivity, Across all three of these priority areas, the
about. from the foundational economy through City Deal wants its investments not just to
to propositions that demonstrate unique enhance productivity and competitiveness,
It’s about taking a region of south east Wales IP, market leadership, and competitive but also to promote economic inclusion,
that’s been under-performing relative to the strengths”. reduce some of the things inhibiting
rest of the UK for decades, and turning it economic growth in the region
into one that’s closing the gap with its more and reduce place-based
successful competitors. It’s about helping disparities, spreading the
the tortoise catch up with and maybe even benefits of growth more
overtake the hare. The City Deal is looking
widely and fairly both in
for projects “that focus on geographical and
To put it in more prosaic terms, the City
Deal aims to achieve a 5% uplift in regional
innovation that enhances social terms.
gross value added (GVA) and create 25,000 productivity, from the The priority areas are not
additional jobs over its 20 year lifetime. foundational economy rigidly demarcated; an
To do this takes investment, and the City Deal through to propositions investment could straddle
two areas, such as the £38.5m
has around £1.2bn to invest. Of this, £734m is that demonstrate unique
invested into the compound
ringfenced for the South Wales Metro. That still IP, market leadership, and semiconductor foundry, or a
leaves £495m for investment in the CCR’s key
priorities, which it has identified as innovation,
competitive strengths”. project could start in one area
and migrate into another
infrastructure, and challenge.
over time.
26 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 27The projects, which have benefited to £150k has been approved by the City Deal The calibre of the proposals coming through
enormously from the expert advice and to develop the wider strategy. The Wales 5G the Framework highlight just how investable
discipline provided by both the Economic programme, led by Welsh Government, is seeking the Cardiff Capital Region truly is.
Growth Partnership and Investment Panel, £31m in total with a requirement of up to £3.65m
were approved following the Investment from CCR with the remainder being made up from The Economic Growth Partnership has been
Panel recommendation and final approval other public and private partners.
the absolute catalyst for bringing these
of the Regional Cabinet. They include:
momentous projects to fruition, which will
Funding to support the creation of a joint venture
The scaling up and roll-out of a full Life Sciences Park, Junction 32, Coryton/ Lower create sustainable growth, drive economic
programme for the CCR Graduate Scheme – Taff Valley as part of the evolution of a Medical inclusion and have the ability to transform
an already successful pilot, £1.5m has Devices and Diagnostics priority cluster. With our region.
been committed to scale up to a four- over 200 businesses, mainly SMEs, operating in
year programme delivering 500 graduate the MedTech sector in the CCR, with a combined The projects are absolutely critical in further
placements. The scheme will now sit within turnover of £1.5bn and 8,000 employees, this cementing the CCR as one of the most
the newly approved ‘Future Ready’ Skills sector offers enormous opportunity for the economically competitive and socially resilient
Framework, which aims to co-ordinate the Cardiff Capital Region. City Deal funding of £30k regions within the UK and we look forward
Key Cardiff Capital
development of all skills, learning and talent was agreed to be set aside for the immediate to working further with Welsh Government
development activity for the City Deal. commissioning of demand analysis and initial due
and other private sector organisations as we
diligence for the project.
progress to the next stages.”
Region Projects
The creation of a Housing Investment Fund
entitled ‘Homes for all the Region’ – Funding for essential design requirements for
a £45million fund set to deliver up to 2,800 advancement of Metro Central – £4m of City Deal Kellie Beirne, Director CCR City Deal said:
Given City Deal
homes for the region, with at least 50% of funding has been approved towards the £10m cost
the fund targeted at the areas of lowest of finalising design work and technical specification I am delighted with the decisions made by
economic competitiveness. Created to for the development of Metro Central. £40m of
Backing
the Regional Cabinet to progress this series
complement already established schemes, City Deal funding has already been set aside for
the Fund will seek a co-investment of £15m
of investments.
the project which is set to see the substantial
from Welsh Government, to support a City redevelopment of Cardiff Central Station to the
Deal investment of £30m. total value of £185m. Metro Central is a critical We have spent a lot of time to date putting
A series of key projects to help component of the overall South Wales Metro, set firm foundations in place, through things like
shape the Cardiff Capital Region The development of a Fibre Provision to benefit the entire Cardiff Capital Region. the Economic Growth Partnership and The
(CCR) as one of the most investable Programme – as part of a plan to enhance Investment and Intervention Framework,
areas in the UK have been approved region-wide digital connectivity needed to The CCR City Deal is a catalyst for long-term to help ensure we invest in the right things,
optimise economic growth, this programme economic revival, aiming for the whole region in things that will truly help us become a
by the CCR Regional Cabinet. aims to bring the benefits of fibre to become self-sufficient. It includes the ten Connected, Competitive and Resilient region.
The projects, all submitted through the connectivity to 330,000 premises in core local authorities of Blaenau Gwent, Bridgend,
Investment and Intervention Framework, will CCR towns and settlements. The Programme Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire,
That is now paying dividend; the impact of
see investments ranging from initial sums sets out a £200m plus investment Newport, Rhondda Cynon Taff, Torfaen and Vale
these investments will be truly pan regional,
totalling £215k to progress next steps business requirement, made up of a combination of of Glamorgan. The Regional Cabinet comprises the
City Deal, Welsh Government and private leaders of the ten unitary authorities. and will be critical in ensuring we create the
cases, through to a £30m commitment of
sector funding, with an initial £35k released right infrastructure and conditions precedent
City Deal funding for a Housing Investment
by the City Deal to begin an early business Of the £1.2 billion available, £734 million is for our businesses to grow with confidence and
Fund, and £1.5m to scale up the CCR graduate
programme. case. ringfenced for the South Wales Metro, and the create resilient communities for the benefit of
remaining £495 million is available for the funding all our people across the region.
The Framework, launched by the Economic The roll-out of a Wales 5G Programme – of high-potential projects in the region through its
Growth Partnership, focuses on the region’s The Programme will see the City Deal work Investment and Intervention Framework, launched We are making things happen. I am proud of
three priorities, innovation, infrastructure and closely with Welsh Government and other last year. So far, £38m has already been invested in what we’ve achieved to date and I am very
challenge, enabling maximum leverage of the public, private and HE partners to build creating the world’s first compound semiconductor much looking forward collaborating across
£495 million the CCR City Deal has available on a Rural Connected Communities (RCC) cluster in South-East Wales, CS Connected.
our business communities, Welsh Government
for investment. It is anticipated the decisions project to scale into 5G Wales. Backed by
made this week will result in a further £900m and our 10 local authorities to progress these
an approved £5m grant from the Digital, Councillor Andrew Morgan, Chair, CCR City
of private sector capital being invested into the Culture, Media and Sport Committee, Deal Regional Cabinet Committee and Leader investments through to implementation.”
region through the approved schemes, with matched by £5m private sector contributions, of Rhondda Cynon Taff County Borough
the housing fund alone contributing approx. an upfront funding contribution of up Council, said:
£700m of that projected sum.
28 Issue 1 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales Issue 1 | Cardiff Capital Region Update 29You can also read
